47 advisers join IOOF to boost FUMA

The advice-led nature of the IOOF business has succeeded in attracting new advisers and providing a foundation for strong fund flows, according to IOOF managing director, Christopher Kelaher.

In doing so, he pointed to 47 advisers having joined IOOF from another licensee which helped push funds under advice to $1.6 billion.

In a statement attaching to an IOOF announcement to the Australian Securities Exchange (ASX) noting positive net flows of $895 million in funds under management, administration and advice (FUMA) for the second quarter of the current financial year, Kelaher said the company had also recorded its 20th consecutive quarter of positive platform inflows.

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“IOOF’s advice-led business model, best exemplified by our use of open architecture, distinguishes us from our peers,” he said. “Being advice-led attracts advisers and provides the foundation for our strong flows.”

The IOOF statement said advice flows stood at $696 million for the quarter (up 29 per cent) with total funds under advice from the 43 advisers who joined the Group from another licensee now at $1.6 billion with a further four advisers from the same licensee joining in January.

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This article and marketing hype with it fails to add one key point - the adviser growth came because IOOF snared the former rainmaker and adviser advocate from Meritum who got paid lots of money to bring the advisers with him and many followed because Meritum is now more than ever a terribly mismanaged business. So congrats to IOOF for selective pouching and having a terrific bonus payment scheme - an achievement to be proud of!

$895mill / 47 advisers = $19mill per adviser average. Pah, sounds like a lot of work with small operators. And before anyone contradicts with that's just the FUMA for IOOF and doesn't count any external platforms or investments, even if you double it to $38mill/adviser it's still singularly unimpressive.

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