Solactive AG has partnered with FIIG to launch Australia's first domestic sub-investment grade bond index.
The Solactive FIIG Australian High Yield and Non-Rated Bond TR index is the first index to cover high yield and non-rated bonds in Australia and allows investors to assess the performance of the AUD high yield bond market.
Its first-of-its-kind design provides individual and corporate investors, and financial advisers a solid foundation to make prudent investment decisions while functioning as a leading benchmark for AUD-denominated high yield bonds.
The index, which launched on 1 August 2019 with data starting as far back as 2012, was developed as a joint collaboration between the German Index provider Solactive and Australia's FIIG Securities (FIIG). It is engineered to mirror the performance of the AUD-denominated Australian corporate bonds rated high yield or not rated universe.
Since inception in December 2012, the Solactive FIIG Australian High Yield and Non-Rated Bond TR index have generated a cumulative return of 58.2% to 31 July 2019 or a compound annual return of 7.20% over the same period.
Currently, the index contains 49 bonds issued by 36 issuers. NextDC, Downer, Crown Resorts, Australian Unity and Virgin are the top 5 issuers by outstanding volume and make up 58% of the index.