Investors Central set to boom on national stage

A small investment firm established in Townsville five years ago is on track for record growth nationally heading into the new financial year.

Investors Central which posted gross profit of over $1.7 million in the January to March quarter 2015, experienced a 44 per cent increase in investors in the 12 months to June 2015 and things aren’t slowing down according to Managing Director Jamie McGeachie.

“The state of Australia’s credit and investment markets have really created the perfect platform for the business to boom.

“Australia’s decreasing rates market, talk of a housing bubble, the volatility of global shares on the back of the Greek debt crisis, have all combined to create the perfect consumer market for our business,” he said.

June saw the Australian share market fall 6.2 per cent, the biggest monthly loss this financial year, and a decline in international share markets saw global indices fall 2.5 per cent.

While Reserve Bank Governor Glenn Stevens has said he does not anticipate any direct impact for Australia from the Greek debt problem, McGeachie acknowledges the wider implications for the European Commission are weighing heavily on investor sentiment.

“In Australia we have a growing number of high net worth individuals and since the GFC a strong culture of private and national saving.

“This has led to a greater interest in investments with less exposure to risk,” he said.

An unlisted public company that raises capital to invest exclusively in the national automobile loans market, Investors Central is immune to rate cuts and has achieved strong growth in both revenue and profit on the back of sustained growth in national vehicle financing since 2010.

McGeachie credits a decreasing rates market to helping fuel the growth of the business and he isn’t alone.

A recent IBISWorld report suggests funds management services are set to boom in 2015-16 on the back of low interest rates, with Australian banks accessing wholesale funding at cheaper rates pushing customers away from traditional Fixed Term Deposit accounts.

According to McGeachie, the typical first time investor with Investors Central is depositing $25,000 – $100,000 for a term of 3 years with 98 percent of those investors rolling over into a second term.

“As part of a diversified portfolio, investors are attracted to our fixed term investments ranging from 12 to 60 months with fixed returns of between 9 and 16 per cent.

“Our strict no fees or charges policy is also setting us apart in the investment industry,” he said.

The fixed term deposit preference shares available through businesses like Investors Central provide benefits that other asset classes don’t, including certainty and a guaranteed interest rate over that period.

The highest advertised fixed rate investment for $25,000 over a three year period with an authorised deposit taking institution likes banks, according to Canstar is currently 3.3 percent compared to 11 per cent with Investors Central.