Special Report: The significant increase of funds will see Income Asset Management continue to grow.

Listed investment firm Income Asset Management (ASX:INY) has seen its funds under advice (FUA) jump to $1.8bn on the back of a 60% increase in new clients.

The surge in new client signatures follows IAM Group’s undeniable presence in the fixed income market, growing FuA by 73% to over $600m.

Next door, the IAM Capital Markets, Bond and Debt Capital business units have seen a 60% rise in new active accounts to 30 November.

These numbers are a critical milestone to developing the Group’s primary and secondary trading revenue to reach a scale that will allow it to move to profitability.

With the increase in clients and a solid new debt capital pipeline of over $200m coming to market, the firm now expects to see revenue continue to grow well into the new year.

“The ability of the IAM team to provide transparency, liquidity and cost-effective access to the fixed income market is driving growth,” says CEO Jon Lechte.

“This recent level of client engagement has taken us to a higher level of secondary trading, providing clients with greater liquidity than what is available elsewhere.”


Rapid growth for IAM Group

The Income Asset Management Group has seen tremendous growth over the past 12 months. For FY22 Q1, total revenue rose 728% year-on-year (YoY) to $2.03m, while  quarterly operating revenue increased 37%.

Fortlake Asset Management, which is part of IAM Group’s fund incubation business, experienced significant growth in funds well above benchmark performance.

Fortlake has recently signed additional mandates, driving contracted funds under management (FUM) to over $1bn within Year One of operations.

Since inception to 31 October Fortlake Asset Management funds have simply outperformed.

Check it out:

  • The Sigma Opportunities fund returning 15.75%
  • The Real-Higher Income fund, 10.87%
  • and the Real-Income fund, 7.46%.

During this period, IAM Group also completed its 25% investment in the $31bn FUM Tactical Global Management (TGM) while CEO Jon Lechte joined the TGM Board.

Off the back of these successes, the company says it’s on track to reach 700 clients by the end of the year, and 1000 active clients by early 2022.

“As we approach 2022, we are highly confident of writing additional revenue from turnover,” says Mr Lechte.

“The revenue uplift is largely matching the increased client growth, with a lag to onboard and engage the clients.”

“The greater scale across the secondary trading business and that improved liquidity will also open up more opportunities,”Mr Lechte adds. “For our clients with new issues of corporate bonds, private debt and listed securities too.”

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.