Am I missing something on IOOF Holdings (IFL)?

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Question asked 18/09/2021

Am I missing something on IOOF Holdings (IFL)?

I have been accumulating IOOF shares as I thought that the company has been taking the right steps in transforming an earlier tarnished image problem and instigating various actions to further improve its financial setting. Despite incurring a loss (due mainly to costs associated with acquisitions ) for y/e 30/6/2020 the figures and comments provided by the company for y/e 30/6/2021 trading have confirmed my thoughts.

However, there has been a tardy market reaction to the results. Is there something that I have missed?

Brian

Answer

Hi Brian,

Like you, we think IOOF is on the right track in transforming their business, however it’s a big and complex job. We do hold IOOF in the Income Portfolio and continue to like the stock, one issue we flagged in this weeks portfolio note on Wednesday was our position size of 6% – was it too high? Short answer is probably yes, this is more a ~4% sort of holding after their recent results which beat our top line assumptions however margins were lower than the market had expected. We covered IFL briefly in this months SMA Portfolio Report available on the link below.

SMA-Monthly_Income_August2021.pdf (marketmatters.com.au)

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IOOF Holdings (IFL)

LAST UPDATED 17/09/2021 17:00

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