Ann: Investor presentation - IOOF FY 2018 results, page-72

Well, it’s most unusal for me to be pleased about a purchase, usually it’s on a sale that I feel pleased/relieved, but I must say Buying ifl at 850, and a dividend yield of 6.5% fully franked is quite pleasing.

Absolutely. IFL is almost being priced by the market as if its dividend were unsustainable. In actual fact, I cannot think of many scenarios under which its dividend yield will not be in the region of 10%, within a couple of years and based on current price.

Funny that both ifl and amp are down about 30% since the RC kicked off. One has had a complete overhaul of their management with no ceo, a reduction in dividend, a huge drop in profits, has been paraded around as unethical, and has large exposure to legacy payments, while the other has had an increase in underlying profit, stable dividend, stable management, significant growth over the next 3 years, and limited exposure to grandfathering.

Agreed, it does look to me like a case of throwing the baby out with the bathwater. Besides, from what has emerged so far from the RC, it also looks very unlikely to me that IOOF will be the target of any punitive measures that will not apply to the whole sector. And, if that is indeed the case, future net inflows could materially surprise to the upside, IMHO.