IOOF Holdings Goes on a Poaching Spree


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.

IOOF Holdings Share Price

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

Selva Freigedo is an analyst with a background in financial economics. Born and raised in Argentina, she has also lived in Brazil, the US and Spain. She has seen economic troubles firsthand, from economic booms to collapses and the ravaging effects of hyperinflation, high unemployment, deposit freezes and debt default. Selva now writes from her vantage point here in Australia. She is lead Editor at the daily e-letter Markets & Money. And every week, she goes through each report and research note produced by our global network of trusted advisors to find the best investment opportunities for you in Australia and overseas. She packages these opportunities for you in Global Investor.

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