PDF - FIIG Securities
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PDF - FIIG Securities
FIIG Conservative Retail Model Portfolio 02 April 2015 The FIIG Conservative Retail Model Portfolio is an example of how a diversified bond portfolio can provide Retail investors with strong cashflows and superior returns. This provides Retail investors with the ability to invest in direct fixed income from $50,000. Key metrics/statistics Portfolio Return Statistics Capital Structure Exposure Yield To Maturity 3.68% Senior Debt 82% Running Yield 4.72% Subordinated Debt 18% Portfolio holdings Sector Allocation Coupon Type Maturity/ Call Date Running Yield Gross YTM Price National Wealth Management Holding Ltd Wealth Management 20% Floating 16/06/2016* 2.97% 3.28% 99.188 DBCT Finance Pty Ltd (Dalrymple Bay Coal Terminal) Coal Infrastructure 20% Fixed 09/06/2016 6.05% 3.29% 103.363 Downer Group Finance Pty Ltd Infrastructure 20% Fixed 29/11/2018 5.34% 3.49 % 107.642 Southern Cross Airports Corporation Pty Ltd (Sydney Airport) Transport 20% Inflation Linked (CIB)^ 20/11/2020 3.48% 4.70% 144.089 JEM (Southbank) Pty Ltd Government Infrastructure 20% Fixed 28/06/2018* 6.05% 3.25% 110.268 Issuer *Callable: calculations assume called at first opportunity ^Yield for inflation linked bonds (ILB) equals real yield plus a current inflation assumption of 2.5%. Capital indexed bonds (CIB) running yield quoted as a commencing value, given current indexation, but will accrete up with inflation Bonds may be changed subject to supply – see substitute list below To view the selection criteria for the model portfolio visit https://www.fiig.com.au/docs/modelportfolios/conservativer Key highlights 1. An approach that protects capital, the Conservative Retail Portfolio provides regular and reliable income; ensuring investors can have peace of mind. # 2. The Conservative Retail Portfolio provides superior returns when compared to term deposits, with a yield to maturity of 3.68% plus the added benefit of liquidity. 3. With a mix of fixed, floating and inflation linked cashflows; the Conservative Portfolio has been selected to perform in any environment and provides significant protection against inflation. © 2015 FIIG Securities Limited | ABN 68 085 661 632 | AFS Licence No. 224659 www.fiig.com.au | 1800 01 01 81 Issuer Commentary National Wealth Management Holdings Ltd National Wealth Management Holding (NWMH) is a wholly owned subsidiary of National Australia Bank (NAB). It is effectively a holding company for the bank’s wealth management arm, MLC. NWMH has a very strong position in the Australian wealth management and life insurance industries. Following recent acquisitions, Aviva and JBWere, the group cemented its position in the sector with leading market share in the investment, super and individual risk sectors. DBCT Finance Pty Ltd (Dalrymple Bay Coal Terminal) Dalrymple Bay Coal Terminal is currently the third-largest bulk export-coal terminal in the world, critical to the coal supply chain in Queensland’s Bowen Basin region. Predictable and stable cash flow through take-or-pay contracts with well-established coal companies. Current regulatory decision covers the 2016 maturing bonds. Recent refinancing adds confidence that this issuer enjoys the favour of investors. Downer Group Finance Pty Ltd Downer EDI Limited (Downer) is an ASX listed engineering and services firm providing engineering solutions across a number of sectors to clients throughout the Asia-Pacific region. Southern Cross Airport Corporation Pty Ltd (Sydney Airport) Sydney Airport is a very solid infrastructure asset. With Macquarie no longer the driver of the model, it has seen some finance restructuring towards a more traditional infrastructure model. Recent refinances show Sydney Airport continues to hold favour with institutional investors. Though doubtful, even if there is a second airport in Sydney by 2030, it is because there are too many flights, which we see as a good thing. JEM (Southbank) Pty Ltd JEM (Southbank) is a wholly owned finance vehicle of Axiom Education Queensland Pty Ltd (Axiom). The AMP majority owned Axiom is the special purpose finance vehicle that operates the Southbank Education and Training Precinct for the State Government of Queensland under a private public partnership. The contract continues through to 2039 at which time the facilities will revert back to State control. #The subordinated debt securities are priced assuming they will be called at first opportunity. While this is expected, there is potential for these securities not be called and maturity extended by up to ten years in the case of the subordinated debt. If not called, the price of those securities would likely fall along with the forecast running yield and yield to maturity percentages. Key portfolio characteristics About FIIG 1. A diversified portfolio with a high weighting to strong, local companies reducing “international” risk. # 2. Solid return with a yield to maturity 3.68%. 3. Regular and reliable cashflows with a mix of fixed rate, floating rate and inflation linked interest payments. 4. Majority of the portfolio is made up of senior/senior secured bonds, placed high in the capital structure (senior debt accounts for 60% of the portfolio). 5. Available to retail investors with no ongoing fees or charges. FIIG Securities are fixed income experts, providing investors with a single focus on fixed interest investments. FIIG provide individuals and their advisors with choice and control through innovative services, featuring direct access to a broad range of bonds and deposits. FIIG’s services reach beyond brokering your fixed income trade requirements. Our investor support services include extensive news and research articles produced by our inhouse Research Team, along with investor reporting facilities and online access to a range of tools and services, including portfolio management and Rolling Term Deposits. For further information about FIIG’s services or this model portfolio, contact FIIG’s Intermediary Advisor Team on 1300 752 663. FIIG Securities Limited (‘FIIG’) provides general financial product advice only. As a result, this document, and any information or advice, has been provided by FIIG without taking account of your objectives, financial situation and needs. Because of this, you should, before acting on any advice from FIIG, consider the appropriateness of the advice, having regard to your objectives, financial situation and needs. If this document, or any advice, relates to the acquisition, or possible acquisition, of a particular financial product, you should obtain a product disclosure statement relating to the product and consider the statement before making any decision about whether to acquire the product. Neither FIIG, nor any of its directors, authorised representatives, employees, or agents, makes any representation or warranty as to the reliability, accuracy, or completeness, of this document or any advice. Nor do they accept any liability or responsibility arising in any way (including negligence) for errors in, or omissions from, this document or advice. FIIG, its staff and related parties earn fees and revenue from dealing in the securities as principal or otherwise and may have an interest in any securities mentioned in this document. Any reference to credit ratings of companies, entities or financial products must only be relied upon by a ‘wholesale client’ as that term is defined in section 761G of the Corporations Act 2001 (Cth). FIIG strongly recommends that you seek independent accounting, financial, taxation, and legal advice, tailored to your specific objectives, financial situation or needs, prior to making any investment decision. FIIG does not make a market in the securities or products that may be referred to in this document. A copy of FIIG’s current Financial Services Guide is available at www.fiig.com.au/fsg. An investment in notes or corporate bonds should not be compared to a bank deposit. Notes and corporate bonds have a greater risk of loss of some or all of an investor’s capital when compared to bank deposits. Past performance of any product described on any communication from FIIG is not a reliable indication of future performance. Forecasts contained in this document are predictive in character and based on assumptions such as a 2.5% p.a. assumed rate of inflation, foreign exchange rates or forward interest rate curves generally available at the time and no reliance should be placed on the accuracy of any forecast information. The actual results may differ substantially from the forecasts and are subject to change without further notice. FIIG is not licensed to provide foreign exchange hedging or deal in foreign exchange contracts services. The information in this document is strictly confidential. If you are not the intended recipient of the information contained in this document, you may not disclose or use the information in any way. No liability is accepted for any unauthorised use of the information contained in this document. FIIG is the owner of the copyright material in this document unless otherwise specified. © 2015 FIIG Securities Limited | ABN 68 085 661 632 | AFS Licence No. 224659 www.fiig.com.au | 1800 01 01 81
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