Bendigo Bank set to sign IOOF for funds management
IOOF is poised to sign a deal to provide all of Bendigo Bank’s fund management operations, including product development.
Money Managementunderstands that the deal could be signed as soon as this week and would be implemented almost immediately.
The deal has been on the cards for some time but was only made public for the first time within the pages of the IOOF demutualisation proposal document. According to the document, the deal will result in IOOF providing “funds management expertise, products, administration and asset management services” to the Victorian based banking group.
IOOF senior management would not comment on the details of the deal, stating they already have an ongoing relationship with the bank.
As part of the deal, IOOF has sold back to the bank its 50 per cent stake in Bendigo Investment Services, the financial planning joint venture it conducted with the bank.
In a separate move, IOOF has also created a technical support division for dealer groups called Australian Financial Planning Network. The new division will be headed up by Scott Monotti who previously ran the dealer support systems for Zurich.
IOOF has also recruited another Zurich senior manager, George Fellows, to head up its Winchcombe Carson financial planing arm. Fellows was previously southern regional manager with Zurich.
IOOF is holding its demutualisation meeting on June 14 and plans to list within the next two years if the proposal is approved by its membership.
Members of the friendly society will receive shares as part of the proposal. IOOF managing director Rob Turner says the average member will receive about $1,000 worth of shares as part of the formula based on funds invested with the society.
The demutualisation report, produced by KPMG Corporate Finance, has also given a fair indication on how IOOF is tracking in the current financial year. The friendly society normally doesn't issue half-year results.
According to the report, IOOF made an after-tax profit of $11.5 million, which compares favourably with the $8.1 million profit for the full 2001 financial year.
The fund manager now has $3.3 billion of funds under management and $1.8 billion of funds under advice at the end of December last year.
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