Australian-based provider of ASX-traded corporate bonds, XTB has launched a new fixed income portfolio of environmental, social and governance (ESG) approved securities in response to a growing demand for ethical investments.
The XTB Emerald Fixed Income Portfolio would be a managed portfolio of individual bond units (XTBs), with the underlying bonds issued by Australia’s top firms which met its screening criteria, the company said.
The portfolio, which would be also available on the HUB24 platform, would offer investors a “regular and predictable income stream, with an investment risk profile less than equities and hybrids, and a higher return than ‘cash-like’ investments.”
XTB’s co-founder and chief executive, Richard Murphy said: “The portfolio is comprised of companies which are able to provide viable returns to investors while at the same time mitigating the environmental and social impacts of their business activity, operating in a manner respectful of society and managing within emerging ecological constraints.”
“It helps advisers to match their client’s investments with their values.”
According to Murphy, XTBs would also help to fill the gap between low risk, low return term deposits and higher risk equities in the Australian market.
“Corporate bonds are the missing link on the ASX, providing retail investors with up to 50 per cent greater returns than term deposits, with the added convenience of daily liquidity through ASX trading,” he said.
XTBs saw a significant interest from investors in 2017, with funds under management up 117 per cent to $265 million in 2017, from $122 million a year earlier, the firm said.