Quantifeed and XTB launch model portfolio for retail investors
Quantifeed and XTB have launched a model portfolio of exchange traded bond units (XTBs) linked to floating rate notes from Australian corporate issuers that will be available to investors in Australia and across Asia.
Fixed income specialist, XTB said that its active cash Australia model portfolio had been developed by Quantifeed to meet a growing demand from investors for a liquid yield alternative to bank deposits.
XTB’s co-founder and chief executive, Richard Murphy, said: “Interest rates in Australia are currently higher than some other markets in the region.
“Institutional investors have been able to access higher yielding Australian corporate bonds in the wholesale market.
“XTBs allow all other investors to access the same superior returns from low volatility floaters,” he said.
According to the company, each XTB, that provided retail investors to gain exposure to Australian corporate bonds, would offer investors an ASX-listed security that would deliver the price stability and returns of a specific underlying corporate bond with no minimum investment.
Recommended for you
There is one specific risk that is a significantly higher concern for financial services directors compared to companies overall and is impacting their risk appetite, according to the AICD.
Global fund managers are shunning bonds, with the asset class seeing the largest drop in allocations in more than 20 years.
Australian Ethical has seen its funds under management reach $10 billion, driven by organic customer growth and superannuation contributions.
Financial advisers will have access to private equity investments run by WTW for the first time as it launches a pooled fund to provide savers with access to traditionally institutional assets.
