XTB to expand range of investment choices


Richard Murphy

XTB, an Australian-based provider of Australian Stock Exchange-traded corporate bond units, said today it planned to expand its range of XTBs and also start a Responsible Investing separately managed account (SMA).

“Discussions with ASX to launch the new PDS for the expanded range are underway,” said XTB co-founder and Chief Executive Officer Richard Murphy. “The continued broadening of our product range reinforces XTB’s commitment to driving innovation in the fixed income market.

“The expansion of the range is likely to include XTBs with higher yields. This will broaden the choices of XTBs available to retail investors and advisers that provide more than 40% uplift on current Term Deposit rates.”

Extending the XTB Maturity Ladder

Mr Murphy said the new XTBs would allow Australian investors to develop a laddered portfolio of fixed-rate bonds, where maturities occur annually.  Laddering allows investors to manage their portfolios in an uncertain interest rate environment and take advantage of any future rate increases.

“The new XTBs will allow investors to strategically extend their bond ladder out to 2025,” said Mr Murphy.

“The approach of reinvesting the rate rise-impervious capital each year as a bond in the portfolio matures is becoming a popular approach we’re seeing from investors.  It’s a strategy that works well when interest rates rise.”

Responsible investing

Ian Martin, XTB’s co-founder and Chief Investment Officer, said XTB expects to offer a Responsible Investing SMA before the end of the year, following strong investor interest for products that deliver anticipated returns as well as meet ethical requirements.

“The demand for ethical investments has increased substantially over recent years,” said Mr Martin. “Our upcoming Responsible Investing product will deliver what investors are looking for within the increasingly popular SMA structure.”

XTB currently provides investors with the ability to gain exposure to individual Australian corporate bonds issued by leading corporates on the ASX, just like buying shares in the same companies.

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