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## Managing Director’s overview 

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2012 has been a year in which IOOF invested time, energy and money in growing the business both organically and through acquisition. While financial markets globally remain challenging, I am pleased with the progress we have been able to achieve in the areas where we have the greatest influence. 

## IOOF’s strategic focus has yielded pleasing results 

Reputation as an experienced consolidator provides opportunities 

Financially, IOOF has performed positively in light of difficult external conditions during the year, particularly in comparison to others in the industry. IOOF reported a $19.4 million statutory profit and a $96.4 million Underlying Net Profit After Tax and before pre-amortisation result for the period ended 30 June 2012. 

Despite the difficult markets, the money we manage on behalf of our clients increased $1.1 billion to $107.3 billion. This movement is primarily a result of acquiring the funds under advice associated with DKN Financial Group Ltd (DKN) in late 2011. Offsetting that amount was a decrease in the market value of IOOF’s total client funds and some institutional outflows in Funds Under Management. 

## Organic growth 

DKN Financial Group fully integrated in 2012 

Announcement of Plan B acquisition post year end 

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## Growth through acquisition 

For yet another year, the growth we have experienced in our flagship platforms is ahead of industry growth. 

The strategic work undertaken in past years to improve IOOF’s flagship platforms has seen net flow growth in those platforms outstrip that of the industry. IOOF’s flagship platforms netflows have grown at 5 per cent compared to annualised industry growth of 1 per cent. 

Accompanying the continued outperformance of IOOF’s flagship products was the DKN acquisition that was completed towards the end of the 2011 calendar year. 

Further information on each of our four key segments, namely financial advice, platforms, investments and trustee services, can be found in the Divisional Update after my overview. 

More aligned advisers 

Investment in our brand and greater awareness 

Release of new products 

Refresh of existing products 

