FIIG - The Fixed Income Experts

Bond Portfolios

  • Conservative

    3.52%p.a. Return^

  • Balanced

    4.40%p.a. Return^

  • High Yield

    5.92%p.a. Return^
    8.59% subject to ANZ and WBC being called in 2022*

This portfolio has 10 securities with weightings between 9.5% and 11.2%, yielding 3.52% pa. It is designed for investors wanting a 100% allocation of investment grade bonds. The returns shown are based on ~$500,000 investment. $250,000 is the minimum amount that can be invested with FIIG.

Receive a PDF version of the sample portfolios Download the PDF
Bond types
Security types
Ratings
Sectors
Portfolio breakdown
Holding Issuer Maturity/Call Date Bond Type Structure Ratings Industry Sector Capital Value Capital Price Currency % allocation Yield
40,000 Sydney Airport Nov 2030 CIB Senior Debt IG Infrastructure 55,699 138.75 AUD 11.2% 4.74%
50,000 Macquarie Bank May 2025 FRN Tier 2 IG Regional Bank 50,507 100.73 AUD 10.1% 2.91%
60,000 Plenary Health (Casey) Finance Pty Ltd Sep 2029 IAB Senior Debt IG Infrastructure 49,046 81.74 AUD 9.8% 3.29%
50,000 Pacific National Sep 2029 FCB Senior Debt IG Infrastructure 49,250 97.49 AUD 9.9% 3.68%
50,000 Genworth Jul 2025 FRN Tier 2 IG Insurance 50,000 100.00 AUD 10.0% 4.97%
50,000 Liberty Funding Pty Ltd Nov 2022 FRN Senior Debt IG Property 48,537 97.00 AUD 9.7% 3.85%
50,000 JEM NSW Schools II Pty Ltd Nov 2035 IAB Senior Debt IG Infrastructure 49,066 98.13 AUD 9.8% 3.37%
50,000 Brisbane Airport Dec 2030 FCB Senior Debt IG Infrastructure 51,313 102.60 AUD 10.3% 4.00%
30,000 Queensland Treasury Corporation Mar 2033 FCB Senior Debt IG Semi Government 47,961 157.93 AUD 9.6% 1.33%
50,000 Liberty Financial Pty Ltd Feb 2024 FRN Senior Debt IG Other Financials 47,374 94.50 AUD 9.5% 3.79%

^ Pricing as at 31 July 2020. Subject to change.

Portfolio characteristics

Each bond is selected to ensure the overall portfolio:

Preservation

Is designed to preserve
your capital

Cash flow

Generates ongoing
cash flow

Diversity and balance

Provides diversity
and balance

We combine fixed, floating and inflation linked securities and ensure all the bonds in the portfolio are investment grade securities.

  • Fixed Rate Bonds pay the same coupon amount throughout the life of the bonds, allowing you to predict cash flow.
  • Floating Rate Bonds move with the market interest rate and increase your return when rates rise.
  • Inflation Linked Bonds allow you to protect against rising inflation.

An allocation to senior debt securities means your investment is prioritised above shareholders for repayment. This protects your investment in the event of a problem with one of the issuers, because legally if the company goes into liquidation, any available funds will be repaid to senior investors before equity investors.

This portfolio has 15 securities with weightings between 3.8% and 11.9%, yielding 4.40% pa. It is designed for investors wanting a balanced allocation of investment grade and sub investment grade bonds. The returns shown are based on a ~$600,000 investment. $250,000 is the minimum amount that can be invested with FIIG.

Receive a PDF version of the sample portfolios Download the PDF
Bond types
Security types
Ratings
Sectors
What makes up the portfolio
Holding Issuer Maturity / Call Date Product Type Structure Ratings Industry Sector Capital Value Cost Price Currency % allocation Yield to maturity
50,000 Sydney Airport Nov 2030 CIB Senior Debt IG Infrastructure 71,697 142.50 AUD 11.9% 4.47%
50,000 Genworth Jul 2025 FRN Tier 2 IG Insurance 50,306 100.15 AUD 8.3% 4.86%
50,000 Macquarie Bank May 2025 FRN Tier 2 IG Regional Bank 51,430 102.29 AUD 8.5% 2.50%
50,000 Pacific National Sep 2029 FCB Senior Debt IG Infrastructure 50,223 99.10 AUD 8.3% 3.47%
50,000 Liberty Funding Pty Ltd Nov 2022 FRN Senior Debt IG Property 48,548 97.00 AUD 8.0% 3.85%
50,000 JEM NSW Schools Nov 2035 IAB Senior Debt IG Infrastructure 49,151 98.30 AUD 8.1% 3.35%
50,000 Brisbane Airport Dec 2030 FCB Senior Debt IG Infrastructure 51,872 103.30 AUD 8.6% 3.85%
50,000 Liberty Finance Feb 2024 FRN Senior Debt IG Other Financials 46,863 93.25 AUD 7.7% 4.16%
50,000 Plenary Health (Casey) Finance Pty Ltd Sep 2029 IAB Senior Debt IG Infrastructure 41,080 82.16 AUD 6.8% 3.20%
25,000 ZIP Money May 2021 FRN SubDebt NR Other Financials 24,334 96.90 AUD 4.0% 8.80%
25,000 Sunland Oct 2024 FCB Senior Debt NR Property 23,021 92.00 AUD 3.8% 7.95%
25,000 SCT Logistics Jun 2024 FCB Senior Debt NR Other Corporate 24,528 97.00 AUD 4.1% 6.87%
25,000 Omni Bridgeway Limited Jan 2026 FCB Senior Debt NR Other Financials 24,232 96.50 AUD 4.0% 6.00%
25,000 AMP Bank Nov 2023 FRN Tier 2 Sub IG Regional Bank 24,058 95.59 AUD 4.0% 3.90%
25,000 Ford Dec 2024 FCB Senior Debt Sub IG Automotive 23,638 93.92 AUD 3.9% 4.81%

^ Pricing as at 31 July 2020. Subject to change.

Portfolio characteristics

Each bond is selected to ensure the overall portfolio:

Preservation

Is designed to preserve
your capital

Cash flow

Generates ongoing
cash flow

Diversity and balance

Provides diversity
and balance

We combine a mix of investment grade and sub investment grade bonds to generate the return, in conjunction with differing security types

  • Fixed Rate Bonds pay the same coupon amount throughout the life of the bonds, allowing you to predict cash flow.
  • Floating Rate Bonds move with the market interest rate and increase your return when rates rise.
  • Inflation Linked Bonds allow you to protect against rising inflation.

An allocation to senior debt securities means your investment is prioritised above shareholders for repayment. This protects your investment in the event of a problem with one of the issuers, because legally if the company goes into liquidation, any available funds will be repaid to senior investors before equity investors.

This portfolio has 18 securities with weightings between 5.0% and 6.6%, yielding 5.92% pa*. It is designed for investors seeking a higher return and who are comfortable with a corresponding increase in credit risk. The returns shown are based on a ~$500,000 investment. $250,000 is the minimum amount that can be invested with FIIG.

Receive a PDF version of the sample portfolios Download the PDF
Bond types
Security types
Ratings
Sectors

* The ANZ and WBC securities are pre-Basel 3 legacy subordinated bonds, and are perpetual (have no maturity). They cease to contribute to the bank’s regulatory capital from January 2022 and as such may be called after that date. If this occurs at par (100) then the yield to the call is significantly higher than the yield shown in the portfolio which assumes no call.

What makes up the portfolio
 
Holding Security Description Maturity / Call Date Product Type Structure Ratings Industry Sector Capital Value Capital price Currency % allocation Yield
25,000 Plenary Bond Finance Unit Trust May 2024 FCB Senior Debt NR Infrastructure 26,146 104.59 AUD 5.5% 5.27%
25,000 Maurice Blackburn Aug 2022 FCB Senior Debt NR Other Corporate 26,308 105.23 AUD 5.5% 5.45%
25,000 StockCo Oct 2021 FCB SubDebt NR Other Financials 25,844 103.38 AUD 5.4% 5.74%
25,000 Centuria Apr 2021 FCB Senior Debt NR Property 25,882 103.53 AUD 5.4% 4.81%
25,000 Omni Bridgeway Limited Jan 2026 FCB Senior Debt NR Other Financials 24,832 99.33 AUD 5.2% 5.89%
25,000 SCT Logistics Jun 2024 FCB Senior Debt NR Other Corporate 25,066 100.26 AUD 5.3% 6.75%
25,000 ZipMoney May 2021 FRN SubDebt NR Other Financials 24,646 98.58 AUD 5.2% 8.67%
25,000 Moneytech Apr 2022 FRN SubDebt NR Other Financials 24,470 97.88 AUD 5.2% 7.95%
25,000 WorkPac July 2022 FRN SubDebt NR Other Financials 24,482 97.93 AUD 5.2% 6.65%
25,000 Elanor Oct 2022 FCB Senior Debt NR Property 25,033 100.13 AUD 5.3% 8.10%
25,000 Sunland Oct 2024 FCB Senior Debt NR Property 23,571 94.28 AUD 5.0% 7.82%
25,000 Ford Dec 2024 FCB Senior Debt Sub IG Automotive 24,170 96.68 AUD 5.1% 4.70%
30,000 Westpac Banking Corporation Perpetual FRN Tier 2 IG Major Bank 31,501 75.08 USD 6.6% 1.54%
30,000 ANZ Bank Perpetual FRN Tier 2 IG Major Bank 31,225 74.42 USD 6.6% 1.56%
20,000 Emeco Mar 2022 FCB Senior Debt Sub IG Resources 29,050 103.85 USD 6.1% 6.55%
20,000 Nufarm Apr 2026 FCB Senior Debt Sub IG Other Corporate 28,937 103.45 USD 6.1% 5.35%
20,000 Hunt Feb 2026 FCB Senior Debt Sub IG Property 28,024 100.18 USD 5.9% 6.86%
20,000 Geo Group Apr 2023 FCB Senior Debt Sub IG Other Corporate 25,791 92.20 USD 5.4% 9.25%

^ Pricing as at 31 July 2020. Subject to change.

Portfolio characteristics

Each bond is selected to ensure the overall portfolio:

Preservation

Is designed to preserve
your capital

Cash flow

Generates ongoing
cash flow

Diversity and balance

Provides diversity
and balance

We combine a mix of investment grade and sub investment grade bonds to generate the return, in conjunction with differing security types

  • Fixed Rate Bonds pay the same coupon amount throughout the life of the bonds, allowing you to predict cash flow.
  • Floating Rate Bonds move with the market interest rate and increase your return when rates rise.
  • Inflation Linked Bonds allow you to protect against rising inflation.

An allocation to senior debt securities means your investment is prioritised above shareholders for repayment. This protects your investment in the event of a problem with one of the issuers, because legally if the company goes into liquidation, any available funds will be repaid to senior investors before equity investors.

Find out how bonds can help generate predictable income

Get a free consultation

* Return is yield to maturity. Subject to change and before fees. Please see our FSG for any applicable fees.
† Weighted average life for maturity.

Copyright The contents of this document are copyright. Other than under the Copyright Act 1968 (Cth), no part of it may be reproduced or distributed to a third party without FIIG’s prior written permission other than to the recipient’s accountants, tax advisors and lawyers for the purpose of the recipient obtaining advice prior to making any investment decision. FIIG asserts all of its intellectual property rights in relation to this document and reserves its rights to prosecute for breaches of those rights.

Disclaimer Certain statements contained in the information may be statements of future expectations and other forward-looking statements. These statements involve subjective judgement and analysis and may be based on third party sources and are subject to significant known and unknown uncertainties, risks and contingencies outside the control of the company which may cause actual results to vary materially from those expressed or implied by these forward looking statements. Forward-looking statements contained in the information regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. You should not place undue reliance on forward-looking statements, which speak only as of the date of this report. Opinions expressed are present opinions only and are subject to change without further notice.

No representation or warranty is given as to the accuracy or completeness of the information contained herein. There is no obligation to update, modify or amend the information or to otherwise notify the recipient if information, opinion, projection, forward-looking statement, forecast or estimate set forth herein, changes or subsequently becomes inaccurate.

FIIG shall not have any liability, contingent or otherwise, to any user of the information or to third parties, or any responsibility whatsoever, for the correctness, quality, accuracy, timeliness, pricing, reliability, performance or completeness of the information. In no event will FIIG be liable for any special, indirect, incidental or consequential damages which may be incurred or experienced on account of the user using information even if it has been advised of the possibility of such damages.

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. FIIG’s AFS Licence does not authorise it to give personal advice. 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.

The FIIG research analyst certifies that any views expressed in this document accurately reflect their views about the companies and financial products referred to in this document and that their remuneration is not directly or indirectly related to the views of the research analyst. This document is not available for distribution outside Australia and New Zealand and may not be passed on to any third party without the prior written consent of FIIG. FIIG, its directors and employees.

Copyright © 2020 FIIG Securities Limited | ABN 68 085 661 632 | AFSL No 224659 | Financial Services GuideSitemap | About us
FIIG provides general financial product advice only.  For a copy of our disclaimer please refer to fiig.com.au/disclaimer
Please be aware that Corporate Bonds have a greater risk of loss of some or all of your capital when compared to bank deposits.