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ISCOVER
Staff Reporter
Firstmac’s fixed income fund has been yielding some strong results for the company, generating a total return of 8.36 per cent after fees for the 12 months to 31 March.
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“We are very pleased with the result for Firstmac’s High Livez,” the company’s chief investment officer James Austin said.
“When we launched the product we knew there was a growing demand from retail investors for quality Australian bonds with attractive yields, traditionally only available to institutional investors.
“Our objective in creating the fund was to deliver stable monthly distribution returns. We did this by creating a portfolio of asset-backed securities and short term money market securities.
“With a distribution return of 8.33 per cent after fees over the last 12 months, we believe we have delivered on that objective for our investors.”
Mr Austin said Firstmac’s experience and extensive knowledge of the Australian residential mortgage backed securities (RMBS) market had helped to generate a strong return.
“Our investors are a mix of individuals, trusts, companies and self managed superannuation funds who have a medium term investment horizon and are investing with fund managers with a proven track record,” he said.
“In addition, these investors want to ensure that their portfolios are appropriately weighted across all major asset classes of cash and fixed income, Australian and international equities and property. High Livez has helped investors do this given the fund is invested in cash and fixed income securities.”
