Fund flow data has revealed the adverse impacts being felt by IOOF Limited as it seeks to navigate the consequences of the Royal Commission and legal action initiated by the Australian Prudential Regulation Authority (APRA).
The company has revealed net inflows of $337 million in funds under management, administration and advice for the third quarter of the current financial year, well down on the prior corresponding period.
It said financial advice net inflows were $263 million for the quarter compared to $736 in the prior period, while portfolio and estate administration flows were $183 million compared to $346 for the prior period and investment management actually recorded a net outflow of $129 million, compared to $47 million in outflows in the prior corresponding period.
Commenting on the data, IOOF acting chief executive, Renato Moto said it was pleasing to see continued positive flows into the company’s proprietary platforms despite the challenging market conditions.
“In an extremely competitive environment, subject to much uncertainty, it is a credit to our people and advisers that we continue to support advice through our products and services,” he said.
Mota noted that financial advice had recorded positive flows for the quarter in line with the previous trend and that IOOF’s Insignia Wrap range (BT badge) had seen significant inflows and had reached over $3 billion in funds under advice.
The IOOF announcement reiterated the company’s forecast of expected revenue impacts of approximately $3 million for the removal of exit fees in addition to other Protecting Your Super measures of $5 million.
Add new comment