Is this the right time to buy IOOF Holdings Limited?

IOOF Holdings Limited (ASX:IFL) has reported a solid inflow of funds.

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What: The latest announcement from diversified financial services group IOOF Holdings Limited (ASX: IFL) has failed to spur investor enthusiasm despite the release of a reasonable set of numbers regarding its funds under management, administration, advice and supervision (FUMAS) for the quarter ending September 30 2015.

So What: The highlight of the first quarter results was a positive net fund flow of $1.2 billion in funds under management, administration and advice (FUMA). However this impressive inflow was offset by an overall $4.3 billion reduction in FUMAS to $148.8 billion.

Here are the details:

  • Net positive flows of $509 million into IOOF's Advice platform including strong flows from Shadforth, Lonsdale and Ord Minnett
  • Net positive flows of $283 million into IOOF's Flagship Platforms and positive flows of $115 million to platforms overall
  • Investment Management inflows of $617 million
  • Market movements, which included the difficult and volatile month of August when the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) plunged from 5,700 points to 5,200 points, were largely responsible for contributing to the decline in overall FUMAS.

Now What: Along with peers such as AMP Limited (ASX: AMP) and Macquarie Group Ltd (ASX: MQG), the outlook for financial service providers like IOOF remains a positive thematic.

For this reason, IOOF's recent share price weakness which sees the stock trading near $9 a share (or roughly flat over the past 12 months) – and is arguably primarily due to media speculation regarding certain aspects of the group's compliance and operations – could be viewed as a long-term buying opportunity.

Motley Fool contributor Tim McArthur has no position in any stocks mentioned. Unless otherwise noted, the author does not have a position in any stocks mentioned by the author in the comments below. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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