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XTB expands offering for advisers

24 October 2017 By Oksana Patron



Australian provider of Australian Stock Exchanged-traded corporate bond units, XTB has announced an expansion of its range of XTBs and it will also start a responsible investment separately managed account (SMA).

The expansion of the company’s offering would aim to include XTBs with higher yields and broaden the choices of XTBs available to retail investors and advisers that provided more than 40 per cent uplift on current term deposit rates, the company said.

Additionally, the new XTBs would be expected to allow investors to develop a laddered portfolio of fixed-rate bonds.

According to XTB’s co-founder and chief executive, Richard Murphy, laddering would also allow investors to better manage their portfolios in an uncertain interest rate environment and take advantage of future rate increases.

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

“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.”

At the same time, the company said it expected to start offering a responsible investing SMA before the end of the year.

XTB’s co-founder and chief investment officer, Ian Martin, said: “The demand for ethical investments has increased substantially over recent years.

“Our upcoming responsible investing product will deliver what investors are looking for within the increasingly popular SMA structure,” he said.

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