Fixed income broker FIIG Securities has launched a managed accounts service for bonds, allowing investors to combine direct bond ownership with the expert oversight of a fund manager for the first time.
FIIG CEO Mark Paton said the new Managed Income Portfolio Service or “MIPS”, would appeal to all investors but especially private investors, financial planners and not-for-profits clients such as charities who wanted to retain control of their fixed income portfolio’s investment strategy while delegating its day-to-day management.
“Direct ownership of bonds has many advantages over buying them indirectly through a bond fund but until now it was a bit more work, especially for financial planners who were overseeing multiple portfolios,” Mr Paton said.
“This new MIPS service changes all that, because the investor just has to set the investment mandate and our experienced fund manager will manage the portfolio for them.”
Mr Paton said that MIPS would be a game changer for Australian retirees because it gave them access to professional investment management, comprehensive administration and reliable income while offering superior capital protection to shares through a diversified portfolio of low risk assets.
FIIG has appointed Alwyn Hung, the former Head of Fixed Income at Dixon Advisory Funds Management, to be the Senior Portfolio Manager of Cash & Fixed Income for MIPS.
Investors through MIPS receive full professional investment management, retain beneficial ownership of their bonds, receive regular and timely income, and enjoy full transparency, with online access to details of their portfolio such as portfolio performance, valuations and transactions.
FIIG has established three different Investment Programs for MIPS, which investors can select depending on their needs.
MIPS is the second innovation by FIIG this year, following its March launch of an Australian-first online ordering system for bonds which makes buying and selling bonds in the over-the-counter market as simple as updating an online shopping cart.
Both new services continue FIIG’s mission of opening up the bond market to Australian investors. FIIG took its first steps to open the market in 2010 when it launched its DirectBonds Service which cut the minimum parcel size for corporate bonds from $500,000 to $50,000. In 2013, FIIG cut the minimum parcel again to $10,000.
FIIG Securities Limited, which is licensed by the Australian Securities and Investments Commission (ASIC), is Australia’s largest specialist fixed-income dealer. FIIG now facilitates over $1 billion of corporate Bond transactions per month for individuals and corporate investors.
FIIG has more than $11 billion in term deposits and corporate bonds under advice in its short-term money market, bonds and custody business. The company has offices in Sydney, Melbourne, Brisbane and Perth. For more information about FIIG Securities please visit www.fiig.com.au