Ann: Investor presentation - IOOF FY 2018 results, page-11

"That "assuming stable economic conditions" statement needs to be adjusted for real market conditions. This probably assumes fee percentages do not decline. "

@CaptainBarnacles,

I'm not sure what the basis is for the assumption that fee percentages are no longer going to decline. For the better part of a decade, IOOF management have not only consistently acknowledged fee reductions, but have on umpteen occasions reflected that it is likely to continue to be a feature of the industry landscape [*].

So why do you think that at this particular point in time they would have adopted a view that fees are no longer going to fall?


[*] Why, they would probably argue that it is the very phenomenon of structural decline in fees that have allowed them to take advantage of corporate opportunities that have resulted in EPS going from 21cps in FY2009 (34.5cps in FY2010, being the first full-year of the merger with Australian Wealth Management) to the 80cps -90cps level that will be registered once the ANZ transaction is concluded. Some may therefore be of the view that IFL prospers not despite the structural pressure on fees, but because of it.