FIIG - The Fixed Income Experts

FIIG High Yield Index

What is high yield Unrated and sub investment grade bonds are typically referred to as high yield bonds which means they are not rated or hold a rating of ‘BB+’ or below by rating agency S&P, or ‘Ba1’ by Moody’s. High yield bonds carry attractive yields but come with higher risk compared to investment grade bonds. The most important way to hedge against associated risks is to diversify. You will find here information on the key risks and other considerations for building and managing a portfolio of high yield bonds.

You will find information here on the key risk and other considerations

The Solactive FIIG Australian High Yield and Non Rated Bond TR Index (FIIG High Yield Index) is a new index that allows investors to assess performance of the AUD high yield bond market.

 

properties

Attractive properties: Desirable risk-return profile along with potential diversification benefits

momentum

Momentum: More Australians are looking to bonds to deliver reliable returns and protect their portfolios in ways that shares and property cannot

exculsivity

Exclusivity: first index solution to exclusively cover high-yield and non-investment grade bonds in the Australian market

transparency

Transparency: Provides individual and corporate investors a solid foundation to make prudent investment decisions.

The FIIG High Yield Index is the first index to exclusively cover high yield and non-rated bonds in Australia.

The Index is a rules based, value weighted index engineered to mirror the performance of the AUD denominated Australian high yield and non-rated corporate bonds universe.The index is specifically designed for benchmarking purposes in order to facilitate investors’ decision-making processes, whilst functioning as a leading benchmark for AUD denominated non-investment grade bonds.

Solactive FIIG Australian High Yield and Non Rated Bond TR Index performance

The FIIG High Yield Index chart
 

Since inception on 31 December 2012 the FIIG HY Index has generated a cumulative return of 60.77 % to 31 January 2020, or compound annual return of 6.93% over the same period.

 

Solactive FIIG Australian High Yield and Non Rated Bond TR Index performance

High Yield Index graphic
Year Index Value Absolute Return Annualised Return
1 Yrs 1,525.51 5.38% 5.38%
2 Yrs 1,431.37 12.32% 5.98%
3 Yrs 1,337.47 20.20% 6.33%
4 Yrs 1,189.42 35.16% 7.82%
5 Yrs 1,185.29 35.63% 6.28%
6 Yrs 1,086.66 47.94% 6.74%
7 Yrs 1,007.70 59.54% 6.90%
Inception 1,000.00 60.77% 6.93%

Selection Universe

The index consists of AUD-denominated domestic corporate bonds

  • Solactive FIIG Australian High Yield and Non Rated Bond TR Index.
  • Bloomberg Ticker: SOLFAUHY.
  • Currency: Australian dollars (AUD).
  • Minimum Amount Outstanding: AUD 20million.
  • Country of Domicile: Australia.
  • Rating: sub-investment grade or not rated by S&P Global Ratings and Moody’s Investors Service.
  • For additional information including index constituents click here.
Constituents Issuers Yield to Maturity Duration Time to Maturity Rating Aggregate Amount

53

41

4.58%

4.67

9.10

B

5.88 bn

Rating Breakdown

Maturity Breakdown

Issuer Breakdown

*Data as at 31 January 2020

About Solactive
Solactive AG is an innovative index provider that focuses on the development, calculation and distribution of tailor-made indices across all asset classes. As at January 2019, Solactive AG served approximately 400 clients in Europe, America and Asia, with approximately USD 200 billion invested in products linked to indices calculated by the company globally, primarily via 380 exchange-traded funds from a number of well-known providers. Solactive AG was established in 2007 and is headquartered in Frankfurt.

Bonds available through FIIG

Bonds available through FIIG

Choose from 500+ bonds
Coupon type
Fixed Coupon Bond
Price
$104.50
 Sector
Other Corporate
Maturity
Aug 2022
6.02%
Yield to maturity
Coupon type
Fixed Coupon Bond
Price
$103.63
 Sector
Consumer
Maturity
Jun 2022
5.74%
Yield to maturity
Coupon type
Fixed Coupon Bond
Price
$105.58
 Sector
Other Corporate
Maturity
May 2023
7.68%
Yield to maturity

Coupon type
Fixed Coupon Bond
Price
$105.50
 Sector
Technology
Maturity
Apr 2038

5.66%
Yield to maturity
Coupon type
Floating Rate Note
Price
$104.53
 Sector
Finance
Maturity
Jan 2049
7.31%
Yield to maturity
View all bonds

^ Pricing as at 15 January 2020. Subject to change. The yields and prices do not represent the prices that FIIG will transact with its clients. They simply represent FIIG's observation of the institutional market mid-point prices which are obtained from FIIG's trading with institutional counterparties, as well as numerous market data sources that FIIG has access to. A mid-point value sits between the typical bid (offer to buy) and ask (offer to sell) prices prevailing in the institutional market.

Choose from 116 bonds that pay over 6% returns

Coupon type
Fixed Rate Note
Price
$100.89
Sector
Finance
Maturity
May 2021

6.08%
Yield to maturity

Coupon type
Fixed Coupon Bond
Price
$104.37
Sector
Other Corporate
Maturity
Aug 2022

6.02%
Yield to maturity

Coupon type
Fixed Coupon Bond
Price
$101.65
Sector
Other Corporate
Maturity
May 2023

7.68%
Yield to maturity

Coupon type
Fixed Coupon Bond
Price
$102.10
Sector
Industrial
Maturity
Aug 2026

7.56%
Yield to maturity

Coupon type
Floating Rate Note
Price
$103.93
Sector
Finance
Maturity
Jan 2049

7.31%
Yield to maturity
View all bonds

Choose from 58 bonds that pay 5% returns

Coupon type
Fixed Coupon Bond
Price
$104.13
Sector
Consumer
Maturity
Jun 2022

5.74%
Yield to maturity

Coupon type
Fixed Coupon Bond
Price
$109.44
Sector
Technology
Maturity
Apr 2038

5.66%
Yield to maturity

Coupon type
Fixed Coupon Bond
Price
$102.88
Sector
Finance
Maturity
May 2022

5.29%
Yield to maturity

Coupon type
Fixed Coupon Bond
Price
$99.53
Sector
Industrial
Maturity
Nov 2028

5.27%
Yield to maturity

Coupon type
Fixed Coupon Bond
Price
$105.29
Sector
Energy & Resources
Maturity
Apr 2025

5.81%
Yield to maturity
View all bonds

Choose from 473 bonds that pay upto 5% returns

Coupon type
Floating Rate Note
Price
$100.58
Sector
Finance
Maturity
Aug 2025

4.94%
Yield to maturity

Coupon type
Fixed Coupon Bond
Price
$106.39
Sector
Utilities
Maturity
Feb 2043

3.95%
Yield to maturity

Coupon type
Fixed Coupon Bond
Price
$114.71
Sector
Finance
Maturity
Jun 2046

4.12%
Yield to maturity

Coupon type
Floating Rate Note
Price
$79.63
Sector
Finance
Maturity
Aug 2036

3.97%
Yield to maturity

Coupon type
Floating Rate Note
Price
$102.70
Sector
Consumer
Maturity
Jun 2045

2.91%
Yield to maturity
View all bonds 

^ Pricing as at 15 January 2020. Subject to change. The yields and prices do not represent the prices that FIIG will transact with its clients. They simply represent FIIG's observation of the institutional market mid-point prices which are obtained from FIIG's trading with institutional counterparties, as well as numerous market data sources that FIIG has access to. A mid-point value sits between the typical bid (offer to buy) and ask (offer to sell) prices prevailing in the institutional market.

High Yield Index graphic
Want your own bespoke portfolio?

We can help you construct a portfolio, tailored to your specific needs

Talk with an expert or call us today Phone 1800 01 01 81

Talk with an expert or call us today Phone 1800 01 01 81

High Yield Index graphic

Copyright © 2019 FIIG Securities Limited | ABN 68 085 661 632 | AFSL No 224659 | Financial Services GuideSitemap | About us
FIIG provides general financial product advice only.  For a copy of our disclaimer please refer to fiig.com.au/disclaimer
* Based on FIIG’s high yield sample portfolio. Click here to view. Subject to change and before fees. Please see our FSG for any applicable fees.