IOOF keeps mum on investment returns

Wealth manager IOOF Holdings Ltd has refused to join competitors in disclosing current investment returns in what re-elected chairman Ian Blair says is likely to be another difficult year.

Chief executive Tony Robinson declined to give shareholders profit guidance for first half fiscal 2009, citing the impact of a 30 per cent fall by the S&P/ASX 200 in September and October on investment returns and revenue as proof robust guidance was illusive in these markets.

"These are incredible times," Mr Robinson told AAP after the annual general meeting in Melbourne on Wednesday.

"I have no sense of what happens from here.

"To try and give people a sense of it is really difficult."

As if to echo his comments, IOOF's stock plunged 39 cents, or 10.2 per cent on Wednesday, finishing at $3.41 a record low since its December 2003 listing.

Chief investment officer and executive director Tony Hodges told shareholders management was aware IOOF's stock was illiquid, but this is "a factor for the market".

IOOF's full year after-tax profit firmed five per cent to $23.4 million to June 30, 2008 on what Mr Blair, a chartered accountant, dubbed "silly accounting adjustments".

The underlying net profit after tax of $25.9 million, down 12 per cent on the previous year, was more realistic as it stripped out the impact of investment value write-downs, and the acquisition of asset manager Perennial Investment Partners Ltd.

Since posting its fiscal 2008 results, the funds manager suffered a 6.5 per cent drop in September quarter funds under management and administration (FUMA) to $1.9 billion on the previous corresponding period, resulting in a 25 per cent fall in FUMA over the 12 months to September.

But while Mr Robinson was at pains to explain the impact uncontrollable investment returns has on IOOF's revenue base, he declined to quantify investment returns since September 30.

"It's something I'm acutely aware of.

"We have stable net funds flow but investment returns have been negative since September 30 to today," he said.

"We don't think there's a huge gain in reporting more regularly than quarterly."

Mr Blair concurred with Mr Robinson despite being pressed by shareholder activist Stephen Mayne to copy rival Platinum Capital Ltd and "take the disclosure highroad" to reflect shareholder needs in times of market volatility.

"The result changes daily," Mr Blair said, before shareholders re-elected him to the top post.

Last week, Platinum reported a 0.29 per cent fall in pre-tax investment returns for October against a 4.13 per cent drop for the global benchmark Morgan Stanley Capital Index.

Going forward, Mr Blair said IOOF was "in very good shape" to weather what was "likely to be another difficult year".

IOOF is debt-free and has pared back business investment and distribution expansion to areas that have a very short cash pay-back period.

Acquisitions are on the radar, with more opportunities apparent than ever before, Mr Robinson said.

"We are talking to people all the time, but most of the discussions we've had evaporate," he said.

"We've got cash - not a material amount of cash but we're well placed structurally that if we wanted to do a major acquisition we'd have to really look at it."

Capital markets had changed again over the past two weeks, with banks looking to raise capital, he noted.

Of potential capital raisings, Mr Hodges said IOOF told shareholders "now is not the time to do new issues."