IOOF Holdings Limited (IOOF) has seen a boost in funds growth on the back of recent acquisitions and improving market conditions.
Funds under management, administration and advice (FUMAS) for the company grew $9.1bn to $116.4bn in the period ending 31 December, with the acquisitions of DKN in late 2011 and wealth management firm Plan B last year contributing to the result.
“Certainly the mergers and acquisitions landscape has never been more attractive and it continues to be so,” IOOF’s managing director Christopher Kelaher told InvestorDaily.
“We’re the preeminent mergers and acquisitions operator in the industry, so all those things bode well for the future.”
Funds under management, administration and advice grew 11 per cent to $85.5bn over the period and excluding acquisitions, FUMAS grew 10 per cent to $80.0bn.
DKN reported a 33 per cent increase on the previous corresponding period to reach $6.2m underlying net profit after tax (UNPAT) in the result to December 31.
Plan B reported $1.5m UNPAT in the three months between acquisitions and the end of the period, and IOOF said it expects recurring synergies associated with the acquisitions will reach $10m per annum from the 2014 financial year.
Mr Kelaher said that despite the result from IOOF’s acquisitions, the company would continue to focus on organic growth from its flagship products as it looks forward.
Over the 12 months to September 30 last year, IOOF’s market share for its flagship products increased to 11 per cent.
“We have a big investment in organic growth and so the focus going forward is more organic growth, hopefully lifting adviser numbers and lifting assets under management,” Mr Kelaher said.
