Income Asset Management increases fund size to $ 1.8 billion and new clients increase by 60%

Special report: The significant increase in funds will allow Income Asset Management to continue to grow.

Listed investment firm Income Asset Management (ASX: INY) saw its funds under advice (FUA) jump to $ 1.8 billion thanks to a 60% increase in new clients.

The increase in new client signings follows IAM Group’s unmistakable presence in the fixed income market, growing FuA 73% to over $ 600 million.

Next door, the IAM Capital Markets, Bond and Debt Capital business units recorded a 60% increase in new active accounts as of November 30.

These figures are a critical step in developing the Group’s primary and secondary trading revenues in order to reach a scale that will allow it to become profitable.

With the increase in customer base and the entry into the market of a strong new pipeline of debt capital of over $ 200 million, the company now expects revenues to continue growing over the course of the year. of the new year.

“The ability of the IAM team to provide transparency, liquidity and cost-effective access to the fixed income market drives growth,” said 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 is available elsewhere.”

Rapid growth for IAM Group

The Income Asset Management group has experienced considerable growth over the past 12 months. For the first quarter of fiscal 22, total revenue increased 728% year-over-year to $ 2.03 million, while quarterly operating revenue increased 37%.

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

Fortlake recently signed additional mandates, bringing funds under contract management (FUM) to over $ 1 billion in its first year of operation.

From their inception until October 31, Fortlake Asset Management funds have simply outperformed.

Check it out:

  • The Sigma Opportunities fund with a return of 15.75%
  • The Real-Higher Income fund, 10.87%
  • and the real income fund, 7.46%.

During this period, IAM Group also finalized its 25% investment in FUM Tactical Global Management (TGM) of $ 31 billion, while CEO Jon Lechte joined TGM’s board of directors.

Building on these successes, the company says it is on track to reach 700 customers by the end of the year and 1,000 active customers by early 2022.

“As we approach 2022, we are very confident that we will generate additional revenue from sales,” said Lechte.

“The increase in revenue largely matches increased customer growth, with a lag in onboarding and engaging customers. “

“The larger scale in secondary trade and this improved liquidity will also open up more opportunities,” adds Lechte. “For our clients with new issues of corporate bonds, private debt and listed securities as well.

This article was developed in conjunction with Income Asset Management, an advertiser for Stockhead at the time of publication.

This article does not constitute advice on financial products. You should consider getting independent advice before making any financial decisions.

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