IOOF’s funds under management, advice and administration (FUA) has increased $4.2 billion to $142.7 billion over the three months to 30 September, 2019.
In an announcement to the Australian Securities Exchange (ASX), IOOF said the 3.1% increase was thanks to strong inflows from portfolio and estate administration at $396 million and financial advice at $33 million.
FUMA from financial advice was the biggest contributor at an increase of $2 billion to $57.8 billion, followed by portfolio and estate administration that grew $1 billion to $44.8billion, ex-ANZ wealth aligned dealer groups increased $573 million to $16.7 billion, and investment management grew $534 million to $23.4 billion.
IOOF chief executive, Renato Mota, said: “Our proprietary platforms continue to attract significant inflows. As an advice-led business operation an open architecture model, we are constantly benchmarking our proprietary solutions to best-in-market offerings, ensuring they meet our advisers and their client needs”.
IOOF said advice flows were positive despite industry-wide impacts affecting advice businesses such as meeting Financial Adviser Standards and Ethics Authority (FASEA) standards, additional governance and compliance requirements, and changes to fee arrangements.
“Maintaining positive inflows with the significant range of external pressures on advisers is an exceptional outcome. Client retention rates have been extremely pleasing with our advisers demonstrating the value they deliver to their clients,” Mota said.
“Having a range of best of breed platforms available, including third party platforms, ensures clients’ best interests can be met. This continues to set us apart form other participants in the industry.”
Investment management saw outflows of $166 million during the quarter. But IOOF noted investment management outflows had not taken into account reinvested distributions and unclaimed super money transfers had contributed to outflows.