Major institution shutters NZ business

IOOF has entered into an agreement to sell all client rights relating to its New Zealand-based Integral Master Trust (IMT) to Britannia Financial Services, ending IOOF NZ’s tenure as its manager.

Operating the IMT was IOOF NZ’s main purpose; the sale has effectively commenced its closure.

As at the end of March, the Integral Master Trust (IMT) held $553 million of funds under administration and more than 5,000 client accounts. 

IOOF chief executive Renato Mota commented: “The divestment of IOOF’s business interests in New Zealand reinforces our focus of simplifying the business around our advice-led strategy and opportunities.”

The sales proceeds and contribution to IOOF’s underlying net profit after tax of the Kiwi arm were said to be not material. 

The company stated the costs associated with winding down IOOF NZ are negligible.