Domestic fixed income securities

Perpetual can support domestic fixed income securities issued by:

• Commonwealth government (excluding listed bonds)
• state governments
• corporations domiciled in Australia for taxation purposes, or
• foreign corporations that have a Permanent Establishment in Australia (with an Australian Business Number) for taxation purposes and that pay Australian sourced income.

This may include:

• capital index bonds/Index-linked bonds (e.g. Treasury, corporate bonds)
• zero coupon bonds or discount securities
• fixed rate bonds
• Floating Rate Notes (FRNs)
• treasury notes.

Generally, any fixed income securities that may pay foreign sourced income (such as Kangaroo bonds and Matilda bonds) aren't eligible investments and therefore can't be held.

All DFIs must be approved by Perpetual before any trades will be settled to the platform.

Domestic fixed income securities must be approved and set up on the platform before a trade instruction to settle will be accepted.

To confirm if a DFI security can be held on platform and added to the investment menu, please contact us via the Perpetual Product team.

We’ll let you know if the asset has been previously approved.  

All requests to establish and support new domestic fixed income investments on platform must include:

• DFI ISIN
• DFI SEDOL
• DFI Term Sheet

Approval process

Generally, if the key criteria have been met, Perpetual is able to take custody and administer the security subject to:

• conducting a final due diligence
• validating that automated daily pricing can be obtained (SEDOL required), and
• confirming the Global Custodian will settle transactions for the specific security.

This process can take three to five business days so please take this into account before recommending/trading DFIs.

Once confirmed that the DFI is available on the menu, you or your client will contact the approved broker to place an order directly with them. Offline trades will be entered into Exigo by the broker for settlement.

Domestic fixed income securities are traded off-platform through one of 11 brokers, with settlement facilitated through us via Exigo. The approved brokers are:

• ANZ
• Australian Bond Exchange
• Commonwealth Bank of Australia (CBA)
• Deutsche Bank
• FIIG Securities
• HSBC
• Ord Minnett
• UBS
• NAB
• Westpac
• IAM Capital Markets.

You may be able to nominate another broker if they’re registered through either Austraclear or Euroclear and have an Austraclear/Euroclear code.

You or your client will need to contact the approved broker to place an order directly with them. Offline trades will be entered into Exigo by the broker for settlement.

You’ll then need to complete and submit the DFI securities settlement form and provide the contract note. This form is available at Adviser Tools – search ‘domestic fixed income securities settlement’. 

You can email this form to wrap@perpetual.com.au.

We may charge a transaction fee. All transaction fees are disclosed in the applicable disclosure document. 

You can complete a form for an in-specie transfer into a DFI security. Contact the Perpetual Asset Services team via asset.inbox@perpetual.com.au for a copy of the form and please ensure that the DFI is approved before requesting the transfer.