Subscribe to our feed
Enter your email address:

We take privacy seriously. Your email address will not be shared
1085 Happy Readers
SUBSCRIBE NOW

1021 Followers
FOLLOW ME
Feature Posts
Stock Pick of the Month

Buy OBJ Now at 0.032

Our Monthly Stockpick
Pages
Recent Comments
- Arody on Aussie drops as talk of Feb rate rise ebbs, slightly
- numOmiffsause on Health a priority at COAG talks
- FoeteTepDup on Health a priority at COAG talks
- Admin on New australian Mining IPO’s To launch
- lulcho on New australian Mining IPO’s To launch
Meta
counter
Speculator
- Quickstep Dec 2009

Is IOOF on the big guns radar ?

Posted on December 22nd, 2009 in 2010, Australian stock market, IOOF, australian stocks online

IOOF has been steadily gaining the attention of the Big guns and could possibly be a target for takeover with the economy looking good currently

So who are IOOFS MAJOR shareholders ?

Blackrock Investment Management (Australia)

Bendigo and Adelaide Bank

First AXA Asia Pacific, next IOOF? According to the Herald Sun,institutional investors are cementing their position in IOOF, prompting talk the big banks, particularly ANZ Banking Group, might be looking to take over the financial services company.

Company Name:
IOOF Holdings Limited

Stock Code:
IFL

Website:

www.ioof.com.au

Market Cap ($M):
1,367

Equiv. Shares (M):
230

The paper reports that IOOF’s 81 biggest shareholders now account for about 70 per cent of its issued stock, compared with the 430 largest shareholders owning 46 per cent at the end of September 2008. Most recently, fund manager Blackrock Investment Management (Australia) became IOOF’s third largest shareholder, boosting its stake to 5.42 per cent five months after joining the company’s register.

IOOF Holdings Ltd

The paper suggests that IOOF’s retail funds management business could be of interest to the big banks, offering ANZ the opportunity to – if briefly, depending on how AXA APH negotiations go – become the nation’s biggest distributor of retail fund products. IOOF’s smaller price tag, compared with the $4 billion-plus for AXA APH’s local assets, might also tempt.

The second-largest shareholder in IOOF is Bendigo and Adelaide Bank, with which it has a strategic alliance. A potential obstacle for a major bank eyeing a deal with IOOF, is the target company’s decade-long strategic alliance with Bendigo Bank.

Bendigo is IOOF’s second biggest shareholder, with a 7.8 per cent holding.

The Victorian regional bank uses IOOF’s adviser network across the country and the alliance took on a more formal appearance several years ago when IOOF’s former chief executive Tony Robinson was appointed to the bank’s board.

IOOf Company Overview

IOOF Limited (IFL) is an Australian-based financial services operator. Its core funds management business is operated by IOOF Investment Management Limited. IFL acquired Perennial Investment Partners in 2006 and merged with Australian Wealth Management (AUW) in April 2009. IFL has rationalised and rebranded its financial planning businesses into Consultum Financial Advisers. IFL has a socially responsible investment research company, SIRIS.

Company History

IOOF was formed as a friendly society in 1846. It operated as a mutual organisation, providing sick pay and covering funeral costs for its members. More recently, IOOF’s focused on the marketing and management of its funds management business. In June 2003, the company demutualised and listed on the ASX. In April 2009 it merged with Australian Wealth Management to create one of Australia’s largest vertically integrated wealth managers encompassing: custody, brokers, advice and funds management.

Differentiating Factor

IOOF’s key differentiating factors are its brand name (formerly a friendly society), the depth of its products and the performance of its funds. IFL/AUW has a national financial planning network of around 580 aligned financial advisers, which enables it to cross-sell its various financial products and also provides a more “tied” source of revenue. IOOF’s socially responsible research is also a point of differentiation. The Perennial asset management business is a clear differentiating factor.

Major Customers & Competitors

Small share funds, institutions and retail investors are the major customers of funds management companies. Listed competitors include the fund manager subsidiaries of the five major banks, listed investment companies such as AMP, AXA, Perpetual and Challenger Financial Services, as well as an increasing number of smaller boutique fund managers. Unlisted competitors are primarily managed fund products distributed through financial planners.