Objective

The principal objective of the Mason Stevens Australian Fixed Income Managed Portfolio (Managed Portfolio) is to invest in a portfolio of AUD denominated securities that aims to achieve high risk adjusted returns, while delivering regular cash-flow streams via income from coupons with minimal capital volatility.

Key Features

Investment Objective Aims to provide a return of RBA Cash + 2% p.a. (after fees)
Benchmark RBA Cash Rate
Suggested investment timeframe 3-5 years+
Inception date 30 March 2016
Management fee 0.55% p.a.
Minimum initial investment $20,000
Distribution Frequency Immediate upon receipt of income
Minimum security rating BBB-/Baa by a reputable rating agency
Minimum cash weighting 1.5%
Maximum cash weighting 100%
Maximum individual security weighting 25%
Meet the Managers Vincent Hua >
Patrick Eng >
Availability Mason Stevens Global Investment Service
Mason Stevens Super

As at 30 October 2020.

A solution for investors seeking:

A lower risk investment with regular income and capital preservation.
A defensive investment that can provide diversification benefits when complemented with equity strategies.
A cost effective fixed income solution that offers real (inflation adjusted) rates of return.
  • Regular income is distributed as coupons are received. Capital gains (and losses) can also be made.
  • Access high-grade, fixed income securities with a minimum rating of investment grade or higher, and a degree of liquidity, from reputable rating agencies at the time of purchase.
  • Beneficial ownership of securities.
  • Flexible solution that allows for the rebalancing of underlying investment weightings in the Managed Portfolio acts as a cushion to changing market conditions.
  • Before you make an investment decision, it is important that you understand the risks that can affect your investment being able to meet its objective or retain value.
  • The risks that may impact the Managed Portfolio include, but are not limited to factors such as, market risk, company or security specific risk, and currency risk.
  • Please refer to the Investment Mandate for a full list of potential risks linked to the portfolio.

Growth of $100,000 since inception (30-Mar-2016)

Past performance is not a reliable indicator of future performance

Benchmark is RBA Cash Rate. Returns are calculated net of management, performance, administration/custody and transaction fees, but excluding any adviser fees from the Managed Portfolio’s inception date of 30 March 2016, and assumes reinvestment of all income (but not franking credits). Returns are based on the theoretical performance of a portfolio which implemented the Managed Portfolio from the inception date based on simplifying assumptions and security weightings. Actual individual returns of each client’s portfolio will differ depending on factors such as date of initial investment, timing of transactions, contributions and withdrawals, fees and any customisations.

Portfolio Breakdown at 30/09/2020


1 month 3 months 6 months 1 year 3 years 5 years Since inception
Portfolio (net)-0.51%1.27%0.25%0.99%3.76%n/a4.61%
Benchmark0.01%0.03%0.09%0.49%1.14%n/a1.28%
Excess Return-0.52%1.24%0.16%0.5%2.62%0%3.33%

 Past performance is not a reliable indicator of future performance.

Benchmark is RBA Cash Rate. Returns are calculated net of management, performance, administration/custody and transaction fees, but excluding any adviser fees from the Managed Portfolio’s inception date of 30 March 2016, and assumes reinvestment of all income (but not franking credits). Returns are based on the theoretical performance of a portfolio which implemented the Managed Portfolio from the inception date based on simplifying assumptions and security weightings. Actual individual returns of each client’s portfolio will differ depending on factors such as date of initial investment, timing of transactions, contributions and withdrawals, fees and any customisations. Each client should also take into account their own taxation situations. All information provided in this report is correct as at the date of this report.

Yield to call/maturity (p.a)(%) 3.56%
Term to call/maturity(yrs) 4.95 yrs

 Past performance is not a reliable indicator of future performance.

  • Portfolio Composition

    • 23.75%
      Senior Unsecured
    • 7.31%
      Annuities
    • 23.5%
      Inflation Linked
    • 20.52%
      Subordinated
    • 22.32%
      Hybrid
    • 2.6%
      Cash
  • Sector

    • 29.74%
      Infrastructure
    • 62.75%
      Financial
    • 7.51%
      Public, Private, Partnership Projects
  • Rate type

    • 22.62%
      Fixed
    • 45.75%
      Floating
    • 31.63%
      Inflation Linked
  • Credit Rating of Securities held

    • 5.65%
      A+
    • 1.86%
      A
    • 7.18%
      A-
    • 38.57%
      BBB+
    • 6.63%
      BBB
    • 40.12%
      BBB-

 Past performance is not a reliable indicator of future performance.

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Disclaimer

This information is provided by Mason Stevens Limited (ACN 141 447 207, AFSL 351578) (Mason Stevens) as the Managed Discretionary Account (MDA) Provider. Content on this page is of a general nature and does not have regard to any individual’s personal objectives, financial situation and needs. Please seek specific advice and obtain a copy of the investment mandate before making a decision in relation to any investment. Information in this Report is provided in good faith. Whilst every effort is made to ensure the information is accurate at the time of sending, Mason Stevens does not make any representation or warranty as to its accuracy, reliability or completeness nor does it undertake to correct any information subsequently found to be inaccurate. Any information contained in this Report is subject to change without prior notice and Mason Stevens is not obliged to update any information. References made to any third party or their data is based on information that Mason Stevens believes to be true and accurate as at the date of this page but without independent verification.

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David Hewett

Managing Director, Private Investments

David joined Mason Stevens in 2011. He works with single and multi-family offices and private high net worth investors. His consultative approach enables his clients to make investment decisions based on insight, trust and intelligence. With more than 25 years’ finance experience, David has held senior executive roles within St George Private Clients, ANZ Private and ANZ Investment Bank. He holds a Masters of Business Banking and Finance and Graduate Diploma in Banking and Finance from Monash University.