IAM to bring managed account with syndicated loan access to market

The ASX-listed manager's new managed account provides access to the institutional corporate syndicated loan market, offering an "attractive alternative" to traditional private credit funds.

The new Income Asset Management (IAM) offering provides private clients, SMSF investors, and financial advisers diversified exposure to high-quality debt with stable yields comparable to maturing ASX-listed hybrids, it said.

The focus on syndicated loans can provide stronger investor protection, rigorous due diligence, and alignment with banking syndicates in the event of restructuring or defaults, IAM said.

The managed account (MA) requires a minimum investment of $250,000 and typically hold between 10 and 15 debt issuances.

IAM head of sales capital markets Jenna Hayes said unlike private credit funds, the managed account provides exposure to corporate debt, reducing concentration risk while maintaining attractive yields.

"Unlike traditional funds, our managed accounts give investors complete transparency and control, with direct ownership of each underlying asset," Hayes said.

"This structure softens concerns often associated with pooled investments while providing all the benefits of professional portfolio management.

"Syndicated loans are a lender-friendly asset class, supported by the deep expertise of major banks, and provide an opportunity for wholesale investors to access a market typically reserved for institutions."

She believes the product is well-positioned at a time when ASX-listed hybrids are maturing.

"With billions in ASX-listed hybrids maturing in the coming years, investors are searching for alternatives that offer similar yields but better diversification," Hayes said.

"Our managed accounts can provide that, with the added benefit of institutional-style creditor protections that simply don't exist in the retail hybrid market."

Perpetual has been appointed as the standard custodian, supported by trustee services from Trustees Australia Limited.

The launch follows State Street Global Advisors and Investment Trends' recent report, revealing that close to 60% of Australian advisers are using MAs.

The sector has also seen record-breaking growth, according to data from the Institute of Managed Account Professionals, with assets increasing 23.2% to $233 billion in 2024.