IOOF (ASX:IFL) share price on watch after second quarter update

Here's why the IOOF Holdings Limited (ASX:IFL) share price will be on watch on Thursday morning…

| More on:
hand restin g on laptop computer keyboard with stock prices on screen

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The IOOF Holdings Limited (ASX: IFL) share price will be one to watch this morning.

This follows the release of the financial services company's second quarter update.

How is IOOF performing?

It was an eventful second quarter for IOOF, with Funds Under Management, Advice and Administration (FUMA) falling $0.4 billion to $202.4 billion at the end of December.

Management advised that this reflects an uplift of $12.7 billion in FUMA due to market movements, which was offset largely by one-off negative movements of $10 billion.

These negative movements include $8.1 billion from the termination of the BT relationship, $1.5 billion from the liquidation of IOOF's Cash Management Fund, and a $0.4 billion one-off transfer from the Cash Management Trust.

IOOF's Chief Executive Officer, Renato Mota, also revealed that the company was impacted by the Early Release of Super (ERS).

He said: "This quarter has seen ongoing impacts of ERS, especially the final opportunity for early access. As well, we have experienced the ongoing impacts of COVID, including client concern and uncertainly around ongoing and potential economic impacts. Our ClientFirst approach has been invaluable in ensuring that our clients have the support that they need during times of significant uncertainty."

Nevertheless, the strong market performance helped offset much of this to leave its FUMA down only slightly for the three months.

"There has been strong market performance over the quarter and as a result of the scale and diversity of our business, the market contribution of $12.7 billion to FUMA has largely offset outflows."

Mr Moto was also pleased with the progress the company is making with its transformation plans.

He commented: "We are making good progress towards the transformation of the business. In particular, we are transforming the advice business through our Advice 2.0 strategy and progressing our platform simplification strategy, while supporting IOOF's open architecture approach and enabling choice for our clients."

The Chief Executive is now looking ahead to the middle of the year when its FUMA should be boosted by the acquisition of the MLC business from National Australia Bank (ASX: NAB).

"We have continued to meet key milestones in the execution of our transformation program including Advice 2.0 and Evolve. We are progressing well and meeting targets to enable the completion of the proposed MLC acquisition before 30 June 2021," he added.

No guidance has been given in respect to first half profits or its expectations for the full year.

Should you invest $1,000 in Insignia Financial right now?

Before you buy Insignia Financial shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Insignia Financial wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 30 April 2025

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News

Businessman using a digital tablet with a graphical chart, symbolising the stock market.
Share Market News

$10,000 invested in the ASX 200 5 years ago is now worth…

Guess how much $10,000 invested in the ASX 200 five years ago is worth today!

Read more »

Retired couple hugging and laughing.
Share Market News

Eyeing retirement: Do you really need $1 million?

AustralianSuper recently weighed in.

Read more »

Happy woman working on a laptop.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a pleasant end to the trading week for investors this Friday.

Read more »

Close-up of a business man's hand stacking gold coins into piles on a desktop.
Opinions

If I had a big cash pile like Warren Buffett, here's how I'd spend it in 2025

I'd put Buffett's billions to work straight away.

Read more »

Man pointing at a blue rising share price graph.
Technology Shares

Up 30% in a month, this ASX 200 tech share is 'a compelling opportunity': expert

Analysts from listed investment company WAM Capital say this ASX 200 tech stock is worth watching.

Read more »

Emotional euphoric young woman giving high five to male partner, celebrating family achievement, getting bank loan approval, or financial or investing success.
52-Week Highs

5 ASX 200 shares hitting multi-year highs after strongly rebounding from tariff turmoil

These stocks have hit new price milestones amid a day in the green for the ASX 200.

Read more »

A woman sits in a cafe wearing a polka dotted shirt and holding a latte in one hand while reading something on a laptop that is sitting on the table in front of her
Share Market News

3 key takeaways from the 2025 Macquarie Conference

More than one hundred companies presented at the Macquarie Conference this year. Here’s what we learned.

Read more »

An executive in a suit smooths his hair and laughs as he looks at his laptop feeling surprised and delighted.
Broker Notes

Brokers name 3 ASX shares to buy today

Here's why brokers are feeling bullish about these three shares this week.

Read more »