INSIGNIA FINANCIAL LTD — Capital/Financing Update 2019

Jul 24, 2019

IOOF Holdings Ltd GPO Box 264 ABN 49 100 103 722 Melbourne VIC 3001 Level 6, 161 Collins Street Phone 13 13 69 Melbourne VIC 3000 www.ioof.com.au

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25 July 2019

IOOF grows FUMA by 19% to $149.5 billion

Highlights

Funds under Management, Advice and Administration (FUMA) of $149.5 billion as at 30 June 2019 represents:

• An increase of 18.7%, or $23.6 billion, compared to prior year.

• An increase of 5.9%, or $7.5 billion, when excluding ANZ Wealth aligned dealer group funds under advice acquired during the year.

Net flows by segment for the quarter to 30 June 2019, were as follows;

• Portfolio & Estate Administration: $561 million net inflow (prior comparative period (pcp): $666 million net inflow).

• Financial Advice: $432 million net inflow (pcp: $2.5 billion net inflow that included a one-off large client transfer of approximately $2 billion).

• Investment Management: $181 million net outflow (pcp: $130 million net inflow).

IOOF CEO Renato Mota commented, “This has been our best quarter of inflows recorded across IOOF’s platforms and financial advice businesses since June 2018. Pleasingly, it demonstrates the strong organic growth momentum achieved in a challenging year for the industry.

“In a year which has seen the reputation of the sector challenged, many of our competitors have suffered significant net outflows. IOOF’s emphasis on the value of financial advice, putting our clients first and resetting our organisational culture has translated into strong business performance for the quarter.”

Another highlight was the continued strong positive market reaction to the recently launched IOOF Insignia Wrap range (BT badge). The range of funds continued to attract strong inflows, reaching over $5.6 billion in funds under advice in the eight months since launch.

Mr Mota said, “As an advice-led business, supporting a broad range of platform solutions for our clients and advisers ensures we continue to adapt to the changing market. This sets us apart from our peers. The choice of solutions offered to advisers is unmatched in the wealth management industry.”

Ex-ANZ wealth aligned dealer group flows were impacted by the departure of one practice which was acquired by a third party. Although related funds under advice were $1.3 billion, this has an insignificant impact on licensee revenue.

Investment Management flows were $181 million net outflow for the quarter, with gains from new advice relationships partially offset by redemptions associated with pension payments.

• ENDS -

Enquiries:

Rachel Scully Head of Corporate Affairs IOOF Holdings Ltd

David Coulter Chief Financial Officer IOOF Holdings Ltd

P: +61 3 8614 4530 P: + 61 3 8614 4461 E: rachel.scully@ioof.com.au E: david.coulter@ioof.com.au

Funds movement for the three month period ended 30 June 2019

	FUMA				FUMA
			Pension
All amounts $m	31-Mar-19	Net flow	payments	Market/Other1	30-Jun-19
Portfolio &
Estate	41,841	561	(246)	1,591	43,747
Administration
Investment Management	22,309	(181)		759	22,886
Financial Advice	63,766	432	(185)	2,738	66,752
Ex-ANZ wealth
aligned dealer	16,717	(1,285)	(65)	764	16,130
groups2
Total FUMA	144,632	(473)	(496)	5,852	149,515

Funds movement for the twelve month period ended 30 June 2019

	FUMA						FUMA
		FUMA		Pension
All amounts $m	30-Jun-18	acquired	Net flow	payments	Reclass	**Market/Other1 **	30-Jun-19
Portfolio &
Estate	39,759	-	1,432	(869)	1,209	2,216	43,747
Administration
Investment Management	22,029	-	(630)		-	1,488	22,886
Financial Advice	64,145	-	520	(706)	-	2,793	66,752
Ex-ANZ wealth
aligned dealer	-	17,256	(1,265)	(137)	-	277	16,130
groups2
Total FUMA	125,933	17,256	57	(1,713)	1,209	6,773	149,515

1 Includes market movements, fees and internal transfers

2 Ex-ANZ wealth aligned dealer group FUMA reporting is two months in arrears in accordance with ANZ wealth reporting process

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Funds by Segment

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About IOOF Holdings Ltd

IOOF has been helping Australians secure their financial future since 1846. During that time, we have grown substantially to become one of the largest groups in the financial services industry.

IOOF provides advisers and their clients with the following services:

• Financial Advice services via our extensive network of financial advisers;

• Portfolio & Estate Administration for advisers, their clients and hundreds of employers in Australia; and

• Investment Management products that are designed to suit any investor’s needs

Further information about IOOF can be found at www.ioof.com.au

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