Corporate bond investments provider XTB’s fixed-rate portfolios outperformed both the credit index and the comparative bond exchange-traded fund (ETF) market in 2017.
The firm also said its funds under management jumped 117 per cent to $265 million in 2017 from $122 million in 2016.
XTB’s top-performing portfolio, the Concentrated High Yield Portfolio, delivered a one-year return of 7.5 per cent versus 5.1 per cent from the credit index. Meanwhile, the top four comparative bond ETFs delivered an annual performance of between 2.1 per cent and 5.2 per cent.
XTB co-founder and chief executive Richard Murphy said the performance of XTBs on the Australian Securities Exchange, along with the low interest rate environment, had delivered a strong 2017 for the firm.
There are over 50 XTBs available in the Australian market, giving investors exposure to individual corporate bonds issued by blue-chip companies, including AMP, BHP, Qantas and Telstra.