In an ASX statement issued on Wednesday, Income Asset Management Group Limited (IAM Group) announced it had sold its term deposit broking business to Perpetual Corporate Trust (PCT), a division of Perpetual Limited.
The sale of the business to PCT is effective 1 October 2025.
As part of the transaction, IAM Group stated that PCT would employ four members of the IAM team who have been instrumental in building the deposit book over the past four years.
“This ensures existing clients will have a seamless transition to PCT and continuity of their relationship manager. At the time of this announcement, IAM’s term deposit platform manages $1.58 billion in client funds,” IAM Group said in the ASX statement.
“The term deposit business has reached a scale that requires further investment in technology and marketing to drive continued growth. Given the highly competitive, low-margin nature of the deposit broking market, IAM has determined that such investment would be better suited to an operator of greater scale.”
With over $8 billion in deposit and fixed income funds under administration and a strong technology platform, IAM Group said PCT was well positioned to take the term deposit broking business forward.
IAM Group said the business was sold to PCT for a nominal amount but is expected to lead to cost savings for the group, with the term deposit broking business currently generating a $400,000 loss.
“IAM’s savings include not only the current loss-making amount but further additional costs likely required over time if it maintained this asset,” the group said.
The completion of the sale will also mean reduced business and cyber security risk, it said, as it will no longer own and operate a technology solution that is now sub-scale.
It noted that PCT had already invested in its scale and technology to fulfil the needs for cash-based clients.
“IAM would have to spend more capital over time when interest rates are expected to fall and therefore margins likely compress.”
Given the minimal crossover between the term deposit broking business and IAM’s core bond and loan offering business, IAM said the sale would have a “negligible impact” on its core business.
