Income Asset Management Group Limited (IAM:ASX), a company that aims to provide investors, advisers, and portfolio managers with a capable platform to research, execute, and manage their income investments, has announced the sale of its Term Deposit Broking Business to Perpetual Corporate Trust (PCT). The sale, effective October 1, 2025, is for a nominal amount but is expected to generate substantial cost savings for IAM. Currently, IAM’s term deposit platform manages $1.58 billion in client funds.
The decision to sell the term deposit business was driven by the need for further investment in technology and marketing to sustain growth in a competitive, low-margin market. IAM determined that PCT, with over $8 billion in deposit and fixed income funds under administration and a robust technology platform, is better positioned to take the business forward. As part of the transaction, PCT will employ four members of the IAM team, ensuring a seamless transition for existing clients and continuity of their relationship manager.
The sale is projected to eliminate $1.4 million in annual costs and a $400,000 net loss-making business, contributing to IAM’s previously announced cost-out initiative. It will also reduce expected restructuring costs, as PCT will assume the entitlements of the transferring staff. IAM anticipates reduced business and cyber security risks by relinquishing ownership of a sub-scale technology solution. The impact on IAM’s core bond and loan offering business is expected to be negligible, given the historically low cross-over between the two books.
The transaction is expected to foster broader benefits from the IAM/PCT relationship, enhancing IAM’s core activities in bonds and loans. This includes growing IAM’s annual recurring revenue from its revised client custody model connected to its bond and loan offering. This announcement was approved for release by the IAM Chair.
