Objective
The Mason Stevens Australian Fixed Income Managed Portfolio invests in a portfolio of AUD denominated fixed income securities that aims to achieve high risk adjusted returns, while delivering regular cash-flow streams via income from coupons.
Objective
The Mason Stevens Wholesale Fixed Income Managed Portfolio invests in a portfolio of predominantly AUD denominated fixed income securities that aims to achieve high risk adjusted returns, while delivering regular cash-flow streams via income from coupons.
Targets regular income,
distributed as coupons are
received. Maximising capital
gains is also part of the
strategy.
Access to attractive investment opportunities that are typically reserved for institutions and professional investors.
Direct beneficial ownership of securities.
Flexible solution that allows for the rebalancing of the underlying investment weightings in the
Managed Portfolio, acting as a cushion to changing market conditions.
Targets regular income, distributed as coupons are received. The strategy maximises capital gains, whilst minimising capital losses.
Access high-grade, liquid, fixed income securities with a minimum rating of investment grade or higher at the time of purchase.
Direct beneficial ownership of securities.
Flexible solution that allows for the rebalancing of the underlying investment weightings in the Managed Portfolio, acting as a cushion to changing market conditions.
Features
| Investment objective | Aims to provide a return of RBA Cash + 3% p.a. (after fees) |
|---|---|
| Benchmark | RBA Cash Rate |
| Suggested investment timeframe | 3-5 years + |
| Inception date | Sep 2016 |
| Management fees and cost¹ | 0.77% p.a. |
| Minimum initial investment | AUD 200,000 |
¹ Calculated daily and paid monthly in arrears. This does not include underlying fees and costs of individual investment. For all fees and costs associated with the Managed Portfolio, please refer to the relevant disclosure document.
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 fees and costs¹ | 0.55% p.a. |
| Minimum initial investment | $20,000 |
¹ Calculated daily and paid monthly in arrears. This does not include underlying fees and costs of individual investment. For all fees and costs associated with the Managed Portfolio, please refer to the relevant disclosure document.
Portfolio parameters
| Investment universe | Bonds (corporate, financials, government), Subordinated Debt Securities, Hybrids, Residential Mortgage-Backed Securities (RMBS), Asset Backed Securities (ABS), Floating Rate Notes (FRN) and Cash Deposits. Securities may be listed on an exchange or unlisted. |
|---|---|
| Number of investments | 5 - 25 (subject to Sub-Advisor discretion & market conditions) |
| Cash weighting range | 1.5% - 100% |
| Maximum individual security weighting | 25% |
| Maximum sub-investment grade/non-rated weighting | 20% |
| Foreign currency exposure | 0% - 100% |
Portfolio parameters
| Investment universe | Bonds (corporate, financials, government), Subordinated Debt, Hybrids, Residential Mortgage-Backed Securities (RMBS), Asset Backed Securities (ABS), Floating Rate Notes (FRN), Cash Deposits and term Deposits. Securities may be listed on an exchange or unlisted. |
|---|---|
| Number of investments | 5 - 25 (subject to Sub-Advisor discretion & market conditions) |
| Minimum security rating | BBB-/Baa3 by a reputable rating agency |
| Cash weighting range | 1.5% - 100% |
| Maximum individual security weighting | 25% |
| Maximum Major Australian Bank Additional Tier 1 Hybrid/ Preferred Equity Weighting | 30% |
How are the portfolios managed?
Mason Stevens Asset Management is the Investment Manager and controls the asset allocation decisions.
Security selection is conducted using thorough bottom-up credit research coupled with a strong sense of relative value and timing.
Daily management and observation of market and portfolio exposure.
Quarterly Investment Committee to discuss economic outlook, sector views and risk management.
How are the portfolios managed?
Mason Stevens Asset Management is the Investment Manager and controls the asset allocation decisions.
Security selection is conducted using thorough bottom-up credit research coupled with a strong sense of relative value and timing.
Daily management and observation of market and portfolio exposure.
Quarterly Investment Committee to discuss economic outlook, sector views and risk management.
A solution for investors seeking
A risk managed approach to investment with regular income and capital preservation.
A defensive investment that can provide diversification benefits when complemented with equity strategies.
(inflation adjusted) return.
A better return than can be achieved from term deposits with greater liquidity.
A solution for investors seeking
A risk managed approach to investment with regular income and capital preservation.
A defensive investment that can provide diversification benefits when complemented with equity strategies.
(inflation adjusted) return.
A better return than can be achieved from term deposits with greater liquidity.
-
Predictability
The regular income stream from fixed income investments can provide some predictability and stability to overall returns.
-
Diversification potential
Fixed income performance varies compared to equity and other financial asset markets.
-
Income generator
Fixed income returns can provide a regular flow of income, as cashflows are known in advance of investment.
-
Risk-adjusted return
Investing in credit can provide a repeatable and sustainable source of value in fixed income markets. Historically, investment returns from good quality credit assets have more than compensated investors for the risk of loss.
-
Less volatility
Historically, Australian fixed income exhibits less volatility than domestic equity and REITs.
-
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 relevant disclosure document for a full list of potential risks linked to the portfolio.
-
Predictability
The regular income stream from fixed income investments can provide.
-
Diversification potential
Fixed income performance varies compared to equity and other financial asset markets.
-
Income generator
Fixed income returns can provide a regular flow of income, as cashflows are known in advance of investment.
-
Risk-adjusted return
Investing in credit can provide a repeatable and sustainable source of value in fixed income markets. Historically, investment returns from good quality credit assets have more than compensated investors for the risk of loss.
-
Less volatility
Historically, Australian fixed income exhibits less volatility than domestic equity and REITs.
-
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 relevant disclosure document for a full list of potential risks linked to the portfolio.
Meet the team
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.
