Yellow Brick Road has announced its official entry into funds management after hinting at the move in September.
YBR announced it has signed a shareholders' agreement with Coolabah Capital Investments which the company said will enable it to internally manufacture funds management solutions. The deal will see Yellow Brick Road establish a new entity, YBR Funds Management, which YBR said will see it develop a range of "low-risk, high return, high liquidity, enhanced cash, variable and fixed income solutions".
YBR chief executive Matt Lawler told Australian BrokerNews in September the company would launch an investment product in conjunction with the premiere of Celebrity Apprentice, hosted by chairman Mark Bouris.
"We’re seeing a lot of money flowing into the savings area, and giving people choices in that area is what we’re all about, whether it’s retirees spooked by the share market, people sitting on the sidelines looking for the property market to recover or people trying to build up a deposit for a house. We’re looking to launch alternatives in the savings market and the term deposit cash market. We think there’s an opportunity to give Australians a better deal. Part of what we do is deconstruct the market to see if there’s the opportunity to provide better value," Lawler said.
The company's new entity, YBR Funds Management, will be headed by Lawler, YBR head of product development Scott Walters, Yellow Brick Road’s Head of Product Development, Coolabah Capital chair Darren Harvey and economist Christopher Joye.
"With the investment talent assembled within YBR Funds Management, together with our growing brand and strong distribution network, we look forward to the imminent release of Yellow Brick Road’s first funds management products for Australian savers and investors through Yellow Brick Road’s national branch network," Bouris said.