XTBs (Exchange Traded Bond units) are building strong momentum, with the new fixed income investment offering being added to two retail super offerings this month – HUB24 Super and Praemium Super SMA.

XTBs are now available on a total of 19 leading platforms. XTBs have also been approved for distribution by more than 90 AFSL dealer groups.

Launched by the Australian Corporate Bond Company (ACBC) in May this year, XTBs offer retail investors access to the corporate bond market for the first time on ASX, with exposure to the capital stability and predictable returns from individual corporate bonds issued by top 50 ASX companies. Each XTB offers investors a simple, ASX tradable security that tracks the performance of a specific underlying bond (after fees and expenses) with no minimum investment.

CEO and co-founder of ACBC, Richard Murphy, said the inclusion of XTBs on a number of Australia’s leading investment and super platforms demonstrated the retail sector’s clear appetite for quality, transparent, easy to access fixed income solutions for both individuals and superannuation.

“XTBs have been designed to bring together the predictable income and capital stability of corporate bonds with the transparency and liquidity of the ASX market. We’re working closely with advisers and brokers to help further

educate retail investors about the role of corporate bonds within a diversified and well balanced portfolio,” he said.

HUB24 Managing Director Andrew Alcock said he was pleased to bring XTBs to the HUB24 platform.

“HUB24 is committed to providing independently-minded advisers with full choice and flexibility to meet their clients’ needs. XTBs provide an innovative way for investors to gain exposure to the previously hard-to-access Australian corporate bond market and we’re excited to bring this new investment solution to our super and investment platform.”

Praemium Commercial Director Andrew Varlamos said Praemium had an “open architecture” approach to offering new investment alternatives, and has been consistently supportive in addressing adviser demand for the increasing range of exchange traded products such as XTBs.

ACBC launched 17 XTBs on ASX in its debut series in May this year, covering senior bonds from Bluechip names such as Telstra, Woolworths and BHP. The firm plans to significantly grow the range of XTBs available in 2015 and beyond, with three further tranches of XTBs due to hit the ASX in the coming weeks.

Source: XTBs

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