Managed Income Portfolio Service (MIPS)

Investing with MIPS provides the following benefits:

• Professional fixed income portfolio management by industry experts.
• Choice of three Investment Programs or a customised Investment Mandate for investments over $5 million.
• Maximum diversification through the use of FIIG’s Direct Bonds service, independent of your investment volume and the Investment Program chosen.
• Direct beneficial ownership of the portfolio of fixed income securities via your own custody account.
• Cut down on administration as FIIG administers any notices and corporate actions related to your investments.
• Simple, single all-in fee structure.

The Managed Income Portfolio Service provides investors access to a menu of products that combine the benefits of total return, capital stability and regular income with direct ownership and professional management. The minimum investment amount for MIPS is $500,000 for each investment program, or $5M for a Customised Investment Program.

Once you have chosen an Investment Program, the MIPS Portfolio Management Team (PMT) will invest in fixed income assets according to the program’s mandate and replicate its model portfolio. The MIPS PMT will rebalance your holdings in response to changes in markets and investment opportunities.

As a MIPS client, you receive:

• Regular income payments (coupons) either reinvested or paid into your nominated account. 
• The opportunity to subscribe to multiple Investment Programs.
• The option to transfer approved assets ‘in-specie’ into your MIPS account.
• Full transparency, with 24/7 online access to your portfolio’s performance, valuations, transactions and income.
• Monthly and annual statements of portfolio accounts, and a quarterly economic and fixed income market commentary from the MIPS PMT.
• Invitation to regular presentations by the MIPS PMT in each state office.
• Custodial services.
• Compliance monitoring, supervisory oversight and independent audit by KPMG.

Conservative managers seeking material uplift in yield and enhanced liquidity over at-call cash and Term Deposits can invest in 4 alternative Australian Bank Bond FRN programs for investments greater than $5,000,000.

MIPS investors can match their risk tolerance and return requirements with a choice of three AUD corporate bond programs for minimum investments of $500,000.

• Direct ownership of securities
• Professional management by an experienced team
• Yield uplift and enhanced liquidity versus at-call cash and term deposits
• Investment grade and non-investment grade options
• Unparalleled portfolio diversity to access bonds in smaller parcel sizes down to $10,000
• Customisation
• Full transparency via online access to your portfolio
• Governance provided by three tiers of oversight

Maximise Portfolio Diversity:

Lower concentration risk by investing in a wide range of corporations with un-correlated business models.

Invest in Issuers with Strong Credit Metrics:

Invest only in those corporations whose business models exhibit capacity to meet their debt servicing obligations.

Absolute and Relative Value Focus:

Deriving the highest yielding return for the minimum level of credit exposure.

Provide clients with the flexibility to adjust risk and credit parameters by including variations of the corporate bond and liquidity programs or any other assets from the Australian dollar denominated fixed income universe.

Clients have complete flexibility to adjust risk exposure parameters for investments greater than $5,000,000. Each Investment Program is documented in detail in the MIPS Information Memorandum available on the FIIG website or upon request.

MIPS offers the ability to create a bespoke fixed income portfolio based on your key investment objectives including liquidity, credit, duration, diversification and Ethical, Social Governance parameters (ESG).

FIIG Securities Limited (‘FIIG’) provides general financial product advice only. As a result, this document, and any information or advice, has been provided by FIIG without considering one or more of your objectives, financial situation and needs. 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, make 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 employees 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 and needs, prior to making any investment decision. FIIG does not provide tax advice and is not a registered tax agent or tax or financial advisor, nor are any of FIIG’s employees or authorised representatives. 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, bonds or securities should not be compared to a bank deposit. Notes,  bonds and securities 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 in 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 (unless otherwise specified), 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 may quote to you an estimated yield when you purchase a bond. This yield may be calculated by FIIG on either A) a yield to maturity date basis; or B) a yield to early redemption date basis. Some bond issuances include multiple early redemption dates and prices, therefore the realised yield earned by you on the bond may differ from the yield estimated or quoted by FIIG at the time of your purchase.  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.