IOOF shares lift despite posting profit fall as inflows surge

Wealth management firm IOOF has seen net inflows more than double as it booked a fall in full-year net profit.

IOOF Holdings Managing Director Christopher Kelaher at the companies office in Melbourne. (David Geraghty/The Australian)

Wealth management firm IOOF has seen net inflows surge 156 per cent as it posted a 16 per cent drop in full year net profit to $116m.

The $4.6 billion of net inflows included $976m from 33 new advisers joining the firm, and drove funds under management, administration and advice (FUMA) to $115bn.

“During the year, we achieved outstanding funds growth, exceptional cost control and our underlying performance metrics are on an upward trajectory,” managing director Christopher Kelaher said.

“Our adviser numbers are growing, which appears to be counter to industry trend. Flagship platform net inflows of $1.2bn demonstrate that service excellence results in significantly increased flows.

The drop in statutory net profit included an impairment charge the company announced at the end of July relating to its holding in Perennial Value Management. Underlying net profit slipped 1 per cent to $169m, beating analyst estimates.

In announcing the results, the wealth management firm flagged its acquisition ambitions amid industry consolidation.

“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. As the industry continues to consolidate, there is ample opportunity for acquisitive growth to augment our significant organic growth momentum.”

The company (IFL) declared a final dividend of 27c per share, fully franked, bringing the full year dividend to 53c.

At 10.52am (AEST), IOOF shares had risen almost 7 per cent to $10.78.