IFL - Insignia Financial

[peter2]

sptrawler commented on my apparent quick change of heart re IFL. I tried to say that this is OK for a shorter term trader. In fact it's necessary.

A medium term trader could have bought the BO like I did but select a more conservative iSL (below 8.60). In this case the trade is carrying a small loss but there's no need to sell after the huge down day. This trader can wait to see if this much lower price will attract "value" investors. Today's price action looks like it did as price has bounced.

 

[HelloU]

thx, sorta worked out from your 2nd post that u were talking about MT/LT buy scenario if entry was timed at ur wednesday post........(not some previous historic entry).

(it was always clear this was a comparison to a ST set up)

 

[notting]

Seems to be riding mirroring AMP down which I would say is a tad unfair!!
For longer term hold this is buying opportunity when it isn't making a lower low!!!

 

[sptrawler]

Picked up a few today, I can't see how there will be too much disruption, to their model. Once the dust settles from the Royal Commission, I would expect the business to pick up, they also added the ANZ business which should increase the bottom line.

 

[jbocker]

Down 35.7%. OUCH. That is a big drop and looks like it might take a while to sort out with top management being threatened with disqualification by APRA.
Unlike banks that can sell off their financial advising woes and still have their banking business. Is THE bread and butter going to toast for IOOF?

 

[sptrawler]

This IMO may be seen as a test case.
Just my opinion.
I do hold and hope they have better council, than APRA.

 

[jbocker]

This IMO may be seen as a test case.
Just my opinion.
I do hold and hope they have better council, than APRA.

Good Luck SP. Going to be very interesting for this industry.

 

[sptrawler]

Well even if it goes ar$e up, it is only money, there is a lot more to be lost in the next 3 to4 years. IMO

 

[So_Cynical]

Good Luck SP. Going to be very interesting for this industry.

The only winner i can see so far is EQT - Equity Trustees, up 4.3% today closing close to an all time high, EQT mostly just do trustee services.

 

[sptrawler]

The only winner i can see so far is EQT - Equity Trustees, up 4.3% today closing close to an all time high, EQT mostly just do trustee services.

One would guess it will be hard for IOOF, someone has to cop a spanking, and they are probably the low hanging fruit.
Both sides of politics will want this bedded down before the election. IMO
It is causing a lot of angst in the electorate.
From the voters perspective, not only is the asx tanking and the capital falling, but every day in the media they are being told the people holding their money are ripping them off.
Then they expect further problems after the election, it isn't a rosy picture. Imo

 

[So_Cynical]

IOOF has lost 2.5 billion in market cap since August -50%

 

[Miner]

Almost overnight IFL fate gone south. With the allegation probably the final blow could be much worse than Royal Commission on AMP. Who knows the next company?
I always had a respect on perceived ethical values with IFL but I was wrong.

 

[HelloU]

2009 event
already been thru civil actions
asic investigated already

in a country where the employment growth industry is looking over the shoulders of others not sure who the winners of this are expected to be .....but i see plenty of losers

 

[tinhat]

For those of you who don't know the history behind IOOF and mutual/friendly funds more generally, there is perhaps some irony in these events. Friendly or Mutual societies were a common form of savings and insurance association formed and owned by their members to benefit their common financial interests. They were the most common structure for insurance businesses until relatively recent times.

IOOF was a mutual fund formed in 1846 by the Independent Order of Odd Fellows.

It was only in recent times in Australia that these mutual associations decided it was in the interests of their members and their future efficient market operations to transition from member owned institutions to a shareholder owned corporation. Usually members, comprising policy and account holders made a small windfall profit from being allocated shares through the corporatisation process which unlocked the intrinsic capital value of the businesses as listed corporations.

IOOF demutualised in 2002. Other examples of now demutualised and corporatised mutual societies/associations include the Australian Mutual Provident Society, formed in 1848 and NRMA Insurance, formerly owned and operated by the National Roads and Motorists Association.

The same process has happened with most of the producer cooperatives which once saw the processing, distribution and marketing of primary production such as cheese and dairy (for example, Murray Goulburn Co Ltd). These farmer cooperatives were owned by and for the benefit of the farmers. How did that work out for the farmers?

In all these cases bankers, advisors, brokers and management and the original cooperative and mutual members all made a quick short-term windfall. Whether those members or society at large have benefited in the long run, especially given the poor state of market and corporate oversight in this county, is another matter.

 

[sptrawler]

In all these cases bankers, advisors, brokers and management and the original cooperative and mutual members all made a quick short-term windfall. Whether those members or society at large have benefited in the long run, especially given the poor state of market and corporate oversight in this county, is another matter.

the only co op that I can think of that has done o.k, is Wesfarmers.

https://en.wikipedia.org/wiki/Wesfarmers

Good write up tinhat.

 

[Garpal Gumnut]

Please excuse me for being a muppet if this question is idiotic.

How much of the IOOF muppet superannuant's money depends on the share price of IFL (IOOF)?

Is there a run on IOOF assets by retirees and superannuants with assets in IFL ?

Are we in a Manny Cassimatis Storm Financial scenario?

gg

 

[sptrawler]

I think there will be a big rebound, once the dust settles from the RC.
Also I would expect a lot of consolidation in the super sector, as regulatory requirements become more onerous and are strictly enforced.
Well for the short to medium term.

 

[sptrawler]

Great set of numbers from IOOF.

Ist Half 2019 results

 

[sptrawler]

Up 16% today.

 

[bigdog]

Motley Fool reports
https://www.fool.com.au/2019/02/19/ioof-share-price-surges-on-unexpectedly-solid-results/

IOOF share price surges on unexpectedly solid results
Cale Kalinowski | February 19, 2019

The IOOF Holdings Limited (ASX: IFL) share price skyrocketed today, closing 16.42% higher at $6.17. This comes after the company posted a solid set of interim results despite a bruised reputation after the financial services provider was slammed by the Royal Commission.

IOOF achieved a 200% increase in statutory net profit after tax (NPAT) driven by one-off items including a $34 million profit from the sale of the company’s corporate trust business.

The numbers were also solid on an underlying basis, with 6% growth in underlying NPAT. Acting CEO, Renato Mota said that the result was a reflection of the strength of the company’s diversified business model. The acquisition of ANZ Wealth Management also benefited the result.

The company acknowledged that trust needed to be rebuilt and changes made that will lead to better outcomes for clients. “IOOF is fully supportive of Royal Commission recommendations that will lead to a better, stronger financial services industry for the benefit of all Australians,” Mr Mota said.

IOOF hasn’t yet felt the full impact of the Royal Commission. The company signaled additional compliance and regulatory costs in the range of $20 – $30 million which will be incurred commencing immediately and into FY20.