Leading fixed income specialist FIIG Securities has launched a Conservative Income Strategy option to its highly successful Managed Income Portfolio Service (MIPS) program, providing investors with simplified access to professional management of investment grade senior and subordinated bonds.

The addition of the conservative option expands the MIPS suite of investment programs to four and gives investors a more diverse range of entry points to the bond universe.

The MIPS suite also includes the Core Income Investment Program that invests solely in senior debt, the Income Plus Investment Program that invests across the credit spectrum and the Inflation Linked Income Investment Program that invests in bonds that are highly correlated to track the rate of inflation over the life of the investment.

Since launching a year ago FIIG’s Managed Income Portfolio Service has achieved over $100 million in funds under management and produced solid returns to investors.

The addition of the new Conservative Income strategy allows investors to take advantage of the professional management of investment grade bonds with a longer dated investment that generates yield from credit and interest rates.

The blend of fixed and floating rate bonds in the Conservative Income Strategy will shift through the interest rate cycle and allow investors to enjoy continuous optimisation of rates along with the benefits of direct bond ownership.

MIPS Investment Program Name One month
(July)
Net Total Return
3 months
(to end July)
Net Total Return
6 months
(to end July)
Net Total Return
Income Plus 0.62% 2.15% 2.86%
Core Income 0.69% 2.45% 2.66%
Inflation Linked Income 2.08% 3.33% 3.48%
Conservative Income 0.41% Program opened June 2016, first subscription July 2016

 

FIIG’s Head of MIPS Kieran Quaine said investors, especially those who are time poor or new to fixed income, had embraced the benefits of direct ownership of bonds through the MIPS program.

“The program provides expert assistance to manage the day to day requirements of a portfolio including tasks like monitoring markets, credit research, bond selection and transacting,” he said.

“The resulting income, control and investment stability of a directly owned investment has been further simplified with administration, reporting and custody all in one place.”

Within the MIPS portfolio investment structure FIIG’s clients receive unparalleled investment program diversity as a result of the company’s unique ability to maximise diversity by buying bonds in smaller parcels sizes down to $10,000 with access to institutional market prices for bonds.

Like all MIPS programs, The Conservative Income Strategy program is extremely transparent to investors with online details of performance, valuations, transactions and income available.

“MIPS philosophy is to preserve investors’ capital and to generate income while maximising diversity, spreading investments across a wider range of companies and business sectors to reduce investors’ credit concentration and lowering portfolio’s risk.

“We invest in strong credits. Our analysis of company credit is the basis of our investment selection, we seek corporations whose business models exceed in their capacity to service debt.”

“We apply independent thinking to our investment selection and keep the best interests of the investor and adherence to their choice of investment strategy at the core of what we do,” he said.

FIIG Securities Limited, which is licensed by the Australian Securities and Investment Commission (ASIC), is Australia’s largest specialist fixed-income provider. FIIG offers investors access to Australia’s widest range of domestic and international corporate bonds through its ground-breaking DirectBonds service.

FIIG has more than $11 billion in term deposits and corporate bonds under advice in its short-term money market and custody business.  The company has offices in Sydney, Melbourne, Brisbane and Perth.

Source: FIIG Securities

What is Cut + Paste? Cut + Paste contains news releases, statements and other information from organisations active in financial planning and related areas. Its aim is to convey that information to you directly from those organisations. Everything published in Cut + Paste has been curated for its relevance and topicality; otherwise, it is predominantly unedited. The views expressed in Cut + Paste do not necessarily reflect those of Professional Planner. To learn more, please click here.
Leave a comment