FIIG Monthly Income Fund

An efficient income solution through a diversified portfolio of Australian and global floating and fixed rate bonds, available to retail and wholesale investors.  

Targeting a return of 2% p.a. (after fees) above the Bloomberg AusBond Bank Bill Index, which equates to 6.442% p.a.^ as at 20 November 2024. 

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Diversified Portfolio
Daily Liquidity
Monthly Income
Capital Preservation

Fund Objective

The aim of the portfolio is to preserve capital, generate regular income and deliver an income return of 2% per annum above the Bloomberg AusBond Bank Bill Index, which as at 2 September 2024, the index is returning 4.39% which equates to an overall return of 6.39%^. This strategy is designed for investors who want the potential for regular income and capital stability.

Distribution Frequency

Monthly

Minimum suggested timeframe

3 years

Minimum initial investment amount

$10,000

Minimum additional investment amount

$1,000

Management Fee

0.50% p.a.

Buy Sell Spread

0.05% / 0.10%

Currency

AUD

Suitability

The Fund is likely suitable for investors looking to achieve a steady stream of income and capital stability over the medium term by investing in a portfolio of Investment Grade Australian and global fixed interest securities.

Portfolio Manager - FIIG Monthly Income Fund

Garreth Innes

Garreth has over 15 years’ of extensive experience in financial markets, including portfolio management roles with multi asset class exposure. He has individually managed significant volumes of capital invested in the fixed income asset class across a complex array of Investment Mandates and has led teams of analysts and junior managers. Garreth has additionally been a member on Tactical Asset Allocation committees and has successfully launched and managed an Australian Dollar Income Bond Fund for Asian clients. Garreth holds a Master’s Degree in Finance (UNSW) and is a CFA Charter holder.

Head of MIPS, Portfolio Manager - IMAs

Megan Romeo

Megan has in excess of 15 years’ experience in the Asia Pacific fixed income markets. Before joining FIIG in 2015, Megan worked for Standard & Poor’s Capital IQ, tailoring technically complex data and algorithm solutions for clients across the Asia Pacific. Megan holds a Bachelor of Science (Hons) in Quantum Physics and a Diploma of Financial Services (Securitisation). Her mathematical and statistical data analysis skillset, and development of trading and allocation algorithms, has been instrumental in the generation high alpha returns within all MIPS products, and the emerging equivalent record for the FIIG Australian Bond Fund.

 


Head of Investment Management

Kieran Quaine

Kieran has in excess of 35 years’ experience in senior roles in the fixed income market, primarily as a fund manager in charge of investing multiple billions of dollars across a wide and complex range of Investment Mandates. His experience includes roles as a US Investment Bank proprietary interest rate trader, as a debt originator, syndicator and institutional client relationship manager. Kieran has worked at FIIG Securities for over 15 years, including the last 9 years as Head of the Managed Income Portfolio Service (MIPS), developing the Individually Managed Account (IMA) business with Megan Romeo. Kieran has a BA (Accounting) from Canberra University and is a former Chairman of the AFMA Debt Capital Markets Committee. 

 

Kieran is the Portfolio Manager for the FIIG Australian Bond Fund.

OVERVIEW PORTFOLIO COMPOSITION PERFORMANCE PRICES DISTRIBUTION BENCHMARK DOCUMENTS FREQUENTLY ASKED QUESTIONS

SQM Research Rating for the FIIG Monthly Income Fund

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Investment Objective

The aim of the portfolio is to preserve capital, generate regular income and deliver an income return of 2% per annum above the Bloomberg AusBond Bank Bill Index. This strategy is designed for investors who want the potential for regular income and capital stability.

Why Invest in this Fund

For over 25 years, FIIG has been the leading independent fixed income specialists in Australia. The FIIG Monthly Income Fund is an actively managed, unit trust which utilises our proven duration and credit exposure investment strategies to pursue the goal of providing regular monthly income while protecting investor capital and generating performance in excess of the Bloomberg AusBond Bank Bill Index.

Risks – refer to the PDS for all risks associated with the Fund

An investment in the Fund is subject to general investment risks, credit risk, capital risk, regulatory and business risk, concentration risk, subordinated debt risk, liquidity risk, volatility / market risk, interest rate risk, operational risks, inflation risk, as well as specific risks of investing in a managed fund. Before making an investment, you should read the Product Disclosure Statement (PDS), in full to understand these risks. The PDS is available on fiig.com.au or by clicking here

Fund Composition

Sector Allocation

Chart Table
Sector Fund

Allocation by Credit Quality

Chart Table
Credit Rating Fund

Portfolio by Maturity

Chart Table
Maturity Fund

Performance

 

Fund Name1 month3 months6 months1 yearSince inception
FIIG Australian Bond Fund1.53%2.78%1.51% 5.91%
Benchmark Return1.48%2.67%1.45% 5.51%
Excess Return0.05%0.12%0.06% 0.40%

Please note: there will be a delay in the release of unit prices of 2-4 business days immediately after each end of month due to the distribution process.

Performance as at 31 July 2024. Total returns are calculated using the sell (exit) price, net of management fees, gross of tax, as if distributions of income have been reinvested at the actual distribution reinvestment price, the actual returns received by an investor will depend on the timing, buy and exit price of individual transactions.

Figures showing a period of less than one year have not been adjusted to show an annual total return.

Return of capital and the performance of your investment in the fund are not guaranteed. Past performance is not a reliable indicator of future performance.

 

Prices

Unit price

DateBuyNavSell
16/08/20241.051.0491.048

 

Download price history

 

Please Note: The FIIG Monthly Income Fund is not priced on any NSW or national public holidays in line with the ASX trading calendar. The unit price for the Fund will also be delayed immediately after a distribution date after each month end for approximately five business days. Investors will receive their correct transaction unit price once these unit prices have been calculated.


Distribution History

Distribution Frequency

The Fund aims to distribute income monthly. The distribution amount payable may fluctuate from month to month.

DateDistribution (Cents/Unit)Cum-Distribution PriceEx-Distribution Price
30 November 20240.4206
1.0094
1.0052
31 October 20240.4190
1.0058   
1.0016

 

Distribution Notice and Timetable – November 2024

Benchmark

Bloomberg AusBond Bank Bill Index

The Bloomberg AusBond Bank Bill Index is engineered to measure the Australian money market by representing a passively managed short-term money market portfolio. This index is comprised of 13 synthetic instruments defined by rates interpolated from the RBA 24-hour cash rate, 1M BBSW, and 3M BBSW.

1 Bloomberg Index Services Limited. BLOOMBERG® is a trademark and service mark of Bloomberg Finance L.P. and its affiliates (collectively “Bloomberg”). Bloomberg or Bloomberg’s licensors own all proprietary rights in the Bloomberg Indices. Bloomberg does not approve or endorse this material or guarantee the accuracy or completeness of any information herein, nor does Bloomberg make any warranty, express or implied, as to the results to be obtained therefrom, and, to the maximum extent allowed by law, Bloomberg shall not have any liability or responsibility for injury or damages arising in connection therewith.

Below are responses to frequently asked questions for the FIIG Monthly Income Fund. If you have any additional questions, please contact us at funds@fiig.com.au or contact your FIIG Relationship Manager.

If your query relates to your access or information available from the registry (including statements) please contact our dedicated team at Boardroom using fiig@boardroomlimited.com.au or call them on 02 8023 5469.

1. How can I invest in the Fund?

Step 1: Investors can invest in the Fund by applying online on the FIIG Monthly Income Fund online application form This form is hosted by Boardroom, the registry provider for the Fund. This application process takes between 5 and 10 minutes, depending on the account type.

Step 2: After submitting your application, transfer your investment funds by BPAY or EFT to the Fund application bank account. You will receive an email from Boardroom that contains these details.

NOTE: This bank account is a trust account managed by the fund registry Boardroom. Accordingly, the account name Boardroom Pty Ltd may appear when you enter the payment details into your online banking.

Step 3: If you have any outstanding application documents such as AML documentation (driver's licence, passport or trust deed), then you will need to provide these before your application can be finalised.

Step 4: Once your funds and any outstanding documentation is received, you will be issued units in the Fund, and Boardroom will send you a welcome email including a holdings statement confirming your investment. The daily cut-off is 2pm (AEDT) and funds received after this time will receive the next unit price.

Please note that applications received prior to 1 October 2024 will not be invested and receive units in the Fund until 1 October 2024 per the Product Disclosure Statement. 


2. Who can invest in the Fund?

The Fund is open to retail and wholesale investors with a minimum balance of $10,000 to invest.


3. Who is Boardroom?

Boardroom is the Unit Registry for the Fund and keeps a record of investors' investments in the Fund. They maintain records of investors' units held, TFNs (if provided), bank account details and details of distribution reinvestment plan participation. Boardroom is also responsible for performing services such as application and redemption processing, distribution payments and providing statements associated with these transactions.


4. How can I view my investment online?

Boardroom provides an investor portal called Investorserve to allow investors access to view the value of their investment and to view their statements.

Your welcome letter provides tailored instructions on how to register for an InvestorServe account.

Please refer to a generic version of these instructions below:

IssuerFIIG Securities Limited
Holding TypeUnit Trust
Reference NumberThis is your unit holding number, starting with a 'U'. This number was included in your first holding statement.
NameThe registered account name. This will depend on the entity in which you created your account. For example, it will be the trustee name if your account is a SMSF or trust. You can also find this in your first holding statement.
PostcodeThis will need to match the postcode we have recorded on your account.
CountryLeave this blank as the system will recognise Australia as the default Country when a postcode is entered.

 

Existing FIIG clients with a MYFIIG login can also view their investment balance through the MYFIIG client portal.


5. How is the Fund structured and how does it operate?

The Fund is structured as a managed investment scheme (MIS). As an investor in this scheme, you buy units in the scheme based on the amount you invest and the unit price on the day you invest. The value of each unit in the Fund and correspondingly the value of an investor's investment is determined daily considering the performance of the underlying assets of the Fund less the Fund management fee.

Some of the benefits of investing in a managed investment scheme (MIS) include:

  • diversification of assets;
  • professional management of the MIS; and
  • access to investment opportunities that may not be available to individual investors.

This list is not exhaustive and you should consider the appropriateness of the product with regard to your objectives, financial situation and needs. Before acquiring the product you should obtain the Product Disclosure Statement and consider the offer statement before making any decision about whether to acquire the product. You should consider seeking advice from an authorised financial adviser before making an investment decision.


6. How much does it cost to invest in the Fund?

The Fund charges an annual investment management fee of 0.50% p.a. (inclusive of GST).

There are no application or exit fees charged by the Fund. However, there is a transaction fee known as a buy/sell spread, which amounts to 0.05% when entering and 0.10% when exiting the Fund. It is important to note that the buy/sell spread is not a fee paid to the Fund but will affect your investment return and is reflected in the application (buy) and redemption (sell) unit prices.

The purpose of this transaction fee is to cover trading expenses such as brokerage fees when investments are bought or sold in the Fund related to applications or redemptions. These fees ensure that only the investors buying or selling units incur the expenses associated with buying or selling any assets at a Fund Level.


7. How do distributions for the Fund work?

What are distributions?

The FIIG Monthly Income Fund makes regular payments to unitholders in the form of monthly distributions. These distributions typically consist of primarily income from interest (generated from cash or bonds) and realised capital gains from the sale of assets held by the Fund.

 

How much do I receive?

The income you receive is based on the number of units you hold at the end of the distribution period, regardless of how long you have held those units. Every unit in the Fund receives the same rate of distribution. This rate of distribution is published as a cents per unit distribution rate. The total distribution you receive is calculated by multiplying the cents per unit distribution rate by the number of units held at the end of the distribution period. 

 

How often are distributions paid?

The Fund pays distributions on a monthly basis provided there is distributable income available. Distribution payments occur approximately two weeks after a distribution date.


How can my distributions be paid to me? 

Unitholders can elect to receive the distribution in the form of cash (paid to their nominated bank account) or reinvestment, which is the purchase of additional units in the fund. 

 

Investors in the Fund can choose to have their income paid to an Australian bank account held in the name of the account holder or to have this distribution reinvested into the Fund to purchase additional units. Investors may elect to have income distributed on the initial fund application form. However, this preference can be changed up to 7 days before a distribution date.

Why is the unit price lower after the distribution?

The income and any realised capital gains that the Fund earns are reflected in the unit price; this increases the unit price over time. When a distribution is paid, this income and realised capital gains are paid to investors, and the unit price will fall by approximately the same amount as the distribution.

 

For example, if a fund has a unit price of $1 on 30 June and the fund declares a distribution of $0.04 per unit (4 cents per unit), unitholders invested as at 30 June will be entitled to receive the $0.04 per unit distribution. Consequently, the unit price of the fund will fall to $0.96 to account for the $0.04 per unit distribution.

 

How can my distributions be paid to me?

Unitholders can elect to receive the distribution in the form of cash (paid to their nominated bank account) or reinvestment, which is the purchase of additional units in the fund.

Why is my distribution different from one period to the next?

The payment cycles of the underlying securities in which a fixed-income fund invests, the overall performance of the fixed-income market, the composition of the fund's holdings, and the fund's expenses can all affect distribution payments from one period to the next.

 

How do I know when my Fund has paid a distribution?

At the end of each distribution period, you’ll receive a distribution statement for the Fund outlining the details and amount of the distribution you received. This statement will also notify you how we have paid this distribution based on your chosen payment method. 

 

When can I expect to receive my annual tax statement?

For each financial year, you’ll receive an Annual Tax Statement. The timing of dispatch of this document will be made available in mid-June each year and will be available on the Fund website. 



8. How do I withdraw part or all of my investment?

The Fund is open to withdrawals on a daily basis. It is possible to withdraw a portion of your investment, but you must maintain a minimum balance above $5,000. To initiate a withdrawal, simply complete the withdrawal form and send this form to the registry for processing ( fiig@boardroomlimited.com.au). You can find this form in the documents section of the Fund page

Withdrawals will generally be paid to your nominated Bank Account within 5 Business Days.

Please be aware that there will be delays in the processing of withdrawals in the week following a distribution period. These delays will not impact the unit price received for a withdrawal, however they will increase the time in which an investor receives their withdrawal payment.


9. How do I complete tax for my investment in the Fund?

A tax statement is provided in August after the close of each financial year, which has all the information needed to complete your tax return in respect to any income received from the Fund. You will receive a tax statement for each fund you are invested in.

Investors also need to consider Capital Gains Tax (CGT) in periods they have sold or transferred their investments. The calculation of CGT from the sale or transfer of assets in the Fund will need to be calculated by a qualified accountant using information available from the statements you receive from the fund registry.


10. How to set up a Regular Investment Plan?

Setting up an Auto Invest plan is simple and only takes a few minutes by completing the Regular Investment Plan section through the online portal on InvestorServe. Simply navigate to the “Payment Instructions” and then “Savings Plan” section. Then follow the prompts to add or amend your Regular Investment (Savings) Plan.

For new applications there is a Regular Investment Plan section in the online join form to provide the amount and bank account for the Regular Investment Plan.

Can I edit or pause my Regular Investment Plan?

Yes, they can be modified or cancelled through the online InvestorServe portal. 

 

What happens to my Auto Invest on weekends and public holidays?

Direct Debits are processed on the 15th of each month. If this date falls on either a weekend or a public holiday, your Auto Invest transaction will be carried over to the following business day. 

 

What is a Regular Investment Plan? 

A regular investment plan allows you to commence investing in the Fund with as little as $1,000 on a monthly basis. The key advantage is that it removes the need to manually make investments, eliminating the need of organising for additional applications and ensuring you stay committed to your financial goals.

 

 


11. How do I make additional investments into the Fund?

To proceed you will need to complete an additional investment through the online application form. This is a fairly quick and straightforward process, however if you do have any questions please don’t hesitate to FIIG on 1800 01 01 81.

To complete your additional application please visit the online application form.

STEP 1: Beginning the form

Once you have clicked on the “Invest Now” link, please select the “Existing Investor” option, download and review the latest PDS and fill out the below details:

  • Investor Number: U00XXXXX – This will be number that you received in your initial welcome email, or you can find this number on your transaction statements.
  • Postcode: This is your residential postcode recorded on your investment account.

This will then auto populate, and you can proceed with your additional investment.

STEP 2: Electing your payment method and investment amount

In this step please enter in the amount you wish to invest and the method in which you wish to pay.

STEP 3: Making the payment

Once you complete this additional investment – you will receive an email outlining the application summary that includes the below (depending on your payment method).

Step 4: Confirmation

Once received and processed you will receive a transaction statement by email confirming the transaction which shows your total investment balance.