Tuesday 13 May 2014 by Guest Contributor At FIIG

Meet the team - Jake Koundakjian

Jake tells us why he moved to Australia, what he loves about being a FIIG bond dealer, and his top bond pick

Director at FIIG Securities 

Jake grew up in Ottawa, Canada, where he rose from a teenage bank teller to a portfolio manager overseeing more than $600 million in assets for the Bank of Nova Scotia. With over fifteen years in asset management he moved to Australia three years ago with his Australian wife Jane and their two young daughters.
Photo of Jake

Why did you move to Australia?

My wife is from Brisbane and we came back to Australia every time we had a child to visit my wife’s family. It was pretty clear that this was where we wanted to raise our children. There’s a lot of cultural and economic similarities between Canada and Australia but the lifestyle here is a lot better, especially in Brisbane. I think it’s a lot healthier. Having my kids being able to play outside all year round instead of being stuck indoors in winter was a big attraction.

What do you miss most about Canada?

Mostly my family and friends. I also miss the Harvey’s flame-grilled Big Harv Burger and Labatt Blue beer. I get my family to bring a few cans across when they visit.

What are your pastimes/hobbies?

The main one is chasing after my two young daughters. I also enjoy fishing and really enjoyed taking them fishing on the Tweed River a couple of months ago. I also play for the Masters Gaelic football team which is for over 35s. Nothing serious, just a bunch of guys getting together.

What attracted you to FIIG?

When I met with (FIIG founder) Jim Stening we got to the nuts and bolts of how this giant asset class was underdeveloped here. I just felt personally that it was unfair for individual investors to miss out. In Canada you can buy bonds from your bank branch. They are low risk assets with safe, stable cash flows. So in North America and pretty much every country around the world it’s different to what’s going on in Australia. It’s like Australia has been left out. I had seven job interviews scheduled when I arrived in Brisbane and the first one was with FIIG. After that first meeting I knew that I wanted to work with FIIG.

What is your favorite part of your job?

Having traded bonds my whole career what attracted me personally was that you don’t have to worry. With stocks you are constantly strapped to your phone or screen watching assets move. It is really quite stressful.

On the bond side you don’t have to worry the whole time. While I’m certainly in touch with everything going on in the markets, I don’t have to be on high alert all the time. I can relax and sleep at night.

Highlight of your time with FIIG?

One proud moment was when we issued the Silver Chef bond. I did a lot of homework and I was quite comfortable. I ended up taking about 20% of the deal outright for clients who’ve done extremely well. They took a leap of faith as it was a pioneering bond issued by FIIG and they got well rewarded for it. I’m glad that a lot of people trusted me with their funds and it panned out quite nicely for them. They entered expecting an 8.5% return, but if they sold now they would be crystalizing a 21% return, which annualises at 12.75%.

Top bond pick?

Sydney Airport inflation-linkers both the 2020s and 2030s. From a risk reward trade-off I honestly believe that every super fund in Australia should have some inflation-linked assets. It just makes so much sense from an overall portfolio perspective as you’re getting a great return with inflation protection. I’d lean towards the 30s right now but both maturities should be cleared for landing in all portfolios!

Jake is in the Brisbane office and can be contacted on 07 3231 6629


The contents of this document are copyright. Other than under the Copyright Act 1968 (Cth), no part of it may be reproduced, distributed or to a third party without FIIG’s prior written permission other than to the recipient’s accountants, tax advisors and lawyers for the purpose of the recipient obtaining advice prior to making any investment decision. FIIG asserts all of its intellectual property rights in relation to this document and reserves its rights to prosecute for breaches of those rights.

The information has been prepared solely for informational purposes only and does not constitute or form part of any offer for sale or subscription of, or solicitations or any offer to buy or subscribe for, or any invitation to subscribe for or purchase any securities and nothing contained herein shall form the basis of any contract or commitment whatsoever. The information is being furnished to you solely for your information and may not be reproduced or redistributed to any other person. No action has been taken to permit the public distribution of the information in any jurisdiction and the information should not be distributed to any person or entity in any jurisdiction where such distribution would be contrary to applicable law.

The information has not been lodged with Australian Securities and Investments Commission or any other authority. The information is intended for distribution only to financial institutions and professional investors whose ordinary business includes the buying or selling of securities in circumstances where disclosure is not required under Chapter 6D.2 or Chapter 7 of the Corporations Act 2001 of Australia (the “Corporations Act”) and only in such other circumstances as may be permitted by applicable law. Any securities that may be offered by the Issuer in, or into, Australia are offered only as an offer that would not require disclosure to investors under Part 6D.2 or 7.9 of the Corporations Act. This information is directed only to persons to whom disclosure is not required under Part 6D.2 or 7.9 of the Corporations Act. The information is a summary only and does not purport to be complete. It does not amount to an express or implied recommendation or a statement of opinion (or a report or either of those things) with respect to any investment in the Issuer nor does it constitute a financial product or financial advice. The information does not take into account the investment objectives, financial situation or needs of any particular investor. FIIG does not provide accounting, tax or legal advice. Prospective investors are required to make their own independent investigation and appraisal of the business and financial condition of the Issuer and the nature of any securities that may be issued by the Issuer. By accepting receipt of the information the recipient will be deemed to represent that they possess, either individually or through their advisers, sufficient investment expertise to understand the risks involved in any purchase or sale of any financial securities discussed herein.

Certain statements contained in the information may be statements of future expectations and other forward-looking statements. These statements involve subjective judgement and analysis and may be based on third party sources and are subject to significant known and unknown uncertainties, risks and contingencies outside the control of the Issuer which may cause actual results to vary materially from those expressed or implied by these forward looking statements. Forward-looking statements contained in the information regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. You should not place undue reliance on forward-looking statements, which speak only as of the date of this report. Opinions expressed are present opinions only and are subject to change without further notice. No representation or warranty is given as to the accuracy or completeness of the information contained herein. There is no obligation to update, modify or amend the information or to otherwise notify the recipient if information, opinion, projection, forward-looking statement, forecast or estimate set forth herein, changes or subsequently becomes inaccurate.

Any offering of any security or other financial instrument that may be related to the subject matter of this communication will be made pursuant to separate and distinct documentation (“Offering Documents”) and in such case the information will be superseded in its entirety by any such Offering Documents in its final form. In addition, because the information is a summary only, it may not contain all material terms and the information in and of itself should not form the basis for any investment decision. Any decision to purchase securities in the context of a proposed offering of securities, if any, should be made solely on the basis of information contained in the Offering Documents published in relation to such an offering.

Neither FIIG nor the Issuer shall have any liability, contingent or otherwise, to any user of the information or to third parties, or any responsibility whatsoever, for the correctness, quality, accuracy, timeliness, pricing, reliability, performance or completeness of the information. In no event will FIIG or the Issuer be liable for any special, indirect, incidental or consequential damages which may be incurred or experienced on account of the user using information even if it has been advised of the possibility of such damages.

FIIG has been engaged by the Issuer to arrange the issue and sale of the Notes by the company and will receive fees from the issuer of the Notes. FIIG, its directors and employees and related parties may have an interest in the company and any securities issued by the company and earn fees or revenue in relation to dealing in those securities.

FIIG provides general financial product advice only. As a result, this document, and any information or advice, has been provided by FIIG without taking account of your objectives, financial situation and needs. FIIG’s AFS Licence does not authorise it to give personal advice. 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, makes 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. 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 or needs, prior to making any investment decision. FIIG does not provide tax advice and is not a registered tax agent or tax (financial) advisor, nor are any of FIIG’s staff 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 or corporate bonds should not be compared to a bank deposit. Notes and corporate bonds 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 on 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, 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 is not licensed to provide foreign exchange hedging or deal in foreign exchange contracts services. 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.

The FIIG research analyst certifies that all of the views expressed in this document accurately reflects their views about the companies and financial products referred to in this document and that their remuneration is not directly or indirectly related to the views of the research analyst. This document is not available for distribution outside Australia and New Zealand and may not be passed on to any third party without the prior written consent of FIIG.