The wealth giant’s FUMA was $145.7 billion at 31 December, an increase of $7.2 billion compared to 30 June. IOOF’s FUMA ended June on $138.5 billion, staying steady on its $137.8 billion at the end of 2018, according to a statement to the ASX.
For the four months leading to 31 December 2019, IOOF reported its highest quarterly net inflows in a year and a half at $1.2 billion, which mostly consisted of a significant boost in money coming in from the advice segment.
There was a $939 million net inflow for advice during the December quarter, compared to the division a year before copping a $295 million net outflow.
IOOF’s advice business ended 2019 on $76.6 billion in FUMA.
The boost came from 11 new advice practices being onboarded during the quarter. IOOF said it was able to grow the section despite “ongoing industry-wide reform” with advisers being affected by FASEA standards, additional governance and compliance requirements and changes to fee arrangements.
“Our ability to attract the right advice practices to our proposition is a function of our commitment to our advice-led strategy and to the value this offers to financial advisers looking for support and insights.,” said IOOF chief executive Renato Mota.
“This is underpinned by an open architecture product model together with business systems and support in pursuit of better advice outcomes, delivered more efficiently.”
The investment management business however suffered a $145 million net outflow during the quarter, but it was a slight improvement on the prior comparative period’s $186 million net outflow.
The division ended December on $23.6 billion in FUMA.
IOOF reported while other investment products saw outflows, its MultiMix and MultiSeries range of funds saw money coming in.
In portfolio and estate administration, there was was a $360 million net inflow, down on the $403 million net inflow in the 2018 December quarter. The segment ended December on $45.5 billion.
Mr Mota commented the result reinforces the importance of scale for its proprietary platforms.
“Our platform transformation (Project Evolve) remains on track for completion at the end of 2021,” he said.
“This project has seen the successful development of a contemporary range of both bespoke and broad market offers for advisers and their clients. By working closely with advisers and licensees we have built solutions that enhance advisers’ ability to serve their clients while building greater operational efficiency into our own business.”
When are you going to do an article on IOOF trying to get rid of business owners and make them salaried advisers or see you later???