Perennial’s star performance boosts IOOF
Perennial emerged as the stand-out performer within the IOOF Group, increasing wholesale funds under management by 50.2 per cent to $15.4 billion, according to IOOF chief executive officer Ron Dewhurst.
Announcing IOOF’s results this week, Dewhurst said retail net inflows of $786 million were “in line with expectations” during the 2005-06 financial year.
The strong net inflows of $427 million were for Perennial products, while closure of some AM legacy products produced outflows of $177 million.
“We have closed some AM legacy products that were no longer viable and that has impacted retail funds under management,” he said.
However, a number of IOOF legacy products are still being kept due to slow outflows and good earning capacity for the fund manger because of the historic fee structures.
Dewhurst said rationalisation of AM legacy products will continue in the 2006-07 financial year.
Retail funds under management grew by 14.5 per cent during 2006 to $7.1 billion and funds under administration were up 9 per cent to $6.4 billion.
The star performer was Perennial, increasing wholesale funds under management by 50.2 per cent to $15.4 billion.
Dewhurst said the 2006 year was one of laying the foundations for further growth in the next 12 months.
“We have been consolidating the value proposition to build the business,” he said.
“Now we have a sustainable platform for growth and I am confident in 2007 we will be competitive in the marketplace.”
The AM platform will be relaunched next month under the name Pursuit. Dewhurst would not give away any details other than that the fee structure will be designed to match balances on the platform.
More than $1 million has been spent on its development.
“Our desire is to increase market penetration with Pursuit and improve IOOF relevant to the independent adviser,” he said.
The merged Winchcombe Carson and Financial Partnerships will be rebranded as Consultum Financial Advisers and Dewhurst said there will be a concerted push to attract more advisers to the group. Currently the merged entity has about 120 advisers.
While acquisitions are still on the cards, Dewhurst said creating new areas of business, such as the Perennial Real Estate funds management team, was an indication of how the company wanted to grow.
He would not say how much start-up funding or costs had gone into starting the real estate business, but in August the team achieved $1 billion funds under management.
“One thing we won’t be doing in the future is taking on a MLC or AMP head-on,” he said.
“We recognise we have a niche position and we are careful to retain our niche status.”
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