IOOF falls short on investment management

By Taylee Lewis
 — 1 minute read

While wealth management firm IOOF maintains its growth momentum, its investment management arm remains a work-in-progress, says Morningstar. 

According to a Morningstar report, IOOF achieved solid growth in funds under management and advice (FUMA) across all divisions in third-quarter of 2015.

However, IOOF is yet to mitigate the outflow in investment management.


“While IOOF benefits from a vertically integrated business model, with its adviser network and platforms providing a strong distribution channel, Perennial continues to experience institutional redemptions,” the report said of IOOF’s investment management subsidiary.

Perennial needs to improve performance in order to halt the loss of mandates and rebuild confidence, it found.

“With rising equity markets increasing demand for active assets managers, IOOF has to some extent missed some of this turnaround.

“IOOF continues to receive strong demand for fixed investments, but these attract lower fees.

“Excluding recently acquired Shadforth Financial Group, investment management has suffered net outflow of $801 million in the first nine months of fiscal 2015,” the report found.


IOOF falls short on investment management
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