Richard Murphy

XTB, an Australian-based provider of Australian Stock Exchange-traded corporate bond investments, said yesterday that its fixed-rate portfolios considerably outperformed both the Composite Bond Index and the Credit Index in the past 12 months.

As a result, XTB Portfolios also markedly outperformed a range of popular investment products that track these indices – including Exchange Traded Funds (ETFs), ETPs and managed funds.

The XTB Concentrated High Yield Portfolio had a yield to maturity of 3.31%¹ on 9 October 2017.

“In comparison, term deposit rates are at record lows of 1.45% to 2.8%² – which is all an investor is given for locking your funds up in a term deposit for 5 years,” said Mr Murphy.

“And unlike term deposits, XTBs have the added benefit that they can be sold on the ASX throughout their life, or held to maturity for investors to receive their face value.”

APRA’s [September] household deposit figures show bank held deposits were at a record $858 billion. “Australian investors have resorted to the familiarity of term deposits.”

XTB has also started two separately managed accounts on Praemium’s platforms and Macquarie’s Investment Wrap. They have also made XTBs available on AMP North Super and Allocated Pension Platform. A Responsible Investing SMA is also expected to be live later this year.

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