IAM announces partnership with Perpetual for cost savings and revenue growth

Income Asset Management Group Limited (IAM:ASX) has announced its partnership with Perpetual Corporate Trust, aiming to achieve over $4m p.a. in cost savings and introduce new annuity revenue from Q3 FY25. This strategic move is expected to enhance client experience, improve investment administration, and drive cashflow positivity once fully implemented, marking a significant inflection point for IAM.

Executive Commentary on Partnership and Growth Strategy

Jon Lechte, CEO of IAM, emphasized the material impact of the partnership, stating, 'This announcement will drive a significant reduction in costs, reduced operational risk, improved client services, and increased annuity revenue. We have built the scale of our FUA through IAM Capital Markets to ~$2b and over ~2,000 clients in only three years, enabling us to utilize this game-changing external administration with Perpetual.' Lechte also expressed confidence in Perpetual's capabilities and the potential for a fast transition, highlighting the strength of the partnership.

Summary of Partnership and Future Outlook

IAM's partnership with Perpetual is set to deliver substantial cost savings, improved client services, and the introduction of new annuity revenue from Q3 FY25. The transition to a singular platform partner is expected to streamline operations, reduce risk, and enable more efficient allocation of resources, driving cashflow positivity by the end of FY25. With a focus on growth, IAM aims to continue onboarding clients, remove reliance on multiple custody partners, and launch Single-Bond ETFs in Q2 FY25. The company's ambitions include delivering profitable growth, expanding the Fixed Income sector, and leveraging the partnership to win more clients and defensive assets. IAM's strategic move aligns with its goal to provide investors, advisers, and portfolio managers with a capable platform for income investments, positioning the company for continued success in the future.