by
Elizabeth Moran | Sep 04, 2013
Since our last Advisor Insight was published, FIIG has identified a list of direct bonds which we have made available for investment from $10,000. This is down from a $50,000 minimum investment per direct bond in the past.
For your clients who have not purchased bonds through FIIG in the past, there is still a requirement to invest a minimum of $50,000 which could consist of five $10,000 bonds, or split in other configurations, for example one $30,000 bond and one $20,000 bond, as long as the minimum $10,000 per investment is satisfied.
One way a client new to FIIG could invest in a portfolio of bonds is via our retail model portfolio. The retail model portfolio only includes bonds which can be purchased by retail investors in denominations of $10,000. View our retail model portfolio here.
If your clients already hold direct bonds, which were purchased through FIIG, they can now reinvest interest earned on their bond portfolio into one of the bonds available for investment from $10,000, rather than leave the funds in a lower return cash account or term deposit.
The availability of these bonds in smaller denominations also provides liquidity to your clients who already own FIIG DirectBonds. For example, if your client owns $50,000 of the Dalrymple Bay Coal Terminal 2016 fixed rate bond and needed some liquidity, you could now sell down the bond in $10,000 parcels instead of selling the complete holding.
Below is a list of all the bonds we have made available for a minimum investment of $10,000. There are 35 bonds in total. A total of 21 bonds are available to both retail and wholesale investors, while there’s an additional 14 bonds available to wholesale investors only (see Table 1).
Notes:
Prices are as at 4 September 2013 in A$ and subject to change. The prices of these securities are provided by FIIG based upon available prices sourced from leading market makers and data services as well as any available market information. Prices are indicative only and there is no guarantee as to their accuracy and may not necessarily represent the market price or a price at which FIIG or any other party will buy or sell the securities.