Citi says net outflows worse than expected for Australia's IOOF, slashes PT

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28/10/2021 23:53

** Australian fund manager IOOF Holdings's  IFL.AX  Q1 net
outflows were a little worse than expected during the quarter
-Citi
    ** Brokerage retains "buy" rating, however, cuts PT to
A$5.20 from A$5.30
    ** IOOF, which in November hopes to rebrand to Insignia
Financial, had A$321.1 billion ($241.95 billion) in funds under
management and administration (FUMA) at September 30
 urn:newsml:reuters.com:*:nFWN2RN2AY
    ** Co's funds under administration business, closed the
quarter at A$222.8 bln, up by A$1.8 bln over the quarter
    ** Citi notes IOOF has now taken action to reprice the
OneAnswer index products arguing these now rank amongst the
industry’s best value
    ** Brokerage says it remains to be seen whether action to
reprice the OneAnswer index products will reduce net outflows in
future quarters
    ** Citi says after a positive momentum in 4Q21, it is
disappointing to see investment management flows strongly
negative for IOOF in 1Q22 and says these flows are inherently
lumpy 
    ** Seven of eight analysts rate the stock "buy" or higher
and one "hold"; their median PT is A$5.25 – Refinitiv Eikon data
    ** IFL up 21.1% YTD, as of last close 
    



($1 = 1.3271 Australian dollars)

 (Reporting by Riya Sharma in Bengaluru)
 ((Riya.Sharma@thomsonreuters.com;))