funds under management, advice and administration grew by $1.5 billion for the March quarter despite the $2.1 billion of net outflows, as advisers exit from the business.
The company’s results were propped up by favourable market conditions which saw a $5.4 billion lift which cancelled the $2.1 billion of net outflows from 53 advisers. The March quarter saw the company’s funds under management, advice and administration total to $203.9 billion.
The 53 advisers left the IOOFs self-employed advice businesses as envisaged under IOOF’s Advice 2.0 programme which was mentioned at their half year results. The company is expecting another 140 advisers to leave the business as part of their plans to improve the quality and sustainability of the self-employed advice model.
In the period, there was an inflow of $700 million due to organic inflows and new self-employed advisers joining IOOF licensees assisting with offsetting the net outflows. While on the investment management front, net outflows of $507 million including $469 million outflows occurred due to the AET cash product simplification.
There were further outflows in the pensions and investments business of $782m which the company acquired from ANZ Group (ASX:ANZ)
in January last year for $825 million. In the announcement, IOOF CEO Renato Mota said that they are in “advanced stages of strategic activities to address the competitiveness and outflows within some of the acquired P&I products. Further details will be provided at our full year results in August 2021”.
IOOF also provided an update on their $1.4 billion acquisition from NAB commenting that the MLC wealth business was on track to be completed by 30 June this year, subject to APRA approval.
Shares in IOOF (ASX:IFL)
are trading 0.7 per cent higher at $3.62.