The Australian Corporate Bond Company (ACBC) has announced the launch of two exchange-traded bond (XTB) unit model portfolios this month to meet adviser demand for portfolios that make corporate bond exposure simple.
ACBC said in a statement yesterday that the Concentrated High-Yield model portfolio and the Cash Plus model portfolio were created exclusively for financial advisers and their clients to provide further opportunities for incorporating exposure to individual corporate bonds.
The portfolios build on the first two XTB model portfolios launched in July this year as market uptake of XTBs continues to grow, ACBC said.
The Concentrated High-Yield model portfolio caters to investors with lower balances by providing a portfolio with a smaller number of XTBs, which lowers portfolio cost, the statement said.
The Cash Plus model portfolio is designed for investors looking to create a tradeable alternative to cash or short-term TD products.
Australian Corporate Bond Company co-founder and chief executive Richard Murphy said the XTB model portfolios have been launched in response to growing adviser appetite for an enhanced way to manage the direct investment fixed-income component of their business.
“In the current low interest rate environment, advisers are being challenged by their clients to find efficient ways of delivering yield and income, but without price volatility, especially for those in, or approaching, retirement," Mr Murphy said.
“We will continue to provide advisers with access to a growing range of corporate bond solutions to meet these needs of their clients. With four model portfolios now available, advisers can choose one or a combination of models to suit their clients’ risk tolerance and financial objectives."
The XTB model portfolios are available upon request via the ACBC.
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