XTB partners with Praemium for fixed income SMA
Advisers are demanding more efficient ways to invest in fixed income and the introduction of a new offering in the market would open more investment options, according to the Australian Corporate Bond Company (ACBC).
XTB portfolio manager and designer of the XTB/Praemium ‘Yield Plus’ separately managed account (SMA) solution, Ian Martin, said the collaboration was a step forward in the development of innovative fixed income solutions.
“The Yield Plus model portfolio has been developed in direct response to demand from advisers looking for an efficient and transparent way to invest in fixed income,” he said.
“With the Yield Plus model portfolio advisers can deliver a higher rate of return than many cash-like investments such as TDs, and higher yields than fixed income ETFs.”
Praemium head of distribution, Martin Morris, said the offering would attract a range of advisers.
“In the current low interest-rate environment, more advisers are looking for ways to deliver income and yield to clients, but without a significant increase in risk and volatility,” he said.
“We…offer advisers and their clients exposure to the benefits of corporate bonds on the ASX.”
The portfolio would be available to advisers via the Praemium SMA platform and would invest in individual investment-grade corporate bonds, through exchange traded bonds (XTBs) on the Australian Securities Exchange (ASX).
AUTHOR
Hope William-Smith
Recommended for you
Lonsec and SQM Research have highlighted manager selection as a crucial risk for financial advisers when it comes to private market investments, particularly due to the clear performance dispersion.
Macquarie Asset Management has indicated its desire to commit the fast-growing wealth business in Australia by divesting part of its public investment business to Japanese investment bank Nomura.
Australia’s “sophisticated” financial services industry is a magnet for offshore fund managers, according to a global firm.
The latest Morningstar asset manager survey believes ETF providers are likely to retain the market share they have gained from active managers.
