Join our daily newsletter At The Bell to receive exclusive market insights
- Income Asset Management (ASX:IAM) is offering bonds to financial advisers in Australia starting at parcels worth $50,000
- The move comes in a deal with Netwealth which can now offer bonds to the mutual benefit of both parties
- The deal comes as bond yields have increased across the board
- IAM shares last traded at 10 cents
Income Asset Management (ASX:IAM) has opened up its advertisement of bond investment products to customers through a deal with ASX-listed Netwealth (ASX:NWL).
The company can now offer more than 300 bonds in what it describes as a net positive for the local financial adviser market. Financial advisers will be able to buy small parcel bonds from IAM via Netwealth.
The deal also means Netwealth can now offer bonds to the market.
“The partnership with IAM signifies an expansion of our offering to include a diverse range of bonds, and furthers our commitment to better support clients by broadening the fixed income investment options available,” Netwealth CEO Matt Heine said.
““IAM’s ability to offer access to a wide array of bonds, including investment grade, high yield, domestic, and international bonds complements our existing services.”
IAM noted in its media release that Australian investors have typically been subjected to starting purchases at a wholesale floor of $500,000 or more.
But with this new deal under IAM’s belt, it can offer Australian investors access to parcels starting at only $50,000.
Private Austraclear manages Australia’s Over The Counter (OTC) bond market while the ASX itself also runs a bond division.
The move comes as yields on bonds have become increasingly attractive to investors who may not have previously desired to invest in the bond market.
Yields have been attracting rates of more than four per cent at home and abroad on multi-year and multi-decade government treasuries.
While that’s only true for government bonds which are a different story, corporate bonds have also been influenced upward by inflation and subsequent higher interest rates.
“Our partnership with Netwealth means advisers can build portfolios of direct bonds through the Netwealth platform, negating the need to manage investments across multiple platforms. It also streamlines reporting, with is available directly from the platform,” IAM CEO Jon Lechte said.
IAM shares last traded at 10 cents.
