New XTB models to simplify corporate bond exposure
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."
Recommended for you
Sharing his reasoning in joining the FSC board, WT Financial chief executive, Keith Cullen, believes “product and advice cannot be separated” from each other in the current environment.
The Emerge Foundation, a charity run by financial advisers and fund managers, has announced a scholarship program to help veterans transition into tertiary education.
In an open letter, Sequoia chief executive Garry Crole has hit out against shareholders “with a personal axe to grind” as he fights for his job ahead of an EGM.
The JAWG has announced it is in talks with Treasury around five “core principles” to strengthen the education standards for new entrants to the financial advice space.