FIIG - The Fixed Income Experts

Care Sector Case Studies

Maximising yield and control in a changing marketplace.

A national aged care chain is coming to grips with volatility resulting from changes in the Aged Care Funding Instrument subsidies and fewer new clients lodging Refundable Accommodation Deposits.  The blend of public and private funding sources is moving the market towards a consumer driven, home care model while the funding growth is dropping from 6% to 3.5% from 2018-2019.

Using FIIG’s Money Market Services the chain is able to maximise yield and ensure cash is fully invested using the Money Market Optimiser Service which uses a blend of at-call and Term Deposit products to meet operational cash flow requirements while maximising return for deposits. Through continuous optimisation of cash investment the client would reduce the amount of idle cash and the drag on overall investment returns.


A direct approach for individual RADS

A 150 bed aged care facility needs to match Refundable Accommodation Deposit requirements to individual bonds to accommodate an unpredictable investment horizon with available liquidity to service redemptions. The Aged Care provider has a policy that stipulates non-pooled investment. Further the facility may in time seek to diversify funding sources if expansion capital is required.

Using FIIG’s DirectBond Service the provider can select individual investments that can be matched to deposits and be sold on the substantial secondary market to fund redemptions and top up the liquidity pool as required. In time the facility may speak with FIIG’s Debt Capital Markets team to discuss access to a diverse pool of non-bank investors seeking opportunity in the Australian Corporate Bond market.

Maintaining large sum liquidity without yield sacrifice

A regional chain of aged care facilities with 600 beds needs a conservative managed investment for their reserve cash. They need for this reserve to remain liquid should unforeseeable events require them to rebalance their operating capital.

The client could request MIPS Portfolio Investment Team build a bespoke Bank Bond Portfolio favouring banking institutions within their ratings tolerance. The investment would remain liquid and could accommodate in and out flows while the client would retain direct ownership of the underlying assets.

FIIG’s Corporate Case studies are illustrative examples of how FIIG clients can benefit from our products and services.  Any resemblance to any actual FIIG client is unintended.  Please be aware that Corporate Bonds have a greater risk of loss of some or all of your capital when compared to bank deposits.

Talk to an expert

Mark Connors - State Manager Bianca Burt - Associate Director, Money Market Sales d.bruce Marcus Blake - Director - Distribution, Managed Portfolios  

Phone Call us on 1800 01 01 82

...with offices based in Sydney, Brisbane, Melbourne and Perth

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