The new sales and distribution facility is Firstmac’s first outside of Australia, according to Goh, and will handle three lines of the company’s business: managed funds, mortgages, and prime residential mortgage-backed securities (RMBS).
So far it has registered one managed fund, called High Livez, with the Monetary Authority of Singapore.
Goh, whose responsibilities in addition to sales and distribution include overseeing the company’s strategy, marketing, branding and media relations in Singapore, says the office represents an effort on Firstmac’s part to “tap into the Asia high net worth space”.
The High Livez fund, he adds, is aimed at accredited investors, and is a “high-yield income fund” that offers a “good diversification” option for many under-diversified Asian clients.
The fund was launched on 29 March 2011, and its return since that time has averaged 8.26% on an annualised basis.
Prior to joining Firstmac in August, Goh most recently had been managing director of Reyl Singapore, a subsidiary of the Swiss banking Group REYL & Cie.
Founded 30 years ago and based in Brisbane, Firstmac claims to be one of Australia’s top four non-bank lenders.
It does not reveal its annual turnover, but says it employs 160 people, and manages A$5bn ($5.2bn, £3.3bn, £4.1bn) in mortgages and A$150m in cash investments. Over the past decade, it says it has written some 68,500 home loans, and some A$11bn in RMBS.
Firstmac executives are keen to stress that their product is not to be confused with some others in the securitised mortgages sector, noting that the company handles only securitisations of “mortgage insured” prime residential mortgages, and that it “does not deal with construction, property development or industrial lending”.
Mortgage insured loans cover the lender for any post-sale loss incurred in the event of a default, and are a way of enhancing the credit-worthiness of RMBS portfolios.
Goh says Firstmac is looking for permanent office space in Singapore, but for the moment is located at 9 Raffles Place, in the central business district.
