IOOF and our advice-led strategy

Renato Mota, Group General Manager – Wealth Management

Renato Mota

In early June I was pleased to present at the IOOF Investor Day. While ostensibly a meeting for analysts and investors, I believe it’s a valuable opportunity to also share with you how we continue to support our industry.

At our core, IOOF is an advice-led wealth management business. We believe the advice you provide is the source of sustainable value to clients. We want to help you build a stronger business, and support a large and vibrant community of advisers who provide quality advice to more Australians.

Supporting intergenerational advice

As an advice-led wealth management business, our goal is to provide solutions to some of the biggest challenges and opportunities you face. Arguably, one of the biggest challenges facing the financial planning profession at the moment is mitigating the leakage of clients as assets transfer to the next generation.

The question is – why is this happening? There will always be a level of leakage on any intergenerational wealth transfer but studies suggest 50 per cent of leakage occurs because of a lack of engagement. Given we’re seeing a tidal wave of wealth transfer from baby boomers to Gen X and Y, an active engagement program could make a significant difference your business.

Fintech is an area we're looking into as a possible solution to this problem. These technologies will play an important part in delivering the right advice at the right price. Particularly now that the transactional and narrow scope of robo we’ve seen over the last three or four years has shifted to more applicable and relevant technologies that centre round client engagement and goals-based advice.

We’re also increasing our presence in the estate and trustee business. On 14 June, IOOF announced that it had entered into an agreement with National Australia Bank Limited to acquire National Australia Trustees Limited. This will become part of IOOF’s trustee business, Australian Executor Trustees Limited. This will enable us to continue providing advisers with a range of flexible estate and trustee services, supporting them in their discussions with clients around intergenerational wealth.

Learning from advisers

At the IOOF Investor Day, a panel discussion was held with three of our self-employed advisers; Lyle Grieg from Bridges, Tony Cimino from Consultum and Michael Hutton from Lonsdale.

While all three seek to deliver a high quality advice outcome for their respective clients, it was interesting to see the similarities – and differences – between their businesses.

When asked what the main business challenges were facing them on a day-to-day basis all three were unanimous – keeping up with ever-changing government regulation and the dynamic investment markets.

The group also found common ground in the desire to reduce the compliance burden and look for efficiencies or, as Michael called it, ‘reduce the friction’.

“Making things move smoother, faster, make it easier for us to deal with clients, easier for them to deal with us, with a view to constantly trying to improve that client experience,” Michael said.

As we approach a new financial year, I would like to thank you for your ongoing support and I encourage you to view the full IOOF Investor Day briefing here:

The information contained in this newsletter is provided on behalf of the IOOF group of companies and is intended for financial adviser use only. It is given in good faith and has been prepared based on information that is believed to be accurate and reliable at the time of publication. Any examples are for illustration purposes only and are based on the continuance of present laws and our interpretation of them at the time.