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Kingfisher Trust 2016-1 (ASX:KIG), a securitised mortgage investment trust managed by Institutional Securitisation Services Limited, has published its monthly investor report for the period ending 30 June 2026. Established on 1 December 2016 with a maturity date of 24 November 2048, the trust reported total available income of $1,193,337.01 for the collection period and ongoing principal amortisation across all note classes, reducing the total invested amount from $205,098,130.23 to $201,593,820.79.
Key Highlights
- Kingfisher Trust 2016-1 (KIG) is a multi-class securitised mortgage investment trust with seven note classes ranging from AAA-rated senior tranches to unrated subordinated notes, managed by Institutional Securitisation Services Limited and serviced by ANZ Banking Group Limited.
- The trust generated total available income of $1,193,337.01 during June 2026, primarily from finance charge collections amounting to $1,193,331.28, with minimal interest income on trust accounts.
- Principal invested amounts declined across all note classes, with the closing invested amount at $201,593,820.79, reflecting continued amortisation of the mortgage portfolio.
- All note classes retained their existing ratings: Class A1 and A2 notes rated Aaa(sf), Class B rated Aa1(sf), Class C rated Aa2(sf), Class D rated A1(sf), and Class E rated Baa1(sf), with no charge-offs recorded.
- Interest rates ranged from 5.37% for Class A1 notes to 10.30% for Class F notes, based on the 1M BBSW rate of 4.30% plus applicable margins.
- No liquidity facility or principal draws were required during the period, and no carryover charge-offs from previous periods were recorded.
Kingfisher Trust 2016-1 Structure and Credit Ratings
Kingfisher Trust 2016-1 functions as a securitised mortgage investment trust with a layered multi-class note structure designed to allocate credit risk and returns among investor tranches. Issued on 1 December 2016 and maturing on 24 November 2048, the trust is administered by Institutional Securitisation Services Limited, located at Level 5, 242 Pitt Street, Sydney, with Perpetual Corporate Trust Limited as trustee and P.T. Limited as security trustee. Investor reporting complies with ASX Listing Rule 3.17.
The trust’s note structure includes seven classes: Class A1 and A2 notes rated Aaa(sf) by Moody’s and Fitch, representing the most senior tranches; Class B notes rated Aa1(sf); Class C notes rated Aa2(sf); Class D notes rated A1(sf); Class E notes rated Baa1(sf); and unrated Class F notes. This waterfall structure prioritises senior noteholders for interest and principal payments, while subordinated classes absorb losses sequentially, providing credit enhancement. All notes are denominated in Australian dollars and listed on the ASX under ticker KIG.
June 2026 Income and Finance Charge Collections
The report for the collection period ending 30 June 2026 disclosed total available income of $1,193,337.01, mainly from finance charge collections of $1,193,331.28 on the underlying mortgage portfolio. Interest income on the trust account was minimal at $5.73, with no income from authorised investments, net swap receipts, or other sources. Details regarding net swap positions or derivative counterparty assumptions were not disclosed.
Income allocation followed a cascading waterfall: $1.00 to the participation unitholder; $65,191.23 in senior fees and expenses; $64,200.98 in net swap payments to derivative counterparties; and $842.87 in liquidity facility interest and fees. Interest payments were distributed by class priority: Class A1 notes received $760,055.74; Class A2 $69,787.77; Class B $53,126.57; Class C $16,678.09; Class D $16,323.24; Class E $12,233.98; and Class F $13,923.76. A surplus of $120,971.78 was distributed to the participation unitholder, indicating income exceeded obligations.
Principal Amortisation and Invested Amounts by Note Class
During June 2026, principal invested amounts decreased across all note classes, reflecting amortisation of the residential mortgage portfolio. The total invested amount declined from $205,098,130.23 to $201,593,820.79, a reduction of $3,504,309.44. This amortisation aligns with typical mortgage-backed securitisation repayment flows.
Class A1 notes saw the largest absolute principal reduction, falling from $172,203,813.42 to $169,261,536.72, with the note factor decreasing from 0.09358903 to 0.09198997. Class A2 notes declined from $14,391,263.58 to $14,145,374.26, note factor from 0.20558948 to 0.20207678. Subordinated classes experienced similar proportional reductions: Class B from $9,868,295.06 to $9,699,685.24; Class C from $2,878,252.69 to $2,829,074.82; Class D from $2,467,073.80 to $2,424,921.34; Class E from $1,644,715.85 to $1,616,614.22; and Class F from $1,644,715.83 to $1,616,614.19. The report did not specify prepayment rates or reasons for principal reduction magnitude.
Interest Rate Calculations and 1M BBSW Benchmark Usage
Interest rates for floating-rate notes from 24 June to 24 July 2026 were based on the 1M BBSW benchmark of 4.30%, with margins reflecting each class’s credit risk and subordination. Class A1 and A2 notes had margins of 1.07% and 1.60%, resulting in rates of 5.37% and 5.90% respectively. Class B notes carried a 2.25% margin (6.55%), Class C 2.75% (7.05%), Class D 3.75% (8.05%), Class E 4.75% (9.05%), and Class F 6.00% (10.30%). This tiered margin structure corresponds to credit risk hierarchy. No guidance on future 1M BBSW rates or rate caps/floors was provided.
July 2026 Payment Schedule and Interest Per Certificate
The trust follows a monthly collection and distribution cycle with key dates: determination on 21 July 2026, record on 22 July 2026, and payment on 24 July 2026. The next payment is scheduled for 24 August 2026, assuming no defaults or portfolio deterioration. Dates are business days for Melbourne and Sydney banks.
Interest per certificate was calculated by applying the effective rate to opening invested amounts divided by certificates outstanding. Class A1 notes earned $4.13 per certificate ($760,055.74 total interest), Class A2 $9.97, Class B $11.07, Class C $11.91, Class D $13.60, Class E $15.29, and Class F $17.40 per certificate. Higher interest per certificate in subordinated classes reflects higher rates and lower principal balances.
ANZ’s Role and Trust Administration
Australia and New Zealand Banking Group Limited (ANZ) serves as servicer, liquidity facility provider, bank account provider, and swap facility manager for Kingfisher Trust 2016-1. ANZ collects borrower payments, manages liquidity arrangements, maintains trust accounts, and administers derivative hedges. Institutional Securitisation Services Limited oversees trust administration, investor reporting, and ASX compliance. Neil Boncodin, Manager of Securitisation Trade Services at ANZ Institutional, authorised the update on 24 July 2026. No changes to service providers, fees, or servicer performance metrics were disclosed.
Credit Performance and Charge-off Status
No principal charge-offs occurred during June 2026, and no carryover charge-offs from prior periods exist, indicating stable credit performance of the mortgage pool. All note classes’ closing stated amounts matched closing invested amounts, with no reimbursements required. This suggests borrowers are meeting payment obligations and servicer recovery efforts remain effective.
The absence of charge-offs aligns with a maturing securitisation progressing through orderly amortisation. No losses have impacted senior or subordinated noteholders to date. The report did not provide loan-level data such as loan-to-value ratios, borrower credit scores, geographic concentration, or delinquency rates for further credit insight.
Liquidity and Principal Draw Facilities Remain Unused
The trust holds a liquidity facility with an opening limit of $2,050,981.30 (~1% of opening invested amount) to manage timing mismatches between collections and payments. No draws were made during June 2026, and the closing drawn balance was zero. Interest and fees on the facility totaled $842.87 despite no utilisation, reflecting commitment fees.
Similarly, the principal draw facility had no outstanding draws or repayments during the period. The size and conditions for principal draws were not disclosed. The absence of facility utilisation indicates sufficient finance charge collections to cover all obligations, supporting operational stability.
Derivative Counterparty Payments and Swap Activity
Derivative counterparty obligations are managed via a cascading waterfall with pari passu and rateable allocation. During June 2026, net swap receipts were zero, but $64,200.98 was paid to derivative counterparties following senior fees and expenses but prior to noteholder interest distributions.
The waterfall ensures derivative payments are prioritised to protect senior interest payments. The report did not disclose swap notional amounts, tenors, counterparty identities, or economic rationale. Zero net swap receipts suggest swaps are either in net deficit or currently inactive.
Long-Term Maturity and Investment Outlook
Issued on 1 December 2016 with maturity on 24 November 2048, Kingfisher Trust 2016-1 spans 32 years, with approximately 22 years remaining as of July 2026. The trust is in the latter stages of amortisation, with investors receiving distributions over a multi-decade horizon, exposing them to long-term interest rate, refinancing, and economic cycles.
After nine years, the trust’s mortgage portfolio is gradually amortising, with the invested amount declining by about 1.7% annually based on June 2026 data. This trajectory suggests full principal amortisation by maturity, though actual prepayment rates may vary due to market and borrower factors. No expected maturity profiles or redemption schedules for note classes were disclosed.
