ASX-listed bond broking firm, Income Asset Management (ASX: IAM), has formed a collaboration with investment and superannuation platform, HUB24, allowing financial advisers to access corporate bonds via IAM in parcels from just $50,000.
IAM Executive Director, Jenna Labib, said the addition to the platform via the HUB24 Investor Directed Portfolio Service, comes at a time of increased appetite in high quality investment grade bonds and marks a significant expansion of IAM’s offering.
“With stickier inflation in the US and Australia, market expectations of interest rate cuts have been pushed back. This creates opportunities for bond investors to lock in higher returns yielding north of 6% for investment grade bonds. The addition of IAM bonds to HUB24 will allow more advisers to provide wholesale clients with access to the appealing characteristics of the Australian corporate bond market,” Ms Labib said.
“Most importantly, it reflects the growing demand from advisers for greater access to diversified investment options including fixed income.”
Despite playing an important role in client portfolios due to their lower volatility and income generating capability, Australian corporate bonds have typically only been available to wholesale investors in large parcel sizes of $500,000.
By improving accessibility to direct bonds through HUB24, IAM can support more Australians wishing to diversify their portfolio and explore the benefits of fixed income options.
Ms Labib said IAM’s expertise in providing a range of investment options - from individual trade ideas to bespoke portfolios as well as off the shelf model portfolios - could benefit advisers wanting more control over the fixed income allocation they offer clients.
“Our bond portfolios provide simple and transparent access to bonds for wholesale investors looking to manage risk, and earn attractive yields and predictable income.”
Income Asset Management has $3.41 billion assets under administration and covers a broad spectrum of income investments across bonds, loans, deposits and funds management.
