The federal government's financial advice reforms were not a consideration in Yellow Brick Road's (YBR) decision to form a wealth management arm and manufacture its own products, the company's executive chairman said yesterday.
Mark Bouris said the reason the listed financial service firm established YBR Funds Management (YBRFM) was based on customer demand.
"YBR Funds Management has been developed solely in response to customer demand. It's about giving hard-working Australians better returns on investment based on a smarter portfolio structure," Bouris said.
"Everyone should have equal opportunities to maximise their investments, which is why we are democratising banking with the launch of YBR Funds Management."
When questioned over the timing of YBRFM's launch amid tough markets and low investor confidence, he said: "If anything, the economic environment has made people more cautious.
"And what we're doing is pointing them in the right direction and giving them good advice in order to get the best possible returns for their investment."
YBR signed a shareholders' agreement with Coolabah Capital Investments yesterday to form YBRFM and begin internal manufacturing of funds management products.
Under the agreement, YBRFM plans to develop simple and safe cash-like, fixed-income and other related investment products for YBR's customer base.
The directors of YBRFM are YBR chief executive Matt Lawler, YBR head of product development Scott Walters, Coolabah Capital chairman Darren Harvey and financial economist Christopher Joye.
Joye has also agreed to serve as a strategic adviser to the broader YBR group of companies on product development across home loans, deposit-taking, securitisation, funds management and general retirement and superannuation.
In this role, he will supply portfolio construction and financial economics advice to enable YBRFM, and the YBR group of companies, to best capitalise on changing investment conditions.
