IOOF Holdings Limited (ASX: IFL) shares are slumping today despite the company revealing its funds under management increased by $1.5 billion over the past quarter. At the time of writing, the IOOF share price is trading 0.56% lower at $3.57.
IOOF is a financial services company that provides advisers and their clients with financial advisory services, portfolio management and administration, and investment management products.
Let's take a look at what its quarterly update reveals.
How has IOOF been performing?
The IOOF share price is on the slide after the company released its third-quarter (Q3) FY2021 business update to the ASX this morning. The company advised that funds under management, advice and administration (FUMA) was up by $1.5 billion to $203.9 billion for the quarter to 31 March 2021.
"Favourable market conditions" created a $5.4 billion market uplift, according to the company. The $267 million in net inflows from portfolio and estate administration represents a significant jump from the $180 million generated in the prior comparative period.
The company reported $1.4 billion in net outflows through its financial advice arm, and outflows of $2.1 billion from 53 advisers departing IOOF's self-employed advice businesses, as the company previously envisaged. IOOF is expecting a further 140 of these advisers to exit the business over the coming months.
In its investment management portfolio, the company reported $507 million in net outflows, including $469 million in outflows due to "AET cash product simplification". It also noted $782 million in net outflows through the company's pension and investment funds.
Management comments
IOOF CEO Renato Mota said the fund had performed well and was focusing on improving key areas:
We continue to deliver on the transformative agenda for the business. The strength, scale and economic diversity of our business model has supported this solid quarter and increase in FUMA.
Our Portfolio & Estate Administration segment saw positive net flows again. We continued to deliver organic growth in our contemporary platform offerings and we have seen continued expansion in the independent financial adviser (IFA) market
IOOF share price snapshot
The IOOF share price has been a pretty volatile performer over the past 12 months and has declined significantly since its yearly high of over $5.18 in July 2020. IOOF shares are up by less than 2% in 2021 so far but have risen by around 3% over the past week.
