How investors are using XTBs

Interested, but want to know how other investors have used XTBs?

Interested in corporate bond XTBs, but want to know how other investors have used them in their own portfolios? If this is you, we spoke with a selection of XTB investors and financial planners who have been recommending XTBs to their clients.

Steve Harris – Retail Investor

“You are pioneers…having established (and seen) the opportunity to facilitate ASX bond trading to the ‘retail’ investor. Congratulations on that.”

Retail investor Steve Harris contacted us as he started his research into the range of bond investments available to him. He had a few questions about XTBs and how they compare and contrast to bond ETFs and trading OTC.

Frank Gardiner – Retired, Retail Investor

“I want to be the banker now, rather than the shareholder. It’s a much safer way to invest – I don’t have to worry about share price volatility anymore.” 

“Since 1994 I have been focused on shares. I have made some good money through buying and holding for the long term. My objective now is to protect what I have made. I feel very bearish about the markets in the near future. I want to avoid risk in my portfolio as much as possible now I’m retired”.

Read more about why Frank chose XTBs

Leith Thomas – Portfolio Manager

“XTBs are leading the way and bridging the gap between fixed interest issuers and direct investors.”

“Buying a bond with the option of retaining it until maturity provides greater ability to manage interest rate and credit risk. XTBs give greater control over tax outcomes than the Fixed Interest ETF alternatives”.

Find out why Leith finds XTBs more appealing than bond ETFs

Shaun Liddicoat – Financial Adviser

“XTBs provide an efficient and easy to manage fixed interest solution for my clients. They offer a superior fixed interest return for the risk that investors are exposed to.”

“XTBs provide an efficient and easy to manage fixed interest solution for my clients. They offer a superior fixed interest return for the risk that investors are exposed to.

Given the low interest rate environment we are in, we found the returns on term deposits no longer satisfactory. Furthermore, term deposits can be an administrative hassle, as most fall due within 12 months and require regular decisions about where to reinvest. Corporate bonds via XTBs have longer durations than term deposits, and offer a higher yield. They can also be easily purchased via a client’s low cost online share trading platform.

Our members who are in retirement phase, typically have up to half of their superannuation invested in XTBs. The other half, tends to be invested in a portfolio of direct shares / exchange traded funds, with a small cash holding.”

Find about more about how Shaun uses XTBs for his SMSF clients

Shane Casey – Financial Adviser

“I looked at XTBs as bond funds and ETFs didn’t offer the predictability I wanted for my clients. Fixed income should offer the predictability of fixed returns. Being perpetual, bond funds and ETFs can’t offer that.”

“The predictability of receiving known income on set dates has been of great comfort to my clients. After a turbulent time in their lives, they were looking for an investment without any surprises, but one which still performs better than other fixed income alternatives.

The XTB portfolio I created has delivered on both counts.”

Read more about the XTB portfolio Shane developed for his clients

The views expressed in these case studies are not necessarily the views of XTB.  The information in this article is general in nature. It should not be the sole source of information. It does not take into account the investment objectives or circumstances of any particular investor. Investors should read the PDS that relates to that Class of XTB prior to making an investment decision and consider, with or without advice from a professional adviser, whether an investment is appropriate to your circumstances. Australian Corporate Bond Company Limited is the Securities Manager of XTBs and will earn fees in connection with an investment in XTBs.

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