XTBs now part of Hub24, Praemium super offer


By Elizabeth Somerville

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Exchange-traded bonds (XTB) have been added to the Hub24 Super and Praemium Super separately managed account (SMA) offerings, as market demand for the new fixed income investment offering grows.

XTBs, which were launched in May by Australian Corporate Bond Company (ACBC), were now available on 19 leading platforms and had been approved for distribution by more than 90 Australian financial services licence dealer groups, ACBC said yesterday.

The products provided retail investors with access to the corporate bond market, with no minimum investment, via a simple, ASX-tradeable security that tracked the performance of a specific underlying bond.

The inclusion of XTBs on a number of investment and super platforms demonstrated the retail sector’s appetite for transparent and easy-to-access fixed income solutions for individual investors and superannuation portfolios, ACBC co-founder and chief executive Richard Murphy said.

“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,” Murphy said.

“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.”

The group planned to release a further three tranches of XTBs over the coming weeks.

Hub24 managing director Andrew Alcock said the group was pleased to include XTBs on its platform where they would provide advisers with 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,” Alcock said.

In addition, Praemium commercial director Andrew Varlamos said the group had included XTBs on its platform in response to adviser demand.

Praemium had an open architecture approach to providing its advisers with new investment approaches, Varlamos added.

ACBC initially launched 17 XTBs on the ASX in May, covering senior bonds from blue-chip stocks, which included Telstra, Woolworths and BHP.

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