IOOF hurt by investment markets
A tumultuous 12 months in financial markets has seen IOOF achieve an underlying net profit after tax of $25.9 million, representing a 12 per cent decrease on the previous year’s results.
Attributing this to a significant reduction in fund balances as a consequence of falls in investment markets, IOOF chief executive Tony Robinson pointed out that from an operational perspective, 2007-08 had been a successful year.
Contributing to this was the strong investment performance of Perennial Investment Partners, which IOOF partly owns, with gross retail sales up 40 per cent from last year’s results, delivering 47 per cent of IOOF’s underlying earnings before interest, tax, and amortisation expenses (EBITA).
IOOF’s administration and advice business, Portfolio Solutions, was also valuable in driving revenue, contributing 56 per cent to the underlying EBITA.
However, dealer group Consultum, which IOOF fully owns, was a cost centre for the group, contributing -7 per cent to the underlying EBITA.
Commenting on the group’s performance, Robinson said the year started robustly with strong funds growth but recorded a “less satisfactory” finish, with fund balances falling in the second half.
“We believe we are in a position which enables us to benefit when the investment returns once again positively contribute to growth in fund balances,” he said.
Recommended for you
Financial advisers are reminded to ensure their CPD is up to date with the Financial Services and Credit Panel making its second determination in a week after an adviser failed to meet the requirements.
An adviser has received a written reprimand from the Financial Services and Credit Panel after failing to meet his CPD requirements, the panel’s first action since June.
While efficiency remains a top priority for Australian advisers, State Street has revealed the profession is now juggling this desire with the need to maintain personalisation of its service offering.
A possible acquisition of data provider Iress is becoming a greater likelihood after the firm announced it is engaging with multiple interested parties.
