XTB portfolios beat indices
Australian Securities Exchange (ASX) traded corporate bond investments provider, XTB has said all of its portfolios managed to outperform relevant bond indices by 175 per cent in the past 12 months.
XTB co-founder and chief executive, Richard Murphy, noted that the company’s fixed rate model portfolios had also outperformed four comparative and popular exchange-traded funds (ETFs) and exchange-traded products (ETPs) by 350 basis points (3.5 per cent), on an after-fee basis for the 12-month period ending 31 August.
The strong performance of XTBs trading on the ASX in a low interest rate environment had led to a strong 2017 for the firm, Murphy said.
“Before XTBs there was a gaping hole on the ASX for investors seeking individual securities between low-risk government bonds and much more capital-volatile and complex hybrids, and the equity market,” he said.
“On our two-year anniversary in June, we passed the funds under management (FUM) milestone of $200 million and this continues to grow.”
Murphy also pointed out that Australian investors had “defaulted to the familiarity of term deposits despite historically low returns”.
According to Murphy, XTBs provided an alternative to term deposits as they had low capital volatility and could be sold on the ASX throughout their life or held to maturity for investors to receive their face value.
“Corporate bonds are the missing link on the ASX,” he said.
“They provide greater returns than term deposits, with the added convenience of daily liquidity through ASX-trading.”
AUTHOR
Oksana Patron
Recommended for you
Bentham Asset Management has become the latest fund manager to expand its distribution team as it reports increased interest in its credit strategies.
L1 Capital, which is in talks to merge with Platinum Asset Management, has indicated it will be voting against a deal to convert a Platinum LIC into an ETF.
Evidentia Group has hired a head of quantitative investments who joins the investment firm and managed account provider from AMP.
Fidelity International has worked in tandem with Australian wealth manager Emanuel Whybourne & Loehr to launch an actively managed global equities strategy aimed at financial advisers.
