OFM Investment Group is set to launch a program to educate independent advisers on the benefits and shortcomings of including bonds in client portfolios.
Newly appointed general manager product and distribution Iain Giles said there is an opportunity to increase the usage of bonds, however many planners require education as to their use.
“Many advisers who are new to the industry don’t understand the use of bonds and part of our role will be to educate them on the benefits,” Giles said.
According to Giles bonds play a role in tax structures for clients which every planner should be looking at as part of their role of knowing the client under financial service reform.
“The adviser should be looking at all tax structure options for a client under FSR. But I don’t think many advisers are including bonds in that review and we have to get them re-thinking about the use of bonds.”
Giles, who comes from private banking with Westpac in Hong Kong and is a certified financial planner, replaced Gordon Thirlwall who left OFM late last year.
“Currently I am establishing what we need to do with products and distribution after the announcement at the AGM [annual general meeting] of the company wanting to be in a different position,” Giles said.
At present OFM has around $1 billion of funds under management with the majority of monies held in bonds. The firm has also recently expanded its product offerings to include property trusts.
