Perennial delivers performance to IOOF

Ron Dewhurst

Moving IOOF’s retail distribution operation to Perennial has claimed its first causality in head of distribution Andrew Stewart.

IOOF chief executive officer Ron Dewhurst confirmed to Money Management Stewart left on Tuesday as part of the restructuring of retail distribution.

Up to six jobs in the distribution team in Melbourne are under review and the company has allowed up to $3 million for redundancies if they are taken up.

“We are offering staff the chance of joining Perennial under Brian Thomas or staying in Melbourne to work on the new platform, Pursuit,” Dewhurst said.

“The prevision of $3 million is the maximum and may not be completely taken up.”

Speaking at IOOF’s annual general meeting in Melbourne yesterday, Dewhurst said the company now had two distinct businesses — asset management run by Perennial and adviser services which consists of the platform and the merged dealer group now called Consultum.

Dewhurst confirmed some of the retail sales force for Perennial will stay in Melbourne although the operation will be controlled by Sydney-based Thomas.

At the meeting, shareholders approved the acquisition of shares in Perennial held by IOOF executive director Michael Crivelli and Perennial director Anthony Patterson.

Last month, IOOF had agreed to buy the remaining 21.85 per cent of Perennial shares it didn’t own for $67.9 million, however, it needed shareholder approval to buy the two directors’ stake in the fund manager.

Crivelli held 4,140 shares in Perennial giving him a 4.8 per cent stake and would be paid $14.9 million. Patterson had 7,335 shares which was an 8.6 per cent holding and would be paid $26.5 million.

Shareholders overwhelmingly approved the acquisition of these shares and also an additional deferred payment to these directors based on Perennial’s financial performance in the 2009 financial year.

The deferred payments could give an extra $7.8 million to Crivelli and $13.8 million to Patterson and can be paid prior to 2009 if both leave the company.

The strong performance of Perennial is continuing, giving IOOF $30 billion of funds under management and advice at the end of September.

Dewhurst told the meeting that the company was on track to deliver 15 per cent growth in earnings this financial year.

“IOOF had a strong result this year as the business continued to deliver quality earnings, develop new innovative products, and we have now re-positioned the group for the medium to long-term,” he said.