Income Asset Management Posts Record Q4 Revenue and 27% Growth in Funds Under Advice

Strong Financial Performance Caps FY2025

Income Asset Management Group Limited (ASX, IAM) has closed out FY2025 on a high note, posting its strongest quarterly revenue to date with $5.4 million in Q4. This milestone underscores the firm’s growing footprint in the Australian asset management sector, driven by a 27% year-over-year increase in funds under advice (FuA) to $2.4 billion and a 23% rise in client accounts to 2,640.

Alongside revenue growth, IAM reported a net positive operating cash flow of $634,000 for the quarter, a notable achievement that eliminates the need to estimate future funding availability. The group’s liquidity position remains strong, with $6.3 million in net cash and an additional $0.9 million in liquid bond holdings, totaling $7.2 million in readily accessible assets.

Operational Enhancements and Cost Management

A key operational highlight for IAM was the completion of its transition to Perpetual Corporate Trust (PCT) for custody holdings and administration. This move has expanded the group’s capacity, enabling it to execute over 3,000 trades in the quarter, up 43% compared to the same period last year. Turnover surged to $1.76 billion, a 79% increase from the previous quarter and more than double that of Q4 FY2024.

Cost discipline remains a priority, with IAM having already removed approximately $3 million of a targeted $4 million in cost reductions. The group aims to complete this cost-out program in the first quarter of FY2026, which should further enhance profitability and operational efficiency.

Robust Debt Capital Markets Activity

The Debt Capital Markets division continues to demonstrate resilience and growth. During Q4 FY2025, IAM’s Capital Markets team led several significant primary transactions, including a $175 million five-year mezzanine note for One Rail Australia and $50 million in primary loans to private credit investors. The team also bid for over $1 billion in externally originated new issues, securing allocations of approximately $580 million.

This strong deal flow reflects ongoing demand not only from direct issuers but also from banks and advisory groups seeking distribution and syndication capital, positioning IAM well for sustained activity in this segment.

Outlook and Governance

While all FY2025 figures remain unaudited, the board’s approval of this quarterly report signals confidence in the group’s trajectory. Related party payments, including directors’ fees and salaries, were disclosed transparently, adhering to governance standards.

Looking ahead, the completion of cost reduction initiatives and the continued expansion of client accounts and FuA will be key metrics to watch. The firm’s strengthened liquidity and operational platform provide a solid foundation for navigating the evolving financial services landscape.