As financial markets face volatility and uncertainty, bonds have emerged as a steadfast asset class, offering stability, income, and a shield against market turbulence.
They provide investors with the opportunity to act as lenders, earning interest over time and providing a stable source of income while protecting their money.
The significance of bonds as a reliable investment option was underscored by the covid pandemic – reaffirming their value as a safe-haven asset in uncertain times.
While bonds are not designed to replace other investment options, they can be complementary, diversifying investment portfolios and reducing overall risk exposure.
ASX-listed Income Asset Management (IAM) is at the forefront of the income investment sector. It offers the full spectrum of fixed income, listed and over-the-counter, bonds, deposits and loans to wholesale investors mostly through advisory firms or investment platforms.
The Sydney-based company provides a range of expertise and resources to help investors tap into the fixed-income markets. Through IAM, investors can strengthen their portfolios with bonds while benefiting from the knowledge and expertise of income asset management professionals.
The power of bonds
Bonds are issued by borrowers, such as corporations or governments, to raise funds from investors for a specific period.
The borrower pays a specified rate of interest, known as “coupon payments”, to the investor throughout the bond’s life, typically semi-annually – until maturity.
What some investors don’t fully understand is that bonds can be sold prior to maturity, offering liquidity for investors where needed. This ability to trade bonds, gives more astute and active investors, the opportunity to look for capital gains.
In many cases, bonds can reduce overall portfolio risk and help protect capital set aside for retirement. Growth assets such as equities and property will typically outperform stable investments like bonds over time, but as investors get closer to retirement, they can ill-afford significant losses that come with volatility.
It is also important to keep in mind associated risks when investing in bonds, including interest rate risk, credit risk, and liquidity risk.
With these kept in mind, and the very fact that bonds are traded on the over-the-counter (OTC) market, without a central exchange, investors need a bond broker such as Income Asset Management.
IAM Capital Markets Executive Director Jenna Labib is equipped with extensive knowledge and educates investors on the importance of defensive assets in a diversified portfolio.
She provides direct access to corporate bonds for private clients, financial advisers, and family offices, enabling them to benefit from the reliable income streams that bonds offer.
Income Asset Management provides wholesale investors with direct access to more than 350 government and corporate bonds, guiding them and offering valuable insights into various bond options.
With more than 14 years of specialised industry experience and greater than $3 billion in assets under administration, IAM excels in cash deposits, bonds, asset management, and treasury management services.
The company boasts a team of industry professionals, led by Chief Executive Jon Lechte, who has more than 30 years of experience in fixed income and cash management.
Executive Chairman John Nantes also brings more than 20 years of financial services experience, having previously worked at the nation’s largest SMSF business.
IAM paves the way as sole listed income investment services company
As the sole listed income investment services company, Income Asset Management leads the industry, offering solutions in cash, bonds, and funds management for sophisticated investors and professional investment managers. Being listed is a key point of difference to other fixed-income brokers in Australia, who do not provide the transparency of a listed entity. They charge an unknown margin and charge clients an exit fee should they want to shift their investments to another broker.
IAM prides itself on delivering a comprehensive income investment service, providing investors and portfolio managers with a transparent, trustworthy and capable platform to research, execute, and manage their income investments. IAM also does not charge exit fees.
The current bond market presents an opportune time for bonds to gain popularity, with decade-high interest levels leading to higher returns on corporate bonds.
Income Asset Management stands as a one-stop shop, with a proven track record of providing investment services across all asset classes. Whether catering to high-net-worth investors or their advisors, IAM ensures its customers are covered, backed by extensive knowledge and experience.