Objective

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

Key Features

Investment Objective RBA Cash Rate+3.00% p.a. (after fees)
Benchmark RBA Cash Rate
Inception date 19 September 2016
Management costs 0.77% p.a.
Minimum initial investment A$200,000
Managed Portfolio Immediate upon receipt of income
Max sub-investment grade/non-rated weighting 20%
Cash weighting limits 1.5-100%
Maximum foreign currency exposure 100%
Maximum individual security weighting 25%
Investment Strategy Seeks to invest in a risk-adjusted portfolio of fixed income securities unless stated otherwise.
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Patrick Eng >
Availability Available to wholesale/sophisticated investors only

 

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 securities.
A cost effective fixed income solution that offers real (inflation adjusted) rate of return.
  • Targets regular income distributed as coupons are received. Capital gains (and losses) can also be made.
  • Access high-grade, fixed income securities with 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 weight of the underlying investments in the Managed Portfolio act 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 (19-Sept-2016)

Past performance is not a reliable indicator of future performance.

Portfolio returns are calculated net of management, fees, but excluding any adviser fees from the Managed Portfolio’s inception date of 19 September 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 stock 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 but without independent verification.

Portfolio Breakdown at 30/09/2020


1 month 3 months 6 months 1 year 3 years 5 years Since inception
Portfolio (net)0.45%0.46%-5.23%-3.19%2.67%n/a3.38%
Benchmark0.01%0.03%0.09%0.49%1.14%n/a1.23%
Excess Return0.44%0.43%-5.32%-3.68%1.53%0%2.15%

Past performance is not a reliable indicator of future performance.

Benchmark is RBA Cash Rate. Portfolio returns are calculated net of management, fees, but excluding any adviser fees from the Managed Portfolio’s inception date of 19 September 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 stock 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 but without independent verification.

Yield to call/maturity (p.a)(%) 3.39%
Term to call/maturity(yrs) 3.6 yrs

Past performance is not a reliable indicator of future performance.

  • Portfolio Composition

    • 15%
      Senior Unsecured
    • 9.7%
      Inflation Linked
    • 36.4%
      Subordinated
    • 25.6%
      Hybrid
    • 6%
      Term Loan
    • 7.3%
      Cash
  • Geographical Exposure

    • 84.39%
      Australia
    • 5.92%
      France
    • 7.5%
      United Kingdom
    • 2.19%
      Japan
  • Sector

    • 6.4%
      Technology
    • 10.47%
      Infrastructure
    • 78.15%
      Financial
    • 2.36%
      Communications
    • 2.55%
      Consumer, Cyclical
  • Rate type

    • 31.01%
      Fixed
    • 58.52%
      Floating
    • 10.47%
      Inflation Linked
  • Credit Rating of Securities held

    • 36.71%
      BBB+
    • 10.7%
      BBB
    • 34.81%
      BBB-
    • 6.39%
      BB
    • 8.83%
      B+
    • 2.56%
      Unrated

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.