FIIG releases managed account bond service


By Kristen Crawford

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Fixed income broker FIIG Securities has unveiled a first-of-its-kind managed accounts service for bonds for the Australian investment marketplace.

FIIG Securities yesterday said the Managed Income Portfolio Service (MIPS) would allow investors to combine direct bond ownership with the expert oversight of a fund manager and would appeal to all investors, particularly private investors and financial planners.

Not-for-profit clients, such as charities, that wanted to retain control of their fixed income portfolio’s investment strategy, while delegating its day-to-day management, might also be interested in MIPS as a potential investment option, FIIG chief executive Mark Paton said. 

“Direct ownership of bonds has many advantages over buying them indirectly through a bond fund, but until now it was a bit more work, especially for financial planners who were overseeing multiple portfolios,” Paton said.

“This new MIPS service changes all that because the investor just has to set the investment mandate and our experienced fund manager will manage the portfolio for them.

“MIPS would be a game changer for Australian retirees because it would award them access to professional investment management, comprehensive administration and reliable income, while offering superior capital protection to shares through a diversified portfolio of low-risk assets.”        
FIIG has appointed former Dixon Advisory Funds Management head of fixed income Alwyn Hung as the senior portfolio manager of cash and fixed income for MIPS.

MIPS investors could expect to receive full professional investment management, retain beneficial ownership of their bonds, receive regular and timely income, and enjoy full transparency, with online access to details of their portfolio, such as portfolio performance, valuations and transactions, Paton said. 

“The group has established three different investment programs for the service, which investors can select depending on their needs,” he said. 

MIPS is the second innovation brought to the investment space by FIIG this year, following its March launch of an online ordering system for bonds.

“The online ordering system makes buying and selling bonds in the over-the-counter market as simple as updating an online shopping cart,” Paton said. 

“Both new services continue FIIG’s mission of opening up the bond market to Australian investors.”

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