The Australian Corporate Bond Company has released two new exchange traded bond (XTB) unit model portfolios on the back of what it said was adviser demand for multiple portfolios that simplified corporate bond exposure.
It has released the concentrated high-yield model portfolio for investors with lower balances, which provides a portfolio with a smaller number of XTBs, hence lowering portfolio cost.
It has also released the cash plus model portfolio for investors looking for a tradeable alternative to cash or short-term term deposit products. The firm said it had yields in the high twos, while offering 100 basis points.
It also has monthly interest payments, daily liquidity on the Australian Securities Exchange (ASX), while the portfolio was based on senior floating-rate bank bonds, with volatility of between 0.2 and 0.3 per cent per annum over the long-term.