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About
IOOF Holdings Ltd is an ASX 200 listed financial services company which provides clients with a range of products and services including Financial Advice, Investment Management, Superannuation and Estate and Trustee Services. The company was founded in 1846 as a friendly society which was formed to provide aid to its members throughout times of sickness and unemployment as many friendly societies were formed before the wide-spread introduction of government welfare packages. The society funded these activities through joining fees and re-occurring membership fees. IOOF has since grown with offices located in Sydney, Melbourne, Perth, Adelaide, Brisbane and Hobart. It currently services approximately 1 million customers and employs roughly 2000 employees. As of 31 December 2020, IOOF had Funds under Management, Administration and Advice (FUMA) of $202.4 billion making it one of Australia's largest financial companies.

History of IOOF
IOOF originated as a friendly society with roots leading back to England and the United States of America. The majority of these societies were formed before government intervened to provide financial welfare where for a small membership fee, members would receive financial aid and protection for themselves and their family in times of sickness, death and old age. These friendly societies were particularly socially-oriented holding regular meetings which provided entertainment. This emerged particularly in rural and mining communities. Originally named the 'Independent Order of Odd Fellows', IOOF was brought to Australia and established in Sydney in 1836, but was quickly abolished by the disruption to society caused by the goldrush in Victoria. As such, IOOF flourished in Victoria and almost fully disappeared in Sydney. Friendly Societies had its greatest expansion during in Australia during the late 19th and early 20th century. In fact, a paper published by the Liverpool university press in 1909 showed that an estimate of approximately 500,000 people were members of a friendly society. This means that around 46% of Australian's were benefitting from the services provided by the societies out of a population of 4.8 million. The process of being admitted into IOOF was subject to many requirements like income, health religion etc. Prior to joining, prospects had to pass a multitude of tests including: - Income - Religion - Moral Prospects also had to sign a form stating that they and their wife were of good health. If the prospects passed all the requirements, local lodge members would vote on the suitability of the prospect by placing either a black or white ball into a ballot box. If more than 3 black balls were placed in the box, the prospect was rejected. This process was hence named 'blackballing'. During the latter part of the 20th century, the trend towards memberships in friendly societies deteriorated. Friendly societies lost over 30% of their total assets in four years between 1996 and 2000. As government assistance became more prevalent and tax benefits once given to the societies' insurance bond dwindled, it became more economically beneficial to become a customer rather than a member. In 2002 IOOF demutualised and distributed their accumulated wealth across its approximately 70,000 members. At the time of demutualization, IOOF was valued at $135m to $158m

On 5 December 2003, IOOF floated on the Australian stock exchange opening at $3.80.

Financial Advice
This division of IOOF delivers advice to clients helping them: •	Invest tax-effectively •	Choose the most appropriate investment strategy •	Make the most of your super •	Protect assets •	Plan for retirement

Investment Management
The investment management division allows IOOF to invest their client’s money in a range of financial instruments including stocks and bonds. As of May 2021, IOOF offers four investment products to clients.

IOOF MultiSeries

IOOF MultiMix

IOOF WealthBuilder

IOOF Pursuit Select Investment Service

Superannuation
IOOF offers to manage client’s superannuation through four products:

- IOOF Pursuit Personal Super

- IOOF Personal Super

- IOOF Employer Super

- AET self-managed super solutions

Estate & Trustee Services
Through this division, IOOF offers a range of services that aid clients with organising and planning estate and trustee activities. These services include:

- Wills and Estate Planning –IOOF helps clients plan how to distribute assets

- Estate Administration - identifying, managing and protecting all assets to paying debts until the process is complete.

- Trust Services

- Philanthropy

Acquisitions
Acquisition of MLC On the 31st of August 2020, IOOF released an announcement on the Australian Stock Exchange (ASX) stating that it would acquire 100% of NAB's wealth management business (MLC) for AUD 1.440 billion. This deal to buy its 134-year-old rival would see IOOF's funds under management (FUM) to increase from $202 billion to a headline figure of $510 billion according to investor documents released on the ASX. Should this acquisition be successful, it would make IOOF the largest provider of financial advice in Australia.

Acquisition of ANZs Pensions and Investment (P&I) Business: On 3 February 2020, IOOF announced the successful acquisition of ANZ’s OnePath Pensions and Investments Business for $825m, which was down $125m (15.2%) from the original takeover price of $950m, announced on 17 October 2019. IOOF originally announced the plan to acquire OnePath in on October 17 2017 with the company entering a trading halt pending the capital raising of $450m through institutional placements.

=== Other IOOF Subsidiaries === Australian Executor Trustees

Bridges Financial Services

Consultum Financial Advisers

Financial Services Partners

Lonsdale

Millenium 3

RI Advice

Shadforth Financial Group Limited (Shadforth)

Timetastic

Structure: Executive Team
As of 23/04/2021

Renato Mota - Chief Executive Officer

Adrianna Bisogni - Group Company Secretary

David Chalmers - Chief Financial Officer

Dan Farmer - Chief Investment Officer

Lawrence Hastings - Chief Legal Officer

Sharam Hekmat - Chief Information Officer

Frank Lombardo - Chief Operating Officer

Mark Oliver - Chief Distribution Officer

Lorna Stewart - Chief Risk Officer

Mel Walls - Chief People Officer

Chris Weldon - Chief Transformation Officer

Darren Whereat - Chief Advice Officer

IOOF Foundation
In order to recognise the long history of providing support to the community as a friendly society, throughout the process of IOOF’s Demutualisation in 2002, the company formed the IOOF foundation. The foundation provides grants that aid Australian not-for-profit organisations primarily working with disadvantaged families, youth and aged care. According to the ACNC, which the IOOF foundation registered with on 7 May 2014, IOOF gives priority to aged care initiatives that commit to improving the quality of life for individuals and their families that struggle to be self-sufficient by providing long-term solutions that help families move out of poverty or avoid a crisis. IOOF also supports disadvantaged children and youth by funding educational initiatives that help break the cycle of disadvantage. The foundation will favour applicants that address the need for education and training for young people.

As of 30 June 2019, the IOOF foundation had donated over $14.5 million to in excess of 200 charities Australia wide. In 2020, the foundation donated over $883,000 across Australia.

Application Guidelines
In order to be eligible for funding from the foundation, the prospect charity must be represented and mange programs within Australia and must have an Australian Taxable Office Deductible Gift Recipient (DGR) endorsement. This ensures that the organisation that donate funds can deduct the amount from their taxable income. . Funding from the general grant program is for funding of around $30,000 per year for up to two years however, grants can range from $10,000-$150,000 per annum.

Foundation Partners
Aged Care

Maggie Beer Foundation

Menzies Research - Hobart

Parkinson's Australia (WA)

Wintringham Families

Mama Lana's Community Foundation

Rural Aid

Spinal Research Institute

TAD

Very Special Kids

Children and Youth:

The Smith Family

Colman Foundation

Girl from Oz

Red Dust

Role Models

Youth Focus WA

MLC Takeover
The announcement that IOOF would purchase MLC resulted in a negative reaction from most shareholders which saw the share price fall from a pre-announcement trading halt on August 27 price of $4.63 to a close of $3.83, a 20% decline in 3 months. At the annual general meeting, almost one-fifth of shareholders voted against IOOF’s remuneration report amidst ongoing concerns from investors. Shareholders were not unhappy with the acquisition of MLC, rather with the price that IOOF agreed to pay. . The CEO of IOOF, Renato Mota rejected the accusation that IOOF overpaid stating 'By any measure, we did not overpay'. . However, even notable analyst Morningstar described the MLC acquisition as ‘high risk’ in terms of risk imposed on the company’s balance sheet but stated that they are confident that these issues can be dealt with in the appropriate manner.

2018 Disqualification of Top executives
In December 2018, the Australian Prudential Regulation Authority (APRA) moved to disqualify five top IOOF executives accusing them of breaching the Superannuation Industry Supervision (SIS) Act and failing to meet prudential standards. . According to APRA, IOOF allegedly made an accounting error which resulted in members not receiving the full amount they were entitled. . Instead of compensating the members using company resources, IOOF was accused of using member’s reserves from their superannuation fund to compensate the members. In light of the publication of the scandal, the value of IOOF fell $900 million with its share price falling 35.4 per cent, to a nine-year low. In September 2019, APRA failed to disqualify the executives with a 300-page judgement failing to prove the case which was subsequently ruled out by Justice Jayne Jagot. As a result of the inquiry from APRA and the subsequent crash in the share price, IOOF released a statement to the ASX announcing that the current CEO at the time, Chris Kelaher, would leave the company following his return from leave.

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