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Interest rate movements & bond fund performance
Now's the time to make sure your clients are on the right path
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If rates go up then bonds sell off, which means the capital price of managed funds and ETFs will fall. If a client was to ask you if this will happen again in the future what would your response be? If interest rates do go up then it is also true of the XTB price (it falls), however a key benefit of an XTB is that it has a set maturity date where it matures at $100, absent of default.
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YTMF01, YTMF03 & YTMBOQ mature in June
It's time to consider options for reinvesting
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If your clients hold these XTBs it's time to start looking for suitable replacements.
YTMF01 and YTMF03 holders:
YTMF09 (Macquarie) and YTMF10 (NAB) have the same coupon payment schedules. Alternatively, the Cash Plus Portfolio with three floating-rate XTBs provides monthly coupon payments.
YTMBOQ holders:
The Maturity Ladder portfolio has five XTBs with one maturing each year. This narrowed selection could help you to choose a maturity date to suit your client's requirements.
We have written to all XTB holders informing them of their upcoming maturity and suggested they contact their adviser to discuss a replacement.
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Coming Soon: Five more XTBs later this month
Issuers include Vicinity Centres with yields up to 3.83% as at 26 April.
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We are excited to announce that there will be a selection of five new fixed-rate XTBs available on ASX later this month. We are pleased to be welcoming a new issuer, Vicinity Centre, to our world of XTBs. In addition PDS 10 will feature more XTBs over bonds from AusNet, Dexus and Telstra.
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XTB CIO Ian Martin appeared on Ticky Fullerton's show on Sky News Business recently. Scroll through to 33 min into the show to hear Ian’s thoughts on recent events in the bond market and his expectation of where interest rates are headed.
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Get the best of both worlds in your SMSF
Many investors are not optimising the secure component of their SMSF due to over-allocation to cash & TDs. Our guide will help your clients strike the right balance between security and growth.
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Guide to Fixed Income
Not all fixed income investments are created equal. Our free guide will take your clients through the pros and cons of each of the products within the fixed income asset class to help you work out which are right for their portfolio.
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Interactive tools & calculators
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Cash Flow Tool
Build a portfolio of up to 10 XTBs and chart coupon payments and total return. With pre-loaded XTB portfolios, it only takes 3 clicks to visualise the income your clients could receive from XTBs.
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Interactive XTB Table
The Available XTBs table lets you filter by Company, Maturity Date, YTM and much more. Click on table headers, or use the filters to narrow your selection and build an XTB portfolio on the fly.
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08 MAY: YTMF04 - NAB BBSW + 0.88% 08 NOV 2018
13 MAY: YTMCCA - Coca Cola 4.25% 13 NOV 2019
13 MAY: YTMLL1 - Lend Lease 6.00% 13 MAY 2020
13 MAY: YTMLLC - Lend Lease 5.50% 13 NOV 2018
19 MAY: YTMAWC - Alumina 6.75% 19 NOV 2019
19 MAY: YTMQF3 - Qantas 7.75% 19 MAY 2022
20 MAY YTMF05 - NAB BBSW + 0.85% 20 MAY 2019
Keep up to date with XTB coupon dates on our website calendar, or follow us on Twitter or LinkedIn.
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04 MAY: Aroundtown prices A$250 million seven-year Kangaroo
04 MAY: FlexiGroup prints A$300 million ABS deal including green tranches
03 MAY: RACQ Bank prints A$55 million two-year FRN
03 MAY: Pepper plans prime RMBS transaction
03 MAY: KfW to tap April 2020 Kangaroo bond
KangaNews has an excellent summary of the latest bond transactions: View here
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If you have any questions on the content included in Yield Matters or need help with anything regarding XTBs, please contact us on 1800 995 993 or email advisers@xtbs.com.au
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Stay in touch by following us on the social platform of your choice
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