This article is for the use of Adviser Representative's (AR) only. If you are a client and wish to learn more about this feature, please contact your Adviser Representative or Netwealth at contact@netwealth.com.au.
Australian and international government bonds are now available on the Wealth Accelerator menu for wholesale clients only. These 23 developed markets hold investment grade credit ratings and are evaluated based on economic development, size, liquidity, and market accessibility.
Bonds will be offered where Netwealth can administer the relevant foreign currency. As at the time of publishing, Bonds issued in Norway Krone cannot be administered.
The administration of these international government bonds will follow the same operational procedures as other unlisted international corporate bonds.
How to apply:
- Contact your TRM or Netwealth to determine if the bond is available on the platform. Once they have confirmed if the bond is approved or non-approved, follow the instructions below.
Approved Bond Trades (Bonds already set up on the platform):
- Place trade directly with a Netwealth approved broker.
Bonds need to be held by Euroclear or DTCC and priced by ICE.
- Send contract notes, trade confirmations and client allocations to tradesettlements@netwealth.com.au for domestic government bonds settling in AUD and international@netwealth.com.au for international government bonds settling in foreign currencies by COB by T+1 for Netwealth to settle T+2.
- Please ensure there are enough funds in the client’s ‘available cash’ account to cover the purchase amount.
Non-Approved Bond Trades (Bonds not currently set up on the platform):
- Contact your TRM with the following details:
- Bond Name / description,
- Denomination (amount),
- ISIN,
- Term sheet / or similar details,
- Holding statements if applicable, and
- Client details if applicable.
- Place trade directly with a Netwealth approved broker.
Bonds need to be held by Euroclear or DTCC and priced by ICE.
- Send contract notes, trade confirmations and client allocations to international@netwealth.com.au by COB by T+1 for Netwealth to settle T+5.
- Please ensure there are enough funds in the client’s ‘available cash’ account to cover the purchase amount.
Frequently Asked Questions:
What are the minimum amount requirements?
This varies depending on the method of settlement. The term sheet, which can be provided by the broker at the adviser’s request, will specify the minimum tradable amounts.
Is this process available for direct clients?
As bonds are traded externally, direct clients without an adviser will not be able to trade them.
What if I am an adviser and do not have a TRM?
Please email tradesettlements@netwealth.com.au to check if a bond is available.
Who is a Netwealth approved broker?
This is any broker who can facilitate settlement via Austraclear or Euroclear. These are Netwealth’s settlement providers.
How do I in-specie transfer bonds to Netwealth?
Check the bond is approved, if not, follow the approval process above. Complete the in-specie transfer form and post the original forms, cost-base history and a current PV to Netwealth.
Are there any fees?
There is a $20 settlement fee. There is also a 0.15% international fee.
What is Netwealth’s Euroclear ID and DTCC ID?
Netwealth Euroclear ID is 20227 and DTCC ID is 257661.