Investing

XTB Holders

Information for existing XTB unit holders

Firstly, thank you for investing in XTBs. On this page we have included some key information about your XTB holding and the key parties involved.

Summary of key businesses involved in your XTB Holding

PARTY ROLE ORGANISATION CONTACT DETAILS
Securities Manager Manages the day-to-day operations of the Trust and all of the education and marketing activities around XTBs. Australian Corporate Bond Company Limited
(ABN 34 169 442 657 and Authorised Representative No. 469037)
Suite 2, Level 10, 1 Chifley Square, Sydney, NSW 2000
T: 1800 995 993
W: xtbs.com.au
Responsible Entity Licenced under the Corporations Act to undertake the role of Responsible Entity of the Trust in accordance with the provisions of the Corporations Act. Theta Asset Management Limited
(ABN 37 071 807 684)
Suite 501, Level 5, 210 Clarence Street Sydney NSW 2000
Mail: GPO Box Q423, QVB Sydney NSW 1230
T: 02 8012 0638
W: thetaasset.com.au
Registry

Operates the registry for the XTBs including recording the names of investors on the XTB registry and ensuring investors receive any Distributions and redemption monies.

 

XTB holders wishing to update their bank details to receive XTB distributions by direct credit, rather than cheque can do so via Registry Direct.

Registry Direct, a business of ShareandFund Pty Ltd
(ABN 35 160 181 840)
Registry Direct
Level 6, 2 Russell Street
Melbourne VIC 3000
T: 1300 55 66 35
Mail: PO Box 18366, Collins Street East, VIC 8003
W: registrydirect.com.au
Custodian Holds the Underlying Bonds for safekeeping in the securities depositary Austraclear on behalf of the Responsible Entity. Australian Executor Trustees Limited
(ABN 84 007 869 794)
Australian Executor Trustees Limited
Level 22, 207 Kent Street
Sydney NSW 2000

Keeping XTB Holders informed

We will:

  • Confirm every transaction made by XTB Holders in relation to the Trust;
  • Confirm any variation to the terms of the product held by the XTB Holder;
  • Confirm any redemption or surrender of the product by an XTB Holder;
  • Provide transaction statements at least annually summarising all relevant transactions in relation to the Trust;
  • Provide access to the annual financial statements of the Trust as soon as practical from the end of the financial year on the Trust’s website at: www.xtbs.com.au; and
  • Provide XTB Holders with a tax report for Australian resident investors to help with your tax return at financial year-end.
  • The Responsible Entity will make any necessary continuous disclosure as required by the Corporations Act via the Securities Manager’s website www.xtbs.com.au in accordance with ASIC’s good practice guidance. Copies of documents lodged with ASIC in relation to the Trust may be obtained from, or inspected at, an ASIC office.
  • XTB Holders in a Class of XTBs in the Trust have the right to obtain a copy of the Trust’s annual financial report most recently lodged with ASIC and any half year financial report lodged with ASIC.

View the current XTB Australian Tax Guide

Request an XTB Investment Return Summary

All XTB Holders can request an Investment Return to be calculated on an individual XTB by completing a short form.  If you wish to receive investment returns on more than one XTB, simply complete multiple forms and we will prepare these for you as soon as possible.

Request an XTB Investment Return

Fees and costs

Fixed Rate XTBs: The Securities Manager charges an upfront fee of 0.40% of the Face Value of the Underlying Bonds multiplied by the number of years to the Maturity Date of the relevant Underlying Bonds, referred to as the “Securities Manager’s Margin”.

Floating Rate XTBs: The Securities Manager charges an upfront fee of 0.20% of the Face Value of the Underlying Bonds multiplied by the number of years to the Maturity Date of the relevant Underlying Bonds, referred to as the “Securities Manager’s Margin”.

Coupon schedule

You can view the coupon payment schedule for any XTB via the applicable bond detail page. Simply, view the Available XTBs page and click on the company name of the XTB you have invested in. The date you receive Distributions will be determined by the mechanism you chose to receive payments. If you provided your bank account details distributions will be paid via electronic funds transfer (EFT). However, if you did not provide your bank details, you will receive a your distribution and principal payments by cheque, which may delay the payment of funds.

Update your bank account details via the Registry Direct Investor Centre.

The Role of the Registry

Registry Direct is the unit registrar for all XTB holdings and can help you with administrative enquiries regarding your unit holdings.

Contact Registry Direct to:

  • Update your contact and other information
  • Update your bank details for coupon payments
  • Enquire about timing of coupon payments
  • Enquire about timing of Maturity payments
  • Enquire about tax or coupon statements
  • Enquire about other administrative matters relating to your XTB holding

Registry Direct
Level 6, 2 Russell Street
Melbourne VIC 3000
T: 1300 55 66 35
Mail: PO Box 18366, Collins Street East, VIC 8003
www.registrydirect.com.au

The Role of the Responsible Entity

The Responsible Entity has appointed agents to manage and execute its on-market activities. The appointed agents retain all profits and incur losses arising from the on-market activities. Accordingly, the Trust does not bear the risks from the provision of on-market liquidity.

The Responsible Entity allows the appointed agents to retain profits from the on-market activities as a fee for their services. In addition to the on-market activities of the Responsible Entity, the Responsible Entity may appoint a Market Maker for XTBs, to assist with liquidity on ASX, this does not guarantee liquidity in XTBs.

Duties of the RE include:

  • Acting in the best interests of investors (take these points from section 14.1 of the PDS)
  • Ensuring that Trust property is clearly identified as Trust property and held separately from property of the Responsible Entity and property of any other fund, and is
    valued at regular intervals;
  • Ensuring that payments out of Trust property are made in accordance with the Corporations Act; and
  • Reporting to ASIC any significant breach of the Corporations Act in relation to the Trust which has had, or is likely to have, a materially adverse effect on the interests of investors.

Theta Asset Management Limited
Suite 501, Level 5, 210 Clarence Street Sydney NSW 2000
Mail: GPO Box Q423, QVB Sydney NSW 1230
T: 02 8012 0638
www.thetaasset.com.au

Complaints

The Responsible Entity has arrangements in place for handling complaints. If you have a complaint regarding the Trust or our services, please contact the RE either by phone or in writing. Our procedures ensure that we deal with complaints, as soon as possible but within 45 days of receipt and acknowledge any written complaint within 15 days of receipt.

Complaints can be directed to:
Compliance Manager – Theta Asset Management Limited
PO Box Q423 QVB Sydney NSW 1230
Tel: 02 8012 0638

If we are unable to resolve the complaint or you are dissatisfied with the outcome you can contact the Financial Ombudsman Service (‘FOS’), which is independent from the Responsible Entity.

Contact FOS on:

Telephone: 1300 780 808 (local call)
Facsimile: (03) 9613 6399
Email: info@fos.org.au
Mail: Financial Ombudsman Service GPO Box 3, Melbourne VIC 3001

FOS is an independent body and is approved by ASIC to consider complaints. In order for a complaint to be considered by FOS, the claim must be less than $500,000 (unless we and you agree otherwise in writing). FOS is only able to make a determination of up to $309,000 per claim (excluding compensation for costs and interest payments).

About The Trust

The Trust is the Australian Corporate Bond Trust (ARSN 603 010 779) an Australian unit trust and registered managed investment scheme under the Corporations Act. The Trust was established in November 2014 to give investors the opportunity to gain an economic exposure to individual corporate bonds. The Responsible Entity of the Trust is Theta Asset Management Limited (the “Responsible Entity” or “Theta”). Theta has appointed Australian Corporate Bond Company Limited as the Securities Manager for the Trust. The Trust will purchase, via Sub-Trusts, Underlying Bonds corresponding to each Class of XTB.

 

The Role of the Securities Manager

Australian Corporate Bond Company was established to develop the investment opportunity represented by the XTBs over the Underlying Bonds. Its directors and executives have a broad range of skills and experience in investment banking, broking, trading, funds management, investment product manufacture and exchange operations. Australian Corporate Bond Company advises the Responsible Entity on the selection of bonds based on Australian Corporate Bond Company’s knowledge of the underlying bonds available in the wholesale market and discussions about the suitability of particular bonds for investors with banks, brokers and other advisory firms.

Australian Corporate Bond Company is responsible for growing the market in XTBs and providing the necessary education and marketing of XTBs to stock brokers, advisers and end investors. It also ensures there is operational integrity in the day-to-day operations and processes of the Trust and the XTBs and the interactions between the Market Maker, Authorised Participants, the Custodian, the Responsible Entity, the Registrar, ASX and ASIC.

Australian Corporate Bond Company may not change the Underlying Bonds in respect of a Class of XTB. If the Underlying Bonds are no longer available, have been recalled or otherwise terminated by the Bond Issuer, that Class of XTB will terminate and the proceeds from the redemption by the Bond Issuer, if any, will be paid to the XTB Holders in that Class on a pro rata basis.

 

The Bond Issuers

The Bond Issuers are either ASX listed entities or a subsidiary of an ASX listed entity. These ASX listed entities are subject to continuous and periodic disclosure requirements under the ASX Listing Rules and the Corporations Act. These continuous and periodic disclosure announcements are lodged with ASIC and the ASX and are available from the ASX website at www.asx.com.au

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