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ACBC Fixed Income No. 1 Model Portfolio

Macquarie logopraemium

ACBC Fixed Income No. 1 Model Portfolio

About the Australian Corporate Bond Company Fixed Income No. 1 Model Portfolio

In response to growing demand from advisers looking for fixed income solutions, we have launched a fixed income model portfolio on Macquarie SMA, Praemium SMA and SuperSMA. The portfolio brings together the access and transparency of XTBs with the investment expertise of Ian Martin (Chief Investment Officer). Advisers can now access a managed model portfolio that consists of individual fixed income securities over ASX listed companies.

All investments within the SMA are senior unsecured, Investment Grade fixed income.

Separately Managed Accounts (SMAs) offer investors easy access to expert knowledge in a transparent, practical, and cost-effective manner, while also allowing full ownership of the underlying instruments.

Portfolio Summary Details

Portfolio ACBC Fixed Income No.1 Model Portfolio
Inception Date 23 January 2017
Platform
Model Portfolio Profile Macquarie SMA – SMAACB01S
Praemium SMA & Super SMA – AB0001*
Portfolio Manager Australian Corporate Bond Company Limited (“ACBC”)
Minimum model investment $10,000
Benchmark RBA Cash Rate
Designed for The Fixed Income No. 1 portfolio is designed for investors and SMSFs seeking:

  • A fixed income portfolio using individual securities available on ASX
  • A transparent and capital-stable fixed income model portfolio that offers a regular and predictable income stream
  • An investment risk profile less than equities and hybrids, and a higher return than ‘cash-like’ investments.
Investment objective

The model portfolio will invest in individual investment grade corporate bonds through XTBs on ASX.

The model portfolio will aim to provide:

  • A regular and predictable income stream
  • A capital preservation focus and low levels of price volatility
  • An absolute return that is above returns on term deposits
  • Liquidity, to ensure investment flexibility.
Investment Universe Total universe of XTBs (Exchange Trade Bond units) available on ASX.
Investment Strategy To ensure the best opportunity to meet the model portfolio’s objectives, ACBC selects a portfolio of XTBs using a 2-stage quantitative process, with a qualitative overlay.
Typical Number of Stocks 8-15
Asset Allocation Ranges %
  • Cash: Min – 0%, Target – 2%, Max – 15%
  • Australian Fixed Income: Min – 85%, Target – 98%, Max – 100%
Investment Management Fee 0.20% p.a. (inc GST)
Performance Fee Nil
Minimum Suggested Time frame 3-5 years
Turnover The objective and nature of the portfolio is to keep turnover to a minimum. Due to the nature of fixed income, there may be XTBs that will mature during the course of a year. Prior to maturity, the manager will select a replacement investment in accordance with the Investment Objectives and Strategy.
Brokerage For information about brokerage for trading securities within a portfolio which ordinarily applies, refer to the ‘Transactional and Operational Costs’ in the Praemium SMA Product Disclosure Statement.
Other resources
 * Currently the Yield Plus Model Portfolio. Name to be changed in July 2017

Ian Martin: Chief Investment Officer

Ian picture-min

Ian has over 30 years’ experience in fixed income markets globally. Prior to the formation of ACBC, Ian held the position of Head of Rates Australia and New Zealand for Deutsche Bank Australia. He was a member of the Australian Financial Markets Association (AFMA) Market Governance Committee, a board member of Yieldbroker and a member of Deutsche Bank’s Global Rates Executive Committee.

Download PDF

Contact Us

For further details please contact us:

T: 1800 995 993
E: SMAs@xtbs.com.au

Useful Tools

Cash Flow Tool
Our cash flow tool allows you to chart the coupon payments for a selection of up to 10 XTBs. Build a cash flow

Yield Calculator
Our yield calculator provides a yield to maturity for any bond price entered, or a price when a yield is entered. Calculate a yield

Key Bond Terms
A list of key bond market terms with explanations is available. View here

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