IOOF buys into planning group
TheIOOF Grouphas expanded its focus on retail distribution with the purchase of a 50 per cent stake in Victorian based dealer group, WorkForce Financial Services.
IOOF, which currently boasts $3.2 billion in funds under management and administration, bought the stake in the planning group for an undisclosed sum.
The purchase provides access to the dealer group’s 22 financial planners operating nationally while the planners will in turn be able to tap into the larger resources of IOOF.
IOOF retail funds management general manager Richard Nunn says the partnership confirms his group’s moves into retail distribution and its focus on dealing with niche players in the planning market.
"The WorkForce partnership reflects our endeavour to expand our distribution base with business partners who have a cultural and strategic fit. There will be minimal change to either party's operating model, this is about capitalising on the resources and networks of each company,” Nunn says.
"There is no doubt that IOOF is an attractive strategic partner for boutique groups, and the WorkForce partnership highlights our appeal to these groups and growing market presence.”
Workforce chief executive Erwin Leyden says the partnership was a boost to the fortunes of the company and will open up the capital, expertise and infrastructure of IOOF, to grow the dealer group through new business avenues.
"This arrangement will open up new business opportunities for us which will ultimately better serve WorkForce's advisers and their clients. Advisers can expect some exciting developments in the near future - from both a product and business development perspective," Erwin says
News of the deal follows a busy 2001 for IOOF, in which it indicated it would start down the road to demutualisation. This would release more than $100 million to be divided up amongst its 95,000 members but allow the group to look at acquistions and strategic partnerships.
However, even before demutualising, IOOF signed a deal with the Association of Independently Owned Financial Planners (AIOFP) to provide a superannuation master trust directed at the association’s financial advisers.
The master trust will use IOOF’s administration platform for the management of the fund and in return, IOOF will take a 10 per cent stake in the master trust’s parent group, Personal Choice Management.
AUTHOR
Jason Spits
Recommended for you
ASIC commissioner Alan Kirkland has detailed the regulator’s intentions to conduct surveillance on licensees and advisers who are recommending managed accounts, noting a review is “warranted and timely” given the sector’s growth.
AMP and HUB24 have shared the areas where they are seeking future adviser growth, with HUB24 targeting adding more than 2,000 advisers to the platform.
Bravura Solutions has appointed a new chair and deputy chair to take over from departing Matthew Quinn, while Shezad Okhai picks up another responsibility.
Two advisers say M&A is becoming a “contact sport” as competition heats up to acquire attractive advice firms, while a lack of new entrants creates roadblocks in organic growth opportunities.
