XTB portfolios deliver strong end to 2017
Australian provider of stock exchange-traded corporate bond investments, XTB has announced that its fixed-rate portfolios have considerably outperformed both the credit index and the comparative bond exchange traded fund (ETF) market in 2017.
According to XTB’s co-founder and chief executive, Richard Murphy the strong performance of XTBs on the Australian Stock Exchange (ASX) was coupled with the low interest rate environment which helped deliver delivered a solid 2017 for the firm.
The company also said it generated significant interest from investors in 2017, with funds under management up 117 per centto $265 million in 2017, up from $122 million in 2016.
The best-performing XTB portfolio was the Concentrated High Yield Portfolio, which delivered a one-year return of 7.5 per cent, versus a 5.1per cent return from the credit index.
The top four comparative bond ETFs delivered annual performance of between 2.1 per cent and 5.2 per cent, it said.
“XTBs allow investors to gain exposure to individual Australian corporate bonds issued by leading corporates on the ASX, just like buying shares in the same companies. Each XTB delivers the price stability and income from a specific underlying corporate bond with no minimum investment,” Murphy said.
“More than doubling FUM in a year is testament to the fact that many investors have been seeking alternative defensive investments for their portfolios,”
“Corporate bonds are the missing link on the ASX, providing investors with up to 40% greater returns than term deposits, with the added convenience of daily liquidity through ASX trading.”
XTBs are also offered via most of Australia’s leading platforms and wraps, including AMP North, BT Wrap, HUB24, Macquarie, and Praemium.
AUTHOR
Oksana Patron
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.
