IOOF has reported a significant improvement in its funds under management, administration and advice, following diminished profits in the half-year to December 2016.
Yesterday IOOF announced its 2017 financial result, with underlying net profit after tax of $169.4 million, net inflows of $4.6 billion and a $10.6 billion year-on-year increase in FUMA.
The result is in stark contrast with February 2017's numbers, when divestments in IOOF's financial advice channels led to a 45 per cent decrease in statutory net profit after tax.
IOOF managing director Christopher Kelaher said the more positive result was an endorsement of the institution’s “advice-led strategy” and “non-bank-aligned” structure.
“Meeting our commitments to clients, advisers and shareholders has delivered this strong financial result,” Mr Kelaher said. “With our advice-led strategy, there is positive momentum in each of our businesses.
“Our multi-brand model and unique open architecture makes IOOF an extremely attractive alternative for advisers looking to partner with a non-bank-aligned dealer group.”
The company reported a 131 per cent year-on-year increase in advice net inflows, with $3.0 billion in total advice net inflows for the 2017 year, primarily attributable to the recruitment of 33 financial advisers.
Mr Kelaher singled out growth in IOOF’s financial advice channels and platforms business as a key driver of growth and a differentiator from other financial institutions
“Our adviser numbers are growing, which appears to be counter to industry trend. Flagship platform net inflows of $1.2 billion demonstrate that service excellence results in significantly increased flows,” he said.
“Supported by positive industry fundamentals and demographic trends, IOOF’s unique positioning in the industry sees us well placed to deliver positive long-term outcomes for our advisers, their clients and our shareholders.”