Firstmac High Livez – Safe or Not?

Good morning,

I watched your show on Sky Business last night on the alternatives to fixed deposit with interest.

Just wondering if you have heard of Firstmac High Livez which gives much higher returns than bank deposits? It is an authorized trustee investment. How safe is it? My alternative is either investing in Firstmac High Livez or in a bank called Australian Bank which I don’t know exist until I see its branch in a major shopping centre. Your opinion is much appreciated.

 

A: Thanks for the question.

I can’t tell you whether it is safe or not. I can’t predict the future.

What I can say is that while it is higher risk (and that is why it offers a higher return), the Manager has a reasonably strong track record and because the fund invests in residential mortgage backed securities, it is effectively quite well diversified.

As with all investments, I strongly encourage you to read the PDS.

Regards


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