XTB Monthly Income Model Portfolio

Cash PlusMonthly Income Portfolio

Investment objective

Within the investable universe of ASX traded XTBs to construct a fixed income model portfolio that aims to provide:

  • A monthly income stream
  • Interest rates that are competitive with ‚Äėat call‚Äô bank accounts and term deposits
  • Capital stability, with minimal price volatility
  • Daily liquidity, with no holding periods

Model portfolio manager

Australian Corporate Bond Company Limited (ACBC)

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Investment strategy and approach

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.

Quantitative process

Stage 1: Selection

Define the investment universe of securities using the following criteria:

  • Select Floating Rate XTBs only
  • Rank from highest relevant BBSW + Trading Margin
  • Identify income payment dates (monthly)
  • Investment grade credit only¬Ļ
  • Available liquidity

¬Ļ At the time of¬†establishment

Stage 2: Application

Apply a set of rules to select an optimal XTB Monthly Income model portfolio.

Qualitative overlay

Adjustments may be made to the portfolio. These adjustments may be made to reflect market conditions, despite the rules being satisfied.

The general approach is to hold securities to maturity.  However, model portfolio changes may be made in response to:

  • An increase in the relevant BBSW + Trading Margin, by adding¬†securities
  • Improvement to the portfolio, by switching securities

Designed for investors who …

  • Are looking to create an exposure similar to a term deposit with monthly payments and daily liquidity
  • Seek a transparent low risk fixed income model portfolio¬†


Portfolio parameters

Inception date 30 August 2016
Investment universe Available Floating Rate XTBs
Minimum number of securities 3
Minimum credit rating Individual bonds must be investment grade at the time of inclusion within the model portfolio
Maximum individual issuer exposure 35%
Capital structure parameters
  • 100% exposure to senior corporate bonds
  • 0% exposure to hybrids
Benchmark RBA cash rate
Liquidity All XTBs must have sufficient observable liquidity

View portfolio rules and maintenance

View Model Portfolio Performance Reports

Request this portfolio

To request more information about this portfolio, and receive details of the XTBs included within the portfolio please contact us, or complete the form on the link below:

Tel: 1800 995 993

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