Income planning often requires navigating complex investment options to generate income while preserving capital. The FIIG Monthly Income Fund delivers a comprehensive solution for pre-retirees and retirees, offering a steady stream of monthly income, reduced risk, and expert management.
A Complete Income Solution
The FIIG Monthly Income Fund offers a convenient and accessible way to generate an ongoing income. By investing in a diversified basket of fixed-income assets, the Fund reduces concentration risk compared to holding individual bonds. With a minimum investment of only $10,000, it's an affordable option for many investors.
Key benefits of the Monthly Income Fund include:
- Steady Income Stream: Receive regular monthly distributions to simplify income generation.
- Reduced Risk and Diversification: A diversified portfolio of fixed-income assets, including Australian and Global floating and fixed-coupon corporate credit and Asset-Backed Securities across a broad investment universe, to lower concentration risk.
- Expertise and Cost-Effectiveness: Benefit from professional management by FIIG's Investment Management Team with over 60 years of combined experience.
- Lower Minimums: a minimum initial investment of 10K with $1K additional investment amounts and 0.50% p.a. management fees.
- Targeting a return of 2% p.a. (after fees) above the Bloomberg AusBond Bank Bill Index.
The FIIG Monthly Income Fund (Fund) adds to the FIIG Australian Bond Fund, launched in October 2023, which is a 100% investment grade AUD bond fund. Devised as an efficient income solution for investors nearing or in retirement, the Monthly Income Fund provides for better budgeting and financial planning with the expertise of FIIG's Investment Management Team to actively manage the portfolio across a broad range of bonds and sectors.
Investment Management
The Fund will be led by FIIG's Investment Management Team with over 60 years of combined experience, and Portfolio Investment Manager, Garreth Innes will lead the investment strategy and active management of the Fund. Garreth has extensive experience in financial markets, including managing significant volumes in global fixed income and multi-asset portfolio manager roles.
Speaking about the Fund launch, Garreth said:
“A large proportion of our client base is seeking regular income that can outpace inflation. However, they have limited time or capacity to actively select and manage the best risk-adjusted opportunities in a very broad and nuanced investment universe, both in Australia and further afield. The FIIG Monthly Income Fund is our solution for existing and new clients to our firm.”
The Fund will be targeting a return of 2% p.a. above the Bloomberg AusBond Bank Bill Index, which equates to 6.33% p.a. as at 16 August 2024.*
Applications Opening September 2, 2024
The FIIG Monthly Income Fund will officially open for applications on September 2, 2024, and will start investing on October 1, 2024, which coincides with the first anniversary of the FIIG Australian Bond Fund. For more information about the Fund, please click here
* The Fund target (2% above cash) equates to a yield of ~6.33% as at 14 August 2024. The Fund is benchmarked against the Bloomberg AusBond Bank Bill Index which is engineered to measure the Australian money market by representing a passively managed short term money market portfolio. This index is comprised of 13 synthetic instruments defined by rates interpolated from the RBA 24-hour cash rate, 1M BBSW, and 3M BBSW. The yield target indicated for the fund is provided as an indicator based on the portfolio composition and does not guarantee actual yield. Buy/sell spreads are based on percentage of transaction value and are subject to change.
Equity Trustees Limited (“Equity Trustees”) (ABN 46 004 031 298), AFSL 240975, is the Responsible Entity for the FIIG Monthly Income Fund ("the Fund"). Equity Trustees is a subsidiary of EQT Holdings Limited (ABN 22 607 797 615), a publicly listed company on the Australian Securities Exchange (ASX: EQT).