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
Perpetual Asset Management has launched its inaugural fixed income and credit active ETF, cashing in on the recent boom in the asset class.
Innovations in artificial intelligence are continuing apace with China leading global development, according to Betashares investment strategist Hugh Lam.
Funds under management at Pinnacle Investment Management are approaching $180 billion, helped by a substantial jump in FUM from its overseas affiliates.
Warakirri Asset Management has partnered with US-based investment manager ClariVest to give Australian retail and wholesale investors access to the firm’s global small companies strategy.
