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
Funds managers are being urged by financial advisers to improve their “outdated” education and communication about alternative funds as they actively target them towards retail clients.
GAM Investments has appointed Eric Finnell as its managing director for Australia after his predecessor left to take up the CEO role at Global X.
Fidelity International has looked internally to appoint a head of strategic sales and solutions for its Australian division, which is a newly created role for the business.
Global investment manager Barings has launched two private credit funds for Australian investors as advisers indicate an expectation of increasing allocations to private markets.
