From a cash broking business to sophisticated income investing solution, Income Asset Management is a turnaround success story. 

Listed investment firm Income Asset Management (ASX:INY) has come out of the blocks to be in a solid position for the new financial year with substantial growth across a number of key metrics.

IAM’s total revenue rose 728% year-on-year (YoY) to $2.03m, while quarterly operating revenue increased 37%.

The group’s operating revenue for Q1FY22 was 804% higher at $1.93m than the previous corresponding period (pcp) of $214k.

IAM is showing continued uplift in operating revenue, assets under management and debt market transactions.

Its cash on balance sheet is remaining strong and supports the group’s ongoing investment in bond trading. Cash and bonds on the balance sheet was at $12.06m for Q1FY22.

 

Focus on building a sustainable model

Wholly owned subsidiary IAM Capital Markets revenue rose 46% on the prior quarter, reflecting the group’s strong growth in primary and secondary trading. Trading volumes rose 48% quarter on quarter (QoQ).

The group had the largest arranged Debt Capital Market (DCM) for Capital Alliance Investment Group.

Fortlake Asset Management part of IAM’s fund incubation business experienced growth in funds under   with performance above benchmarks.

Meanwhile, Fortlake’s Sigma Opportunities fund was named top performing Asia Pacific Income Strategy by capital market company Preqin.

IAM’s investment in Tactical Global Markets Ltd is well placed for completion this month.

 

Targeting sophisticated and professional managers for growth

IAM recently rebranded and has seen substantial growth in the past 12 months from a cash broking business to investment solutions across treasury management, cash, bonds and asset management for sophisticated investors and professional managers.

IAM CEO Jon Lechte said the quarterly results were a significant turnaround of the business.

“All parts of the business are now contributing to our growth to ensure clients receive unparalleled access to fixed income investment opportunities,” Lechte said.

“Our support teams are striving to deliver best in class customer service across all elements of client interaction with the group.”

Lechte said the company was anticipating further growth as COVID-19 lockdowns started to ease.

“Despite the extended lockdown in Sydney and Melbourne slowing our drive towards scale as restrictions are eased, we expect to accelerate growth with new clients and a broader, more sustainable business.”

IAM’s professional fixed income investor James Shillington told Stockhead in September that recent market events helped prove out the value-add of sophisticated fixed-income strategies.

A significant bout of volatility hit the global markets in September, stemming from contagion fears around embattled Chinese property developer Evergrande.

 

Income Asset Management (ASX:INY) delivers unparalleled access to a complete income investment service. We aim to provide investors and portfolio managers with the most trustworthy and capable platform to research, execute, and manage their income investments. Our businesses across deposits, bonds, treasury management and asset management are all there to enable investors to compare, choose, and execute, in the most efficient, transparent, and cost-effective way.

This article was developed in collaboration with Income Asset Management, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

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