annual report 2011
annual report 2011
annual report 2011
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IOOF | <strong>annual</strong> <strong>report</strong> <strong>2011</strong><br />
Managing Director’s overview<br />
Chris Kelaher<br />
The 2010/11 financial year saw IOOF <strong>report</strong> an underlying net profit after tax of $111.5 million,<br />
a 15 per cent improvement on the prior year, and a statutory net profit after tax of $99.5 million.<br />
The money we manage on behalf of our<br />
clients increased $7.1 billion to $106.2<br />
billion. Pleasingly, the growth we have<br />
experienced in flows to our flagship<br />
platforms continues to be ahead of<br />
industry growth.<br />
I am pleased to <strong>report</strong> that we have made excellent progress on this program as<br />
demonstrated by the diagram below:<br />
Business Simplification Program<br />
Originally<br />
Jun <strong>2011</strong><br />
Dec <strong>2011</strong>*<br />
Beyond <strong>2011</strong><br />
One of our flagship platforms, IOOF<br />
Pursuit, recently passed $2 billion in Funds<br />
Under Advice, having launched in 2006.<br />
The last $1 billion has come in just<br />
18 months.<br />
I am proud of the fact that we were able<br />
to <strong>report</strong> record profits and an increase<br />
in client monies, while delivering on our<br />
business simplification strategy.<br />
Last year I introduced the Business<br />
Simplification Program to shareholders.<br />
Under that program, the number<br />
of superannuation and investment<br />
platforms, and IT systems would be<br />
consolidated, and our overall property<br />
footprint would be reduced by the end<br />
of December <strong>2011</strong>.<br />
The program has allowed IOOF to reduce<br />
risk in its business as well as enhance<br />
efficiencies. This is a significant long<br />
term benefit for members and<br />
shareholders alike.<br />
Platforms<br />
IT admin systems<br />
RSE licenses<br />
Corporate offices<br />
8<br />
8<br />
3<br />
16<br />
* Indicative timetable subject to change<br />
Achievements this year have included:<br />
• Consolidating several floors in two<br />
different Melbourne properties into<br />
one contemporary office, spanning<br />
one floor.<br />
• Outsourcing the management of<br />
two IT administration systems to IBM,<br />
reducing risk and freeing up resources<br />
for other IT projects.<br />
• Reduction of group structure, with<br />
10 fewer companies at the date of<br />
this <strong>report</strong>.<br />
5<br />
5<br />
3<br />
12<br />
3<br />
4<br />
1<br />
10<br />
Rationalisation<br />
based on<br />
commercial<br />
and strategic<br />
intent<br />
• These changes have come at an<br />
opportune time. Fewer products and<br />
fewer systems changes facilitates<br />
IOOF’s timely response to any<br />
regulatory change that we may see<br />
in future years. Now that the majority<br />
of the work is behind us, we are well<br />
positioned for future growth.<br />
page 7
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