IFL - Insignia Financial

[sptrawler]

IOOF have taken a $36.4m hit to its profit, since picking up the ANZ super and investment arm, now to see if the purchase was worthwhile or a white elephant.

https://www.smh.com.au/business/ban...fit-falls-after-anz-deal-20200218-p541rt.html

I do hold.

 

[sptrawler]

IFL market update figures sound reasonable.

https://www.asx.com.au/asxpdf/20200430/pdf/44hdjtsmd78j0x.pdf

Still holding.

 

[sptrawler]

Class action against IFL dropped.
https://www.moneymanagement.com.au/...sed-class-action-against-ioof-settles-quietly
From the article:
The class action had been brought by law firm Quinn Emanuel Urquhart and Sullivan on behalf of shareholders who had acquired an interest in IOOF’s shares between 27 May, 2015, and 9 August, 2018, with the company saying at the time the action appeared to be based on evidence given to the Royal Commission and that APRA had commenced legal proceedings against certain officers of IOOF

The APRA action which appeared to underpin the class action failed in court last year.

IOOF noted that it was making no payment to the plaintiff, its lawyers or the litigation funder and was very happy with the outcome.


Still holding.

 

[sptrawler]

Latest update by IFL, on FUM and money flows.
https://www.smh.com.au/business/ban...flows-execs-take-pay-cut-20200730-p55gu1.html

Still holding.

 

[sptrawler]

Ioof to buy MLC from NAB for $1.4billion, well this will be very interesting.
https://www.theage.com.au/business/...th-business-in-1-4b-deal-20200831-p55qsr.html
The deal will swell IOOF's funds under management to $510 billion, with $173 billion of this in superannuation monies. Mr Mota said scale was critical for the company's success.
It looks like a make or break moment to me. They will have to be nimble to take on the industry funds.

I do hold.

 

[sptrawler]

After careful thought and wanting to save some capital, I've thought discretion is the better part of valour and lightened up considerably.

 

[wabullfrog]

@sptrawler looks like you got out just in time.

Down near March levels with lots of unhappy share owners on HC as well as burning a few Sub Underwriters.

Subbies ready for red ink at IOOF

Sub-underwriters are set to be hit with the year's first big shortfall.

www.afr.com

Wonder how close it is to bottoming out?

 

[Chronos-Plutus]

@sptrawler looks like you got out just in time.

Down near March levels with lots of unhappy share owners on HC as well as burning a few Sub Underwriters.

Subbies ready for red ink at IOOF

Sub-underwriters are set to be hit with the year's first big shortfall.

www.afr.com

Wonder how close it is to bottoming out?


View attachment 111874

I haven't really been following this however it looks like a dilution tantrum stemming from the acquisition of MLC. Not sure how profitable MLC is or why NAB want to offload it.

What doesn't make sense to me is why have IOOF done a massive equity dilution to raise funds to acquire MLC when the regulators haven't given approval?

(https://www.asx.com.au/asxpdf/20200831/pdf/44m40s3w3vwb9d.pdf)

(https://www.asx.com.au/asxpdf/20200831/pdf/44m40v723jmmv7.pdf)

 

[Chronos-Plutus]

I haven't really been following this however it looks like a dilution tantrum stemming from the acquisition of MLC. Not sure how profitable MLC is or why NAB want to offload it.

What doesn't make sense to me is why have IOOF done a massive equity dilution to raise funds to acquire MLC when the regulators haven't given approval?

View attachment 111878
(https://www.asx.com.au/asxpdf/20200831/pdf/44m40s3w3vwb9d.pdf)

View attachment 111877
(https://www.asx.com.au/asxpdf/20200831/pdf/44m40v723jmmv7.pdf)

This whole deal looks back-the-front to me:

Do miners just start raising money to mine the ground without regulator approval?

Do airlines just start raising money to fly their aircraft into any country without regulator approval?

Maybe IOOF comes good; but like I said, the deal doesn't make sense to me.

 

[sptrawler]

It has a huge smell about it, why would NAB sell, why would IOOF buy, how do you make money selling super and make enough to pay dividends and management fees. When industry funds are not paying dividends only management fees.
As a niche player, they were smart, nimble, clever and sharp.
This time, maybe that sharp they cut themselves, I would love to know the reasoning, on how they expect to outperform enough to justify the outlay on the purchase
Just my thoughts.

I don't hold

 

[sptrawler]

The other thing that I wonder about is, when there is a huge amount of dilution, will there be a share consolidation at a later date?
Eventually everyone gets sick of riding the horse into the ground, I have done it enough times, to just jump off when it gets weird.lol
Again just my thoughts.

 

[Chronos-Plutus]

Let's hope this isn't happening to IOOF:

Image is an adaptation of Gary Varvel's work (https://garyvarvel.com/)

 

[Johnny1980]

It has a huge smell about it, why would NAB sell, why would IOOF buy, how do you make money selling super and make enough to pay dividends and management fees. When industry funds are not paying dividends only management fees.
As a niche player, they were smart, nimble, clever and sharp.
This time, maybe that sharp they cut themselves, I would love to know the reasoning, on how they expect to outperform enough to justify the outlay on the purchase
Just my thoughts.

I don't hold

NAB is getting out of Wealth management just like all the other banks. It’s not their core business. IOOF has obviously jumped on the opportunity even though it will stretch out its resources to the max. Time will tell if it nails the transition but the history certainly remains on its side. Also I don’t see the regulators objecting to IOOF acquiring MLC over some equity firm from US trying to make a quick buck. I’m holding and topped up at 3.10.

 

[sptrawler]

NAB is getting out of Wealth management just like all the other banks. It’s not their core business. IOOF has obviously jumped on the opportunity even though it will stretch out its resources to the max. Time will tell if it nails the transition but the history certainly remains on its side. Also I don’t see the regulators objecting to IOOF acquiring MLC over some equity firm from US trying to make a quick buck. I’m holding and topped up at 3.10.

The regulators agreed with the takeover, the market is still to be convinced on the merits of the move.

 

[wabullfrog]

HY21 results seem ok

https://cdn-api.markitdigital.com/a...pdf?access_token=00076aItZ6EDDLvqPTvFd31zmOWo


11.5cps dividend which includes a 3.5cps special dividend. Still a long way short of what they were paying a few years ago.

Early release super $699m for HY21

MLC acquisition still expected to be completed by June 2021. Currently awaiting APRA s29

 

[sptrawler]

NPAT $65.9m, that would want to improve a lot, to justify a $1.4b outlay, time will tell.

 

[wabullfrog]

IFL completed acquisition of MLC on 31 May. Share price has finally risen above $4 but still a long way short of the $7 it was in Jan 2020.

https://www.ioof.com.au/__data/assets/pdf_file/0005/431843/2217354.pdf

 

[wabullfrog]

Highlights from IFL Full Year Presentation

Market reaction yesterday, the big red one.

 

[divs4ever]

i would like to watch longer before i decide if invest more into this stock

i worry if it has over-expanded

i have resisted averaging down from my $8.67 entry price

DYOR

 

[Dona Ferentes]

“The results achieved over the quarter are in line with expectations,” said Renato Mota, chief executive of IOOF. “During a period of significant transformation, all our businesses grew, assisted by investment gains.”

SPIN

IOOF suffered net investor redemptions from its financial advice and funds management units in the September quarter, although increases in fund holdings helped to push up overall assets under management and administration.

There was $1.4 billion in net outflows during the quarter while market gains of $2 billion pushed overall funds under management to $98.3 billion.

Funds under administration edged $1.8 billion higher to $222.8 billion despite net outflows of $900 million as market gains added $3.4 billion to the overall total.