The IOOF Holdings Limited (ASX: IFL) share price hit a 52-week high of $10.05 today after the investment administration and funds management group posted a strong quarter ending June 30 2017.
IOOF's core business is funds administration for retail clients via its adviser networks and platforms, with the group posting $2.2 billion in net flows for the quarter ending June 30 2017.
The margin on funds-under-administration is far slimmer than on actively managed funds under management, although its investment management business also posted net inflows of $157 million over the quarter.
Much of the growth across its advice business is the result of picking up additional new advisers with IOOF's CEO commenting: "Our advice-led strategy, multi-brand model and unique open architecture makes IOOF an attractive alternative investment for advisers looking to partner with a non-bank aligned dealer group".
IOOF also operates a trustee services business including responsible entity services and individual or family estate planning.
The business has the tailwind of Australia's ever-growing superannuation sector and growing baby boomer wealth, with competitors such as Perpetual Limited (ASX: PPT) or AMP Limited (ASX: AMP) in the sector.
IOOF shares are up 64% over the past five years and it offers a trailing 5.4% dividend yield plus the tax effective benefits of franking credits.
