Speaking to InvestorDaily, IOOF managing director Chris Kelaher said the integration of Shadforth Financial Group has been undertaken in less than two years.
“There are several hundred advisers there and almost the same amount of back-office staff,” Mr Kelaher said, “so to successfully integrate them – and above all, hold onto the client and the assets under management – is no mean feat.”
On the investment management side, IOOF has shifted gears to focus on its multi-manager business, with the sale of two Perennial boutique fund managers to Henderson Global Investors in June 2015.
“We’re interested to move away from that institutional fund flow into that Perennial-style business where there is also obviously a risk of a ‘star man’ risk,” Mr Kelaher said.
“[Multi-manager funds] are something that’s less volatile in terms of institutional inflow and outflow and it’s essentially lower maintenance,” he said.
“It’s more flexible as well. If we want to change a manager we look and review and form a view, and then we do it.”
IOOF saw inflows of $1.8 billion across its platform business during 2015-16.
“The stand-out event for us in platforms was that we were able to see one of the largest platform consolidations done locally, moving our TPS platform into our Pursuit platform,” Mr Kelaher said.
“Clearly, when you do that you save money and you heighten efficiencies. So on top of the excellent flow number, that consolidation which is relatively unparalleled by our peers in the sector, has been very good,” he said.
IOOF also weathered an investigation into its business by ASIC along with a independent review of the firm’s compliance procedures by PwC.
Allegations of insider trading and front-running aired by Fairfax Media ultimately resulted in ASIC deciding it would take “no action” on the matter.
“All of the recommendations from [PwC] have been implemented. Basically it was a fairly straightforward exercise upon review. That’s very much behind us, and ASIC provided a bookend with their commentary of no action,” Mr Kelaher said.
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