New tools to help advisers and investors build corporate bond portfolios

Richard Murphy

Richard Murphy

ACBC launches new website to support education and investment in XTBs

The Australian Corporate Bond Company (ACBC) has launched a new website with enhanced features and tools to help advisers and investors calculate the potential outcomes of investing in XTBs (Exchange-Traded Bond units).

XTBs are an ASX-traded product that provide investors with access to corporate bond returns. Each XTB provides access to the returns of an individual underlying senior corporate bond, with no minimum investment amount.

The new website, which offers two portals tailored to advisers and investors, features a two-way yield & price calculator covering both fixed and floating rate bonds, plus a unique new cash flow tool enabling users to build a portfolio of up to 10 XTBs and visualise the timeline of coupon payments during the life of their investment.

Richard Murphy, CEO and co-founder of ACBC, said the new tools offer advisers and investors an easy and interactive way to learn more about XTBs and how corporate bond exposure can benefit their investment or superannuation portfolios.

“Since launching in May last year XTBs have attracted growing interest from both investors and advisers and we’ve been pleased to see strong traffic across our new investment tools.

“In just the first few weeks of the website going live, we’ve seen a broad range of XTBs added to portfolios via our tools and calculators, indicating that both the tools and the product are resonating well with the market,” he said.

“With more functionality and interactivity, our new website supports users through the educational journey. For investors, this involves selecting up to 10 XTBs that meet their requirements, seeing the cash flows that come from coupons & principal repayment month-to-month and year-to-year, and the overall returns. We have also made sure investors can then email the portfolio & performance charts directly from the website to their adviser or their own email account. For advisers, we’ve also developed a more advanced cash flow modelling tool that allows advisers to gain further detailed analysis to assist them in implementing their client portfolios.”

The new site also features multiple interactive elements, including scrolling tickers that can be clicked to view more detailed information on each XTB, plus explanatory videos.

With ongoing instability, volatility and uncertainty of global share markets over the last number of years and into 2016, Mr Murphy said advisers owe it to their clients’ best interests to fully consider their allocation of client portfolios to fixed income. And within the asset class, the circa 100 basis point Yield improvement corporate bond investments like XTBs can deliver over Term Deposits, without the excessive volatility associated with equities and hybrids.

“Corporate bonds offer an important way for retail investors to diversify their investment portfolios, bringing capital stability and greater certainty of income and outcome. Investment and Superannuation portfolios need greater diversification and more defensive assets to balance more risky and volatile investments. 2016 is the right time for investors and advisers to explore XTBs.”

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