Australia’s first of its type managed portfolio service for bonds has now exceeded $100 million in investments, with a range of individual, institutional and not-for-profits (NFPs) embracing the service for its high level of control, transparency and performance.
FIIG Securities launched the Managed Income Portfolio Service (MIPS) in mid 2015 as a way for investors to retain direct ownership of their bond portfolio and either receive fixed income or reinvest it while delegating the portfolio’s day-to-day management.
FIIG developed four different Investment Programs for MIPS, from which investors can select depending on their requirements for return and tolerance for risk, with the minimum investment starting at $250,000. Customised programs are available for larger investors ($5 million+).
Performance has been a key driver of demand for MIPS with average performance, net of fees, for each of each program for the three months to end of May 2016, outlined below.
|
|
Month ended May 31, 2016 |
Quarterly to May 31, 2016 |
Annualised (quarterly) |
|
Conservative |
Launched May 2016 |
||
|
Core Income |
1.31% |
.88% |
3.54% |
|
Income Plus |
1.11% |
1.48% |
5.90% |
|
Inflation Linked |
0.88% |
0.68% |
2.72% |
Since launching, more than over 50 investors with an average investment of around $1.75 million have utilised MIPS with total investments passing $100 million last week, with the most popular being the ‘Income Plus’ program.
FIIG Head of Institutional Markets John Cummins said the service provided clients with direct access to a well-diversified portfolio of direct bonds combined with professional management and oversight.
“Direct ownership of bonds has many advantages over buying them indirectly through a bond fund,” he said. “MIPS gives you all the benefits of beneficial ownership while delegating the day-to-day running of your portfolio to our fixed income experts.”
“Since launching we have experienced a steady inflow of investments with many investors increasing their programs once they fully understand the benefits,” he said. The success of the service over the last 12 months has gives us confidence there is a strong market for the MIPS and we will continue to grow well into the future.”
Under the MIPS offering investors simply set a mandate and FIIG’s portfolio management team manages the portfolio for them.
Investors through MIPS receive full professional investment management, retain beneficial ownership of their bonds, can choose to receive or reinvest income, and enjoy full transparency, with online access to details of their portfolio such as portfolio performance, valuations and transactions. (cont’d)
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
ENDS: Media enquiries to Ben Ready on 0415 743 838.