The advice business of wealth management giant IOOF recorded net inflows of $33 million in the July quarter, down from the $119 million net inflows from the prior corresponding period.
However, IOOF chief executive Renato Mota said in a statement to the ASX that maintaining positive inflows with the range of external pressures on advisers was “an exceptional outcome”.
“Client retention rates have been extremely pleasing with our advisers demonstrating the value they deliver to their clients,” Mr Mota said.
IOOF also noted its Insignia Wrap range (BT badge) had continued significant growth, reaching over $6.4 billion in funds under advice.
“Having a range of best of breed platforms available, including third party platforms, ensures clients’ best interests can be met,” Mr Mota said.
“This continues to set us apart from other participants in the industry.”
IOOF’s portfolio and estate administration business recorded a $396 million net inflow over the July quarter, up from $285 million net inflow in the prior corresponding period.
Mr Mota said IOOF’s proprietary platforms continue to attract significant inflows as an advice-led businesses operating an open architecture model.
“We are constantly benchmarking our proprietary solutions to best in market offerings, ensuring they meet our advisers and their client needs,” he said.
“To this end, our ‘Evolve Project’ remains key to our on-going investment in innovation and client outcomes.
“As part of Project Evolve, in late 2018, we launched a new administration offer exclusively for Shadforth on our new technology, representing a key milestone in IOOF’s platform transformation.
“We are now seeing significant flows to this new offering.”
IOOF’s funds under management, advice and administration (FUMA) was at $142.7 billion as at 30 September 2019, an increase of 3.1 per cent, or $4.2 billion, compared with 30 June 2019.
The FUMA figure excludes Ord Minnett as the divestment was completed on 24 September 2019.
Adrian Flores is a deputy editor at Momentum Media, focusing mainly on banking, wealth management and financial services. He has also written for Public Accountant, Accountants Daily and The CEO Magazine.
You can contact him on [email protected].
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