Powered by MOMENTUM MEDIA
moneymanagement logo
 
 

New XTB models to simplify corporate bond exposure

XTBs/model-portfolios/ACBC/

image
image image
expand image

The Australian Corporate Bond Company (ACBC) has today launched two XTB (exchange traded bond units) only model portfolios aimed at providing an efficient way for advisers to manage the direct investment fixed income part of their business and incorporate exposure to individual corporate bonds.

Since launching 13 months ago, $70 million worth of XTBs have traded on the ASX, with investors receiving direct exposure to returns from corporate bonds over blue-chip companies, including Telstra and National Bank of Australia (NAB).

The High Yield Model Portfolio, which was the first new XTB, was quantitative-based, with a qualitative overlay and consisted of a minimum of eight XTBs.

The ACBC has also launched the Maturity Ladder Model Portfolio, which aimed to provide high return of capital from around five maturing XTBs on a yearly basis.

"Our XTB model portfolios have been developed in direct response to growing demand from advisers," ACBC chief executive and co-founder, Richard Murphy, said.

"Extraordinary market conditions are driving a growing need for higher-yielding, low volatility products, which makes the launch of our model portfolios especially timely."

The new XTB model portfolios are available from the ACBC, with Murphy stating that they will fill a gap in the market space and benefit customers looking for stable fixed income to ride out volatility.

"These new model portfolios should resonate with clients looking for a transparent and stable fixed income portfolio that offers regular and predictable income streams," he said.

"Our model portfolios make it easier for advisers to build corporate bond portfolios for clients."

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

The succession dilemma is more than just a matter of commitments.This isn’t simply about younger vs. older advisers. It’...

1 week 1 day ago

Significant ethical issues there. If a relationship is in the process of breaking down then both parties are likely to b...

1 month ago

It's not licensees not putting them on, it's small businesses (that are licensed) that cannot afford to put them on. The...

1 month 1 week ago

ASIC has released the results of the latest adviser exam, with August’s pass mark improving on the sitting from a year ago. ...

1 week 4 days ago

The inquiry into the collapse of Dixon Advisory and broader wealth management companies by the Senate economics references committee will not be re-adopted. ...

2 weeks 4 days ago

While the profession continues to see consolidation at the top, Adviser Ratings has compared the business models of Insignia and Entireti and how they are shaping the pro...

2 weeks 6 days ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND