IAM targets FY26 managed accounts launch
Income Asset Management (IAM) is set to launch two managed accounts of investment grade assets and syndicated loans in FY26, responding to adviser demand.
The first will be an investment-grade bond managed account and a multi-asset managed discretionary account.
The latter portfolio will consist of 60 per cent investment-grade assets and 40 per cent non-investment grade, primarily syndicated loans arranged by global banks. It will target a 300-bps return over the bank bill swap rate and is expected to enhance recurring revenue for IAM.
IAM said its ability to distribute bank-syndicated loan transactions is a “key competitive advantage” for the business and that its investors rank equally alongside the major banks that underwrite the deals.
In its FY25 results, chief executive Jon Lechte said: “This is a complementary extension of what we’re already doing – it doesn’t require additional spend on new hires but will add an additional recurring revenue stream. Our adviser clients have been requesting a managed account solution so we are confident we will get this initiative to scale quickly.
“Unlike typical ‘private credit’ offerings, the loans we offer our clients and will use in the MDA are lender-friendly, offer superior liquidity, and yield ~2 per cent above comparable bonds. This provides a compelling, lower-risk alternative to traditional private credit strategies, and positions IAM in the growing managed accounts segment.”
Earlier this month, it appointed former Platinum Asset Management co-founder James Simpson as a non-executive director and said he will chair its investment committee, as well as former ASIC commissioner Danielle Press.
Elsewhere, it reported $17.1 million in revenue, particularly seeing strong revenue in Q4 which was underpinned by growth in turnover and funds under advice (FUA), with bond and loan FUA reaching $2.4 billion.
Wholesale client numbers increased by 23 per cent from 2,153 to 2,640 which IAM said provides the firm with the scale to provide more consistent revenue flow in the future.
AUTHOR
Laura Dew
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