Quantifeed, XTB launch bond portfolio


By Megan Tran

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Digital wealth management firm Quantifeed has partnered with XTB to launch the first model portfolio of exchange-traded bond units (XTB) aligned to floating-rate notes (floaters) from Australian corporate issuers.

The XTB Active Cash Australia model portfolio was developed by Quantifeed as a result of the growing request from investors for a liquid yield alternative to bank deposits and would be open to investors in Australia and Asia.

“Each XTB offers investors an ASX-listed security that delivers the price stability and returns of a specific underlying corporate bond with no minimum investment,” XTB said.

Quantifeed senior executive for strategic partnerships Graeme Brant said many investor portfolios placed too much emphasis on equities at the expense of bonds.

“Floating-rate notes have historically exhibited low correlation to equities as well as defensive characteristics during market declines,” Brant said.

“The model portfolio has the potential to protect against rising rates [and] offers investors a simple way to access a diversified basket of Australian bonds with investment-grade credit ratings.” XTB co-founder and chief executive Richard Murphy said interest rates in Australia were currently higher than some other markets in the region, which had allowed institutional investors to access higher-yielding Australian bonds in the wholesale market.

“XTBs allow all other investors to access the same superior returns from low-volatility floaters,” Murphy said.

“We are delighted Quantifeed has developed the XTB Active Cash Australia model portfolio to give investors across the region access to floaters from a range of highly rated Australian banks.”

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