XTB, Praemium strike SMA partnership

XTB and Praemium have announced a partnership that will see the launch of a pure fixed income separately managed account (SMA) model portfolio.

According to a statement, the Yield Plus portfolio is available exclusively to financial advisers via the Praemium SMA platform.

The portfolio invests in individual investment-grade corporate bonds through XTB on the ASX and excludes “hybrids and subordinated notes with callable features,” the statement said.

Praemium head of distribution Martin Morris said he was pleased to be bringing a new fixed income solution to Praemium’s advisers.

“In the current low interest-rate environment, more advisers are looking for ways to deliver income and yield to clients, but without a significant increase in risk and volatility,” Mr Morris said.

“We are excited to work with XTB to offer advisers and their clients exposure to the benefits of corporate bonds on ASX.”

Ian Martin, executive director of Australian Corporate Bond Company (ACBC), the company behind XTB, said the SMA model portfolio is another step forwards in XTB’s commitment to driving innovation within the local fixed income market.

“The Yield Plus model portfolio has been developed in direct response to demand from advisers looking for an efficient and transparent way to invest in fixed income,” Mr Martin said.

“With the Yield Plus model portfolio, advisers can deliver a higher rate of return than many cash-like investments such as TDs, and higher yields than fixed income ETFs.”

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