IOOF suffers decline

Funds manager IOOF Holdings Limited has reported a dramatic profit slump, with net profit from ordinary activities after tax attributable to members down 59.3 per cent for the half year ended December 31.

The company reported a profit of $5,727,000, down from $14,066 during the previous corresponding period.

IOOF said the difference between the net profit from ordinary activities after tax and the company’s underlying net profit after tax of $15.7 million reflected the accounting for the impact of the acquisition of Perennial Investment Partners and a net liability revaluation due to accounting standards treatment.

IOOF chief executive, Tony Robinson said the underlying result demonstrated that the core businesses were operating strongly across the group in a climate characterised by increasing market volatility.

He said the fundamentals of the business were sound with solid foundations now established to pursue growth opportunities.

“However, as we have previously outlined, IOOF as with the rest of the wealth management industry, is obviously impacted by continued market volatility,” Robinson said. “In this climate, we remained focused on building our internal capacity across the group to maintain our performance.”