What has IOOF Holdings share price done?
Shares of IOOF Holdings Limited [ASX:IFL] gained over 3.15% today.
Why did IFL shares rise?
IOOF has gone on a poaching spree…for financial advisers.
As reported by The Australian: ‘Managing director Chris Kelaher said strong fund flows would continue after a cohort of about 50 advisers joined, bringing with them $154m.’
Kelaher has shrugged off requests to find out where the advisors came from, as he is expecting that more will be coming on board.
Shares went from trading $8.49 yesterday to $8.82 today.
The truth is that IOOF shares have had a rollercoaster of a year, with shares fluctuating between $9 down to almost $7.50, as you can see in the graph below.
Source: Market Index
IOOF is one of Australia’s largest financial services company and has been operating since 1846. Services include personal superannuation, allocated pension services, employee superannuation retirement services, and investment services.
As of 31 March, 2016, it managed more than $131 billion of client monies.
What now for IOOF Holdings?
IOOF has been able to keep its adviser network the same size in recent years, and is planning to keep on poaching more from competitors.
Shares tumbled last February when the company announced declining profits across all divisions.
Yet Kelaher told The Australian that fund flows continue to be strong, and ‘there is no risk that it won’t turn into profits.’
By Selva Freigedo