IOOF Holdings will merge its Global One platform with an existing offering and reduce its number of overall platforms as it seeks further cost savings.
An IOOF spokesperson confirmed that Global One, which IOOF gained through its acquisition of Skandia Australia in March 2009, would be rationalised and amalgamated with one of IOOF’s existing platforms early next year.
Global One had around $8 billion in funds under management (FUM) at the time IOOF purchased it, the spokesperson said.
The confirmation came after IOOF managing director Christopher Kelaher said at the company’s annual general meeting (AGM) on Friday that IOOF must “necessarily reduce” the number of products and services it offers to lift efficiency and performance overall.
“Presently we have eight platforms offering similar products and services. We have determined a roadmap for product rationalisation that will see these platforms reduce over time,” Kelaher said.
“We are working with the financial advisers and clients that use these platforms to ensure that any changes we make continue to meet their needs.”
Other than the Global One merger, IOOF was unable to disclose the exact number of platforms it would like to have in the future.
The company will also reduce the number of offices across each state in Australia as it seeks to cement $20 million worth of cost savings and synergies following its merger with Australian Wealth Management (AWM) in November 2008.
“We aim to significantly reduce our current office footprint over the next six to 12 months, which not only saves us money but more importantly unites our employees in common state-based locations,” Kelaher said.
IOOF announced in June that it had achieved $10 million of after tax annualised savings as at 1 May 2009, following the AWM merger.
Kelaher said at the AGM that “the majority of the cost savings have regrettably arisen from staff redundancies, particularly in the senior ranks”.
