In its Q1 2022 update released on Thursday, the wealth giant reported its funds under administration (FUA) increased by $1.8 billion to $222.8 billion, which has been attributed to net outflows of $0.9 billion and net inflows into its evolve-based platforms of $0.4 billion.
Funds under management (FUM) also increased by $0.6 billion to $98.3 billion as of 30 September with IOOF reporting that market gains of $2 billion were offset by net outflows of $1.4 billion.
IOOF CEO Renato Mota said FUA performed as expected for the quarter due to strong flows of the evolve platform and MLC wrap products.
“These recorded strong positive net flows as a result of growing adviser support,” Mr Mota said.
“Offsetting these gains were outflows from the acquired P&I and MLC master trust and legacy platforms.”
In response to the FUM numbers, Mr Mota said the result came on the back of some clients changing property strategies to direct investment and choosing to take their portfolio construction in-house.
“The IOOF multi series trusts continued to perform well and there is a positive momentum and mandate wins elsewhere across the direct investment business,” he said.
“Net inflows across MLC wholesale and managed accounts were driven by strong momentum into MLC’s core wrap platform offering and growing adviser support for the newly launched MLC separately managed account model portfolios.”
Restated group FUMA was also up by $2.4 billion for the quarter to $321.1 billion.
However, adviser and practice numbers were down. IOOF confirmed the total number of advisers was 1,883 as at 30 September, down 65 for the quarter, while practices in its self-employed channel have also dipped by 37 to 539.
Mr Mota said IOOF’s focus on “practice sustainability” and professional standards including the FASEA exam led to re-basing of adviser numbers.
Self-employed advisers' numbers fell to 63 which have been contributed to Lonsdale (19), Consultum (13) and M3 (10) as advisers moved to new licensees. Five others made the switch to IOOF’s self-licensed alliances model.
IOOF said the departures were “considered unsustainable for the advice strategy and associated support model”.
The results come after IOOF announced it will rebrand to Insignia Financial next month.
Neil Griffiths
Neil is the Deputy Editor of the wealth titles, including ifa and InvestorDaily.
Neil is also the host of the ifa show podcast.
