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Income Asset Management posts 29pc jump in assets to $3.5b

ASX News, Finance
ASX:IAM      MCAP $24.64M
21 February 2024 12:00 (AEDT)

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Income Asset Management (ASX:IAM) has posted its half-yearly results, logging a 29 per cent growth in Assets under Administration (AuA) versus 1H FY23.

Total assets now stand at nearly $3.5 billion while client growth clocked in at 71 per cent year-on-year (YoY) as of 31 December 2023 with 1743 participants now on IAM’s books.

Cash and bond loans have grown from <$1 billion to $3.5 billion, IAM highlighted in its report posted Wednesday.

Total transactions in dollar volumes were $1.43 billion across 3522 trades.

IAM first began offering bond sales to its clients in early October of 2023 through a partnership with peer Netwealth.

All in all, the company now offers more than 300 bond products in what IAM said at the time was a net win for the Australian financial adviser market broadly.

Busy year ahead

A further “marketing initiative” through Netwealth is set to kick off later this month. What that is remains somewhat unclear, though there’s a hint in the company’s presentation slide titled ‘Revenue and cost modelling.’

A footnote reads: “We have invested in fixed-income specialists who will begin shortly to cover the expanded client numbers largely sourced through Netwealth.”

A new team of business writers are also to commence in Perth, Sydney and Brisbane.

Half-year revenue, however, was lower by around $700,000 – though, this has to do with one large transaction made in FY23, IAM noted on Wednesday.

“With $3.5bn in AuA in a very short period, we are scaling rapidly,” the company summarised.

IAM also sees further growth in its cash deposit business resulting in direct flows straight to earnings.

Income Asset Management shares last traded at 6.5 cents.

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