New site helps advisers build corporate bond portfolios

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A new website has launched to help advisers calculate the potential outcomes of investing in XTBs.

The Australian Corporate Bond Company has launched the website, whicch it says offers two portals tailored to advisers and investors, features a two-way yield and price calculator covering fixed and floating rate bonds and has a cash flow tool enabling users to build a portfolio of up to 10 XTBs.

“With more functionality and interactivity, our new website supports users through the educational journey.  For investors, this involves selecting up to 10 XTBs that meet their requirements, seeing the cash flows that come from coupons & principal repayment month-to-month and year-to-year, and the overall returns.  We have also made sure investors can then email the portfolio & performance charts directly from the website to their adviser or their own email account.  For advisers, we’ve also developed a more advanced cash flow modelling tool that allows advisers to gain further detailed analysis to assist them in implementing their client portfolios,” ACBC CEO Richard Murphy said.

Murphy said advisers should consider allocating XTBs to their client portfolios, as corporate bond investments can offer a circa 100 basis point yield improvement over term deposits.

“Corporate bonds offer an important way for retail investors to diversify their investment portfolios, bringing capital stability and greater certainty of income and outcome.  Investment and Superannuation portfolios need greater diversification and more defensive assets to balance more risky and volatile investments.  2016 is the right time for investors and advisers to explore XTBs," Murphy said.