Business Summary IOOF Holdings Limited (IFL) is an Australian financial service provider. IFL offers financial products and portfolio administration services including investments, superannuation, immediate and deferred annuities, and investment trusts, in addition to financial planning and advisory, stockbroking, estate planning and administration, and trustee services. Financial advice and distribution services: IFL advises retail client investment strategies, wealth protection and accumulation, stockbroking and retirement planning via the company network of financial advisers and stockbrokers. Brands include Bridges, Wealth Managers, Consultum, Lonsdale, Ord Minnett, Western Pacific Financial Advisers, Plan B and My Adviser. Platform management and administration: IFL provides platforms to clients, employers and financial advisers to manage a range of superannuation and investment options including managed funds and direct shares. Brands include IOOF Pursuit, IOOF Employer Super, The Portfolio Service, and AustChoice. Investment management products: IFL offers a range of investment products that are designed to suit any investors needs. The array includes multi-manager funds, Australian or international shares, and other investment products. Products include IOOF MultiMix, IOOF WealthBuilder, Perennial and QuantPlus. Trustee services: IFL provides estate planning and corporate trust services which are offered by Australian Executor Trustees, a specialist provider of personal trusts and offers a range of trust structures. Services include managed investment schemes, trustee or security trustee for securitization and structured finance transactions, and trustee for note and other debt issues. The AET Superannuation provides the Private Super Fund - a small APRA fund; and the AET SMSF - a self-managed super fund establishment and administration service. Latest Research More Questions... IFL released a disappointing quarterly report that has raised a range of issues not properly addressed in the update. Below we provide a list of our key three concerns: - The recently acquired ANZ’s P&I’s earnings in the first five months since the acquisition completed appears to show a big deterioration in earnings, even after taking into account the COVID impact. We suspect the margin decline is more rapid than the company has previously indicated. - IFL’s guidance range for its FY20 UNPAT result of between $123m - $125m lacks key information as to how it arrived there. Specifically, how much of their target synergies is included in this figure and what one-off’s have been excluded (i.e. we weren’t provided with a reported NPAT guidance figure); and - We see the comments around balance sheet strength as misleading. IFL noted that if it had included the annualised ANZ P&I contribution, its net-debt to EBITDA ratio is estimated to be 1.3x. It is misleading because it hasn’t GICS - Div. Financials IOOF Holdings Limited ASX Code: IFL Price: $4.48 12 Mth Target Price: $4.20 Rating: Sell Important Disclaimer - This may affect your legal rights: Because this document has been prepared without consideration of any specific client's financial situation, particular needs and investment objectives, a Bell Potter Securities Limited investment adviser (or the financial services licensee, or the proper authority of such licensee, who has provided you with this report by arrangement with Bell Potter Securities Limited) should be consulted before any investment decision is made. While this document is based on the information from sources which are considered reliable, Bell Potter Securities Limited, its directors, employees and consultants do not represent, warrant or guarantee, expressly or impliedly, that the information contained in this document is complete or accurate. Nor does Bell Potter Securities Limited accept any responsibility to inform you of any matter that subsequently comes to its notice, which may affect any of the information contained in this document. This document is a private communication to clients and is not intended for public circulation or for the use of any third party, without the prior approval of Bell Potter Securities Limited. This is general investment advice only and does not constitute advice to any person. Disclosure of Interest: Bell Potter Securities Limited receives commission from dealing in securities and its authorised representatives, or introducers of business, may directly share in this commission. Bell Potter Securities and its associates may hold shares in the companies recommended. Snapshot Date Market Cap. Shares on issue 12 Month High 12 Month Low 4 August 2020 $1,573m 351.1m $8.45 $2.72 Rating Rating 12 Mth Target Price Capital Gain Gross Yield Implied Total Return Sell $4.20 -6.2% 3.2% -3.1% Investment Fundamentals FYE 30 Jun 2019A 2020F 2021F 2022F Profit $m 184.9 124.2 129.0 124.2 Profit (norm)* $m 184.9 124.2 129.0 124.2 EPS* ¢ 52.7 35.4 36.7 35.4 EPS Growth % -10.4 -32.8 3.9 -3.7 P/E* x 8.5 12.7 12.2 12.7 P/E Relative % 0.0 0.0 0.0 0.0 DPS ¢ 44.5 21.0 10.0 15.0 Yield % 9.9 4.7 2.2 3.3 Franking % 100.0 100.0 100.0 100.0 * Adjusted for goodwill and unusual items Source: Based on Bell Potter estimates Share Price Chart Total Return on $10,000 Investment
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IOOF Holdings Limited ASX Code: IFL Price: $5.09 12 Mth ... · IOOF Holdings Limited (IFL) is an Australian financial service provider. ... Market Cap. Shares on issue 12 Month High
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Business SummaryIOOF Holdings Limited (IFL) is an Australian financial service provider. IFLoffers financial products and portfolio administration services includinginvestments, superannuation, immediate and deferred annuities, andinvestment trusts, in addition to financial planning and advisory, stockbroking,estate planning and administration, and trustee services.
Financial advice and distribution services: IFL advises retail clientinvestment strategies, wealth protection and accumulation, stockbroking andretirement planning via the company network of financial advisers andstockbrokers. Brands include Bridges, Wealth Managers, Consultum,Lonsdale, Ord Minnett, Western Pacific Financial Advisers, Plan B and MyAdviser.
Platform management and administration: IFL provides platforms toclients, employers and financial advisers to manage a range ofsuperannuation and investment options including managed funds and directshares. Brands include IOOF Pursuit, IOOF Employer Super, The PortfolioService, and AustChoice.
Investment management products: IFL offers a range of investmentproducts that are designed to suit any investors needs. The array includesmulti-manager funds, Australian or international shares, and other investmentproducts. Products include IOOF MultiMix, IOOF WealthBuilder, Perennialand QuantPlus.
Trustee services: IFL provides estate planning and corporate trust serviceswhich are offered by Australian Executor Trustees, a specialist provider ofpersonal trusts and offers a range of trust structures. Services includemanaged investment schemes, trustee or security trustee for securitizationand structured finance transactions, and trustee for note and other debtissues. The AET Superannuation provides the Private Super Fund - a smallAPRA fund; and the AET SMSF - a self-managed super fund establishmentand administration service.
Latest ResearchMore Questions...
IFL released a disappointing quarterly report that has raised a range ofissues not properly addressed in the update. Below we provide a list of ourkey three concerns:
- The recently acquired ANZ’s P&I’s earnings in the first five months sincethe acquisition completed appears to show a big deterioration in earnings,even after taking into account the COVID impact. We suspect the margindecline is more rapid than the company has previously indicated.
- IFL’s guidance range for its FY20 UNPAT result of between $123m -$125m
lacks key information as to how it arrived there. Specifically, how much oftheir target synergies is included in this figure and what one-off’s havebeen excluded (i.e. we weren’t provided with a reported NPAT guidancefigure); and
- We see the comments around balance sheet strength as misleading. IFLnoted
that if it had included the annualised ANZ P&I contribution, its net-debt toEBITDA ratio is estimated to be 1.3x. It is misleading because it hasn’t
Important Disclaimer - This may affect your legal rights: Because this document has been prepared without consideration of any specific client's financial situation, particular needs and investmentobjectives, a Bell Potter Securities Limited investment adviser (or the financial services licensee, or the proper authority of such licensee, who has provided you with this report by arrangement withBell Potter Securities Limited) should be consulted before any investment decision is made. While this document is based on the information from sources which are considered reliable, Bell PotterSecurities Limited, its directors, employees and consultants do not represent, warrant or guarantee, expressly or impliedly, that the information contained in this document is complete or accurate.Nor does Bell Potter Securities Limited accept any responsibility to inform you of any matter that subsequently comes to its notice, which may affect any of the information contained in this document.This document is a private communication to clients and is not intended for public circulation or for the use of any third party, without the prior approval of Bell Potter Securities Limited. This is generalinvestment advice only and does not constitute advice to any person.Disclosure of Interest: Bell Potter Securities Limited receives commission from dealing in securities and its authorised representatives, or introducers of business, may directly share in thiscommission. Bell Potter Securities and its associates may hold shares in the companies recommended.
Snapshot
DateMarket Cap.Shares on issue12 Month High12 Month Low
4 August 2020$1,573m351.1m$8.45$2.72
RatingRating12 Mth Target Price
Capital GainGross Yield
Implied Total Return
Sell$4.20-6.2%3.2%-3.1%
Investment FundamentalsFYE 30 Jun 2019A 2020F 2021F 2022F
DPS ¢ 44.5 21.0 10.0 15.0Yield % 9.9 4.7 2.2 3.3Franking % 100.0 100.0 100.0 100.0* Adjusted for goodwill and unusual itemsSource: Based on Bell Potter estimates
Share Price Chart
Total Return on $10,000 Investment
accounted for its remediation program ($223m) and its integration costs(~$80m remaining) in this calculation. IFL is now sitting at the top end of itsnet-debt / EBITDA target ratio
Important Disclaimer - This may affect your legal rights: Because this document has been prepared without consideration of any specific client's financial situation, particular needs and investmentobjectives, a Bell Potter Securities Limited investment adviser (or the financial services licensee, or the proper authority of such licensee, who has provided you with this report by arrangement withBell Potter Securities Limited) should be consulted before any investment decision is made. While this document is based on the information from sources which are considered reliable, Bell PotterSecurities Limited, its directors, employees and consultants do not represent, warrant or guarantee, expressly or impliedly, that the information contained in this document is complete or accurate.Nor does Bell Potter Securities Limited accept any responsibility to inform you of any matter that subsequently comes to its notice, which may affect any of the information contained in this document.This document is a private communication to clients and is not intended for public circulation or for the use of any third party, without the prior approval of Bell Potter Securities Limited. This is generalinvestment advice only and does not constitute advice to any person.Disclosure of Interest: Bell Potter Securities Limited receives commission from dealing in securities and its authorised representatives, or introducers of business, may directly share in thiscommission. Bell Potter Securities and its associates may hold shares in the companies recommended.
Snapshot
DateMarket Cap.Shares on issue12 Month High12 Month Low
4 August 2020$1,573m351.1m$8.45$2.72
RatingRating12 Mth Target Price
Capital GainGross Yield
Implied Total Return
Sell$4.20-6.2%3.2%-3.1%
Investment FundamentalsFYE 30 Jun 2019A 2020F 2021F 2022F
DPS ¢ 44.5 21.0 10.0 15.0Yield % 9.9 4.7 2.2 3.3Franking % 100.0 100.0 100.0 100.0* Adjusted for goodwill and unusual itemsSource: Based on Bell Potter estimates
* Source: Morningstar. This chart shows the spread of recommendations from thosebroker analyst's in Australia with research coverage of this stock.
Principals & DirectorsPrincipals
Company Secretary Ms Adrianna Bisogni
Directors
Mr Allan Griffiths(Non-Executive Director,Non-Executive Chairman)Ms Elizabeth Flynn(Non-Executive Director)Ms Michelle Ann Somerville(Non-Executive Director)Mr John Selak(Non-Executive Director)Mr Robert Andrew Bloore(Non-Executive Director)Mr Renato Mota(Group General Manager - WealthManagement,Chief Executive Officer,Managing Director)
To access further Research or for information regarding our recommendations and ratings please seewww.bellpotter.com.au