Insignia Financial Ltd. (IFL) Earnings Call Transcript & Summary

Good morning, ladies and gentlemen. Welcome to the 2021 Annual General Meeting of our shareholders. With participants from all over the country here today, I'd like to start by acknowledging the traditional custodians of the lands on which we meet. Where I stand, I acknowledge the Wurundjeri people of the Kulin Nation and pay my respects to elders past, present and emerging. Last year, I described the 2020 financial year as one of volatility, change and disruption. Even so, we could not have foreseen the effects of COVID-19 pandemic would continue to impact our lives profoundly in 2021. The persistent effects of the pandemic underscore that 2021 would require a new type of resilience, a resilience that would draw on the dogged stubbornness of overcoming adversity, a resilience we have come to know as the Australian way. Thankfully, the prospects for the world economy have brightened. In May this year, the Reserve Bank of Australia noted the Australian economy is transitioning from recovery to expansion phase earlier and with more momentum than was anticipated. We can start to look forward to shaping the future rather than surviving through the present. The question is, what does the future look like? One way of seeing into our future is to refer to the government's intergenerational report. Released in June this year, the report gives a glimpse of -- into how Treasury thinks the country and the economy will look in 4 decades' time and how particular policies will shape and change the outlook. The report paints a picture of a country dealing with a smaller-than-expected population growth and a large and aging population that will continue to put greater stress on welfare and health services. The long-term economic impact of the pandemic will also be outlined in the report and it's sobering. In forecast, the budget will remain in deficit for at least another 40 years, improving to 0.07% in 2036, '37 and then widening to 2.3% by 2060, '61 as the effects of [ ageing ] take hold. That said, for every megatrend, there's a counter trend. The report quietly signals a shift in financial power to the millennial generation. These people born between 1980-1995 will be the recipients of $3.5 trillion wealth transfer from the baby boomers. By 2030, millennials also expected to earn $2 out of every $3 in Australia. Today, consumers are seizing on record low interest rates to take out a mortgage, invest in shares, start a business or reconfigure work arrangements to support their goals and adapting to change work patterns, digitization and higher earning potential. More than ever, this brings into focus the relevance of IOOF's strategy and value proposition, the importance of financial well-being. According to the Australian Stock Exchange investor study undertaken in 2020, consumers last year saved $200 billion, and 2.5 million consumers began investing for the first time. Interesting, a 1/4 of new investors were aged between 18 and 24. Millennials will need the skills and support to understand and look after more wealth and more risk as they inherit statistically greater sums than any previous generation. Informed financial decisions can be the difference in reaping those benefits or wearing the risks after it's too late. And we need to consider a generation inheriting statistically higher levels of wealth than their parents, but with ugly, a harder job of making it themselves. Access to information neither equates to being informed nor being advised. For example, only 35% of Australians aged 25 to 34, consider themselves well informed when it comes to their superannuation. 2 in 3 reportedly cannot name the age at which they will be able to access their superannuation savings. Now our own research backs us up. The true value of advice report we published in 2020 identified 90% of advised clients feel that accessing financial advice has left them in a better position financially and 89% reported that receiving advice allowed them to live the desired lifestyle even in a COVID-19 context. As to how helpful their financial adviser has been in managing the impact of COVID-19, 84% of advised investors say they have been extremely or very helpful. Further, advised clients say it provides them with improved mental health, less worry and stress and a better relationship with family and friends. And this is the ultimate test of financial well-being. Financial advice is, for the most part, facilitating this change. However, what this means is Australians with limited financial means still have considerable unmet advice needs. We have a current and growing advice gap. This poses at least 6 challenges and impacts for Australia's financial advice sector. And these include: firstly, a surging demand for scaled and single-issue advice; second, compliance. Compliance is now a core function of an advice business and a key driver of trust, but also of cost; third, a reducing number of financial advisers capable of providing financial advice on a per capita basis; fourthly, rising barriers to entry to the profession with new entrants and existing advisers required to complete a Financial Adviser Standards and Ethics Authority, or FASEA as it is known, approved bachelor's degree to meet these standards; fifth, a reduced social license and trust in the profession. And finally, and probably the most worrying, is the rising risk of unlicensed advice and the emergence of influencers. I've said it before, we have a once-in-a-generation opportunity to create the leading advice-led financial services organization, delivering affordable and accessible financial advice to all Australians, and we are seizing that opportunity. 5 months on from the completion of the acquisition of MLC, we have tackled the simplification agenda with urgent though measured, planning and implementation. As with all major transformations, there have been folks in the road. These folks have typically represent opportunities to access options, which advance our safety towards our desired feature state quicker, smarter and cheaper in the long run. One of these folks is our response to the increasing prominence of environmental, social and governance, ESG issues. ESG builds on the ideas put forward by the socially responsible investment movement that applies financial rather than more relevance to the model. The increasing adoption of ESG management systems is driven by 2 concurrent trends. First, significant social pressures. A shift in expectations for private enterprise and ongoing regulatory changes have increased demand for us to proactively take responsibility for potential externalities affecting the environment and society. Second, there is a growing recognition amongst investment and business professionals that ESG issues can have a material impact on the company value and that management of such risks can preserve and even enhance economic value for companies and their shareholders. Why? Because a business that is reducing or neutralizing the carbon intensity, diversifying its supply chain and applying strong data governance is a safer investment than one that isn't. The evidence of this momentum lies in a significant tilt towards sustainable investing. Bloomberg Intelligence estimates that ESG assets are likely to reach 53 trillion by 2025, 1/3 of global assets under management. Globally, the percentage of both retail and institutional investors that apply ESG principles to at least 1/4 of their portfolios jumped from 48% in 2017 to 75% in 2020. To that end, the Board and I are committed to deeply understanding and acting appropriately to address climate change risk in the business. And we are guided by the Paris agreement, the recommendations of the task force on climate-related financial disclosures and the Hutley opinion on responsibility of company directors in Australia. Not to mention the regulatory and prudential guides on the management of climate change risk as issued by both APRA and ASIC. Whilst climate change receives the lion's share of attention, It's important not to overlook the S in ESG, and we are playing our part. In 2021, the IOOF Foundation continued to support outstanding charitable organizations and invest in our communities. More than $700,000 in grants were awarded in the areas of mental health, aged care, families and at-risk children and youth. This brought the total funds distributed since inception to more than $16 million. I extend our gratitude to the trustee directors for their ongoing commitment, led by the Chair, Ms. Angie Dickschen. In closing, against the backdrop of a challenging socioeconomic operating environment, I'm enormously proud of the way the business is steadfastly pursuing its transformational agenda. Despite the challenges, we hold to our strategy with great conviction. We believe in the business, and we are confident we will deliver to you our shareholders' considerable value over time. I'd like also to thank the Board for their guidance and oversight. Renato and the executive team, and importantly, the thousands of dedicated staff who have worked tirelessly towards realizing our ambitions. I'll hand over to Renato to update you now on just how we're doing that. Thank you.

Thank you, Allan. I'd like to extend a very warm welcome to you all, and thank you for attending our 2021 Annual General Meeting. I trust that after a challenging year, we're all enjoying the easing of restrictions, allowing us to reconnect with our communities. Allan spoke of the external environment we face, a challenging Australian landscape that sees an increasing number of people in need of financial advice, coaching, guidance to help them navigate their financial future. In other words, the need and desire by Australians to seek assistance in pursuit of financial well-being has never been greater. This knowledge is our source of conviction and connection to our purpose. We believe we have substantial opportunity to improve the financial well-being of all Australians, whatever their circumstances. We also focus on growing a profitable sustainable business that delivers accessible and affordable outcomes to cater for all client life stages. Since we last met, much has been achieved. In fact, everything we've successfully delivered in this past year is strategically aligned to these objectives. Our financial performance for the 2021 financial year has been strong with underlying net profit after tax of $147.8 million from continuing operations, up 19% on the prior year. After taking into account a noncash goodwill write-down and MLC integration costs, we reported a statutory net loss after tax of $143.5 million. Revenues of $770 million were up 31%, including the full 12-month contribution from the Pensions & Investments business, P&I, acquired from ANZ and only 1 month of MLC. This increase in revenue and underlying profit is evidence of our commitment to growth through transformation and acquisition. We're also pleased to be able to deliver a total full year dividend of $0.23 per share, made up of $0.175 ordinary dividends and $0.055 per share special dividends. Our balance sheet remains strong, and we're confident it can continue to support the ongoing and sustainable reinvestment. The last 12 months have been a transformational period with the successful completion of the MLC acquisition on 31 May. The purchase of MLC provides more than just scale. It provides us with diversity opportunity and new avenues for growth. It represents a once-in-a-generation opportunity to do things differently for the benefit of our clients and ultimately you, the owners of the business. It was pleasing as part of the acquisition to welcome more than 400 advisers to our licensed advice business as part of cementing ourselves as the leading advice community for both advisers and the clients they serve. As we have shared with the market, the self-employed adviser channel, excluding the MLC additions, is transitioning to a sustainable model and is expected to be on a breakeven run rate basis by the end of this current financial year. The integration of MLC Advice is focused on introducing IOOF technology, including Wealth Central, with a positive early response. Our new sustainable self-employed licensing model will also translate to additional economic benefits from MLC advice over the next few years. Ensuring the advice model is affordable, accessible and sustainable in its own right, remains a key deliverable. This ambition is built on the principles of economic sustainability, high professional standards and delivering client satisfaction. Moving now on to the Platform business. The strategic context here is one of net operating margin expansion through simplification. One of the reasons we focus on net operating margin is we've recognized gross margin is likely to fluctuate as we expect to continue to deliver improved client outcomes by way of lower fees as we go through stages of simplification. Putting clients at the center of our business represents a key source of future growth. We've already achieved scale on our modern and proprietary technology platform Evolve, providing us a solid base to support our continued growth through simplification and increased market share of net flow. The other important element to consider from a platform perspective is the funds flow profile, and it's a tale of 2. While our contemporary Evolve offer continues to increase its rate of growth, clearly, we have a challenge and an opportunity both around the Pensions & Investments business as well as MLC. With P&I, my expectation is a breakeven net flow profile by the second half of the 2023 financial year. Net funds flow represents a key barometer of future sustainability. So it remains imperative that we build future growth on a simpler business model with lower cost to serve. Reducing the cost to serve will be achieved through the rationalization of platforms and the elimination of inefficiencies that arise from double handling manual processes and the phasing out of dated systems. Implicit in our evaluation of the recent acquisitions is an acknowledgment that the acquired businesses have suffered from a lack of commitment to transformation. And it's here that IOOF can both add and derive value. We have a proven blueprint platform simplification, as shown by our Evolve21 program, the second and final phase of which is expected to complete next month. Simplification is an imperative, not just for us, but for the industry at large. Over the past decade, I believe the industry has not done enough to drive simplification for the benefit of clients. For IOOF, this is a key focus. Why? Because the pursuit of simplification is about building solid foundations that maximize the translation of future growth into earnings. It's from this base of leading cost to serve, proprietary technology capabilities, a purpose-led and agile organizational culture and depth and breadth of investment capability that I'm confident we can deliver great market relevance and net flows across our diverse businesses. Allan mentioned in his addressed the notion of forks in the road, requiring agility to seize on opportunities as they arise. This has certainly been evidenced in our integration planning as we look to accelerate product and platform simplification. As we indicated to the market in October, the possible change in our approach may deliver additional synergies and come with additional implementation costs. We'll keep you informed as we work through the analysis. That said, our projected goal of achieving cost efficiencies of $218 million per annum by the end of the 2024 financial year remain on track. While the transformation we're undertaking is incredibly significant in today's context, these changes are only a small fraction of the change IOOF has gone through over the last 175 years. From our origins as part of the independent order [indiscernible], a friendly society, caring for people in need, to a top 200 ASX-listed company, we've grown to become one of Australia's leading wealth service providers. To better reflect the organization we are today and our focus on creating financial well-being for all Australians, we put forward to shareholders a proposal to approve the renaming of IOOF Holdings to Insignia Financial. The name Insignia represents a distinguishing emblem, which is associated with membership and belonging. It strongly connects with our purpose of understand me, look after me, secure my future. This decision comes at an important inflection point in our organization's transformation. We're proud of our heritage, who we are and what we stand for. Of course, this doesn't change. However, today, we can build on that path through a new corporate brand that captures the essence of our history in a more contemporary way. Subject to your approval, Insignia Financial will be our new enterprise brand and the umbrella brand for our portfolio of client-facing brands. Importantly, it will be our brand for employees uniting our people from across 3 heritage businesses with a common purpose and ambition. It's also the brand that will apply to you, our shareholders, as it will to regulators, government and other key corporate stakeholder groups. For our people, Insignia symbolizes inclusion, no matter what their background, where they've joined us from. Together under Insignia, we will be one, an organization where everyone feels they can belong. Once approved, we will begin to rebrand our corporate identity to Insignia Financial. This won't happen overnight, however. We will take a phased approach. As part of our brand strategy work, we're performing a review of all brands in our suite with a focus on understanding how we can best meet the needs of our clients and support future growth. The MLC brand is an important asset which will continue to play a key role as a client-facing brand. IOOF has a long history of supporting Australians and their financial wellbeing, and we look forward to continuing to do so under the banner of Insignia Financial. In closing, I want to acknowledge and thank the more than 5,000 people that commit themselves to the IOOF journey. It's been an incredibly disruptive time in our communities, and I'm humbled by their commitment and passion for the transformation of IOOF. To you, our shareholders, thank you for your ongoing support in what has been both a challenging and successful year. I know we have the right strategy, people, governance and operational structures to continue to deliver financially for years to come. So thank you.

Thank you, Renato. The Notice of Meeting was made available to all members within the required period, and if there are no objections, I will take the notice as read. Voting today will be conducted by a way of a poll of all items of business. In order to provide you with enough time to vote, polling on the resolutions is open on all items of business. Please submit your votes at any time during the meeting. As detailed in the Notice of Meeting, voting is restricted to the number of shares each security holder holds and is also subject to any applicable voting exclusions. To assist with the voting, [ Mr. Steve Hodkin ] from Boardroom is acting as returning officer for this meeting. [Operator Instructions] If you're eligible to vote at this meeting, a new polling icon will appear at the top of the screen. Select this icon will bring up a list of resolutions and present you with the voting options for each resolution. To cast your vote, simply select one of the options. There is no need to hit a submit or enter button as the vote is automatically recorded. You do however have the time and the ability to change your vote up until the time I declare the voting closed at the end of the meeting. As I put each resolution at today's meeting, I will address any questions that have been received in relation to that resolution. Discussion relating to the first resolution concerning the receipt of financial statements may include questions or comments arising from either my address or Renato's presentation. At this meeting, there will be 6 items of business, including 5 resolutions. As stated in the Notice of Meeting, there is no vote required on the first item of business, the receipt of financial statements and reports. There are vote boxes alongside this item on the proxy form, which is incorrect, and we apologize for this error. The first resolutions, items 2, 3, 4 and 5 will be proposed and voted on as a simple majority to be carried. The fifth resolution, item 6, is a special resolution and to be passed requires at least 75% of the total votes cast by shareholders entitled to vote on the resolution. There have been proxies received in respect of today's resolutions, which will be disclosed when those resolutions are considered. As mentioned in the Notice of Meeting, it is intended that any undirected proxies given to me as the Chairman of the meeting will be voted in favor of the relevant resolution. The poll voting will be counted by the share registry, and the results of the poll will be notified to the ASX and published on the company's website following this meeting. We'll now proceed to the first item on the agenda. The first item of business is the consideration of the financial statements and reports. The financial statements for the year ended 30th of June 2021, the director's report and the auditor's report were included in the 2021 annual report. They are also available on the IOOF website. There is no vote required on this item of business. Shareholders have had the opportunity to submit questions prior to this meeting, and we'll have the opportunity to raise questions on these reports or any aspect of the company's operations. Shareholders may also ask questions of the company's auditor. Such questions need to be relevant to the conduct of the audit, the preparation and the content of the audit report, the accounting policies adopted by the company and the independence of the auditor. No questions for the auditor were submitted prior to the meeting. I may also refer questions on operational or accounting details to management. Answers to the questions received in advance from shareholders will now be answered.

I've received 3 questions from a volunteer monitor on behalf of the Australian Shareholders Association. The first question from a volunteer monitor on behalf of the Australian Shareholders' Association is as follows: IOOF has acknowledged that, like other similar financial organizations, its profit margins are under pressure. Seemingly, the bulk of IOOF's Investment Fund Management is undertaken by external organizations. For instance, the OptiMix Investment Fund is now managed by U.S. fund manager, Invesco. Is IOOF considering bringing more fund management tasks in-house in order to improve margins? And IOOF's response is that our primary focus is ensuring we deliver optimal outcomes to members through investment performance and to do so as efficiently as possible. We adopt a combination of in-house capabilities as well as outsourcing to third-party managers where we feel that provides a better trade-off between performance and cost. Through the acquisition of MLC, the IOOF Group, now has enhanced investment capability across diverse asset classes with all investment managers, both internal and external, we'll utilize our scale to ensure investment fees are as competitive as they can be to benefit clients, to lower the cost of manufacturing. This was a key driver in the appointment of Invesco to manage a range of index-based investment strategies. It's also critical that the appropriate governance is adhered to in investment decisions to ensure we appropriately manage potential conflicts where we have a strong controls to ensure these decisions about manager appointments are made with our obligations to members being central to that decision. The second question from a volunteer monitor on behalf of Australian shareholders is as follows: The company's first quarter full year '22 update noted that adviser numbers now total 1,883, down 65 for the quarter. Are we seeing adviser numbers stabilizing? Or can we expect more to leave the IOOF stable? IOOF's response is that it conducts its advice business in 3 key segments: employed, as we see in Shadforth and Bridges; self-employed, licensed to one of our licensed dealer groups; and self-licensed as we see under our alliances. We expect stability in our employed and continued growth in our self-licensed channels. However, we anticipate a further decline in self-employed licensed advisers between now and December due to FASEA and the suitability of our strategy for associated support model include a higher governance standards. Given the time required to fully exit an adviser in the self-employed license channel, we expect that the low point will be observed in the March '22 quarter. With a focus on improving efficiency and continued investment in our proprietary technology, we expect a return to growth thereafter. The third question and the last question from a volunteer monitor on behalf of the Australian Shareholders Association is as follows: Will the corporate rebranding to Insignia signal our marketing push designed to stand fund losses to platforms such as Netwealth and HUB24? IOOF's response is that the proposed change of the name to Insignia Financial as part of our transformation program is for the enterprise brand only. It signifies an important inflection point where we acknowledge the need for the corporate brand to reflect who we are today and the opportunities that lay ahead. IOOF has also undertaken a strategic review of brand architecture across the portfolio of brands and propositions to consider what role each plays in the newly transformed business, and we remain committed to a multi-brand strategy. In addition, as communicated in IOOF's Q1 2022 business update, a holistic product and platform review process is underway, incorporating the MLC business to address platform outflows. Noting, of course, the strong flows in the adviser-intermediated Evolve platform and MLC Wrap products. We remain on track to substantially simplify our platform environment through the delivery of the second and final phase of Evolve 21 migration in December. I will now ask our Head of Investor Relations to advise whether any questions have been received in relation to the annual report or arising from either my presentation or Renato's presentation. [ Cary ], have there been any further questions?

Yes, Chair, there has. There's been 4 questions submitted from [ Alaba Pty Ltd ]. The first 3 relate to the Investor Relations function and then there's a fourth relating to the fintech sector. So the first 3 questions are, does IOOF have a dedicated Investor Relations team or is this important function outsourced? Secondly, why is there no direct Investor Relations contact details on the website. There's only a generic contact for all inquiries. And thirdly, what plans does the company have for deepening its engagement with us, the owners of the business? And the fourth question relates to the fintech sector is does the company engage with the rapidly evolving fintech sector for innovation and/or opportunity?

Okay. Just to help me [ Cary ], just give me the first question again. I'll work through them.

Yes. So does IOOF have a dedicated Investor Relations team or is this important function outsourced?

Yes, we do have a dedicated investor team, and we also utilize external sources as well. So it's a combination of both.

The second question is why is there no direct Investor Relations contact details on the company website? There's only a generic contact for all inquiries.

To be honest, I wasn't aware of that, but I'll look into that and make sure if that's the case that we have it fixed.

Thirdly, what plans does the company have for deepening its engagement with us, the owners of the business?

Well, a number of ways, actually. I personally get involved with investors. I have a round of investor meetings, and I'll be more than happy to meet with this group of investors at any time as well, but I make myself available at any time to meet with investor groups. Likewise, the management team, particularly Renato and the Chief Financial Officer, David, are continually having investor updates, strategy days, et cetera. So there is a continuous program, and we'll make sure that's communicated to the group, and they have the details of when they come up. So there is an extensive program in place.

And the final question from [ Alaba Pty Ltd ] is does the company engage with the rapidly evolving fintech sector for innovation and/or opportunity?

Without doubt. And we've got 1 particular board member. This is a particular, I suppose, area that he is continuing to engage on. And if people look at his background, they can see he's been heavily involved in this sector. We do get briefings as a Board, to make sure that we are staying abreast of movements in that particular area. And more importantly, the digitization of the business.

No further questions at this time.

So no other further questions, [ Cary ], coming in from any investors at all?

Not at this time.

Okay. Thank you. So if there are no further questions, I declare that the financial statements and reports have been tabled at the meeting and have been duly received and considered. The remaining items on the agenda require resolutions from the meeting. Following discussion of each of the item of business, I will display details of the proxies on the screen. As the next item relates to my reelection, I will hand over this part of the meeting to John Selak, Chair of our Remuneration Committee, to chair this next part of the meeting. Thank you, John.

Thank you, Allan. The next item is the reelection of Allan Griffiths as Director. Allan has been a Director of the company since 2014 and has been the Chair since 2019, April 2019. In accordance with the company's constitution, Allan holds office until this meeting and is eligible -- and being eligible offers himself for reelection. Allan has more than 40 years' experience with a deep understanding of the financial services industry. Allan held a number of executive positions within the industry, most notably as Chief Executive Officer of Aviva Australia and later, as Managing Director of South Asia, Aviva Pacific PTE based in Singapore. Prior to joining Aviva, Allan held executive positions with Colonial Limited. Allan was Chairman of Westpac General Insurance Limited, and Westpac Lenders Mortgage Insurance Limited until the 31st of August this year. He is still the Chairman -- currently the Chairman of Westpac Life Insurance Services Limited and Metrics Credit Partners. Allan has brought a highly valuable set of financial services, skills and expertise to our Board. Your Board endorses and recommends the reelection of Allan as a director. I will ask our Head of Investor Relations to advise whether any comments or questions have been received in relation to Allan's appointment?

There are no questions.

Thank you. The -- because there were no questions, details of the valid proxy votes on the resolution will now appear on the screen. I intend to vote any open proxies in favor of the resolution. Thank you, Allan. I'll hand over to Allan to complete the rest of the meeting.

Thank you, John. The next item, Item 2B, is the election of Andrew Bloore as Director. Andrew has been a Director of the company since 2019. In accordance with the company's constitution, Andrew holds office until this meeting and, being eligible, he offers himself for reelection. Mr. Bloore is an experienced Non-Executive Director, entrepreneur and farmer. He has designed, built and sold a number of businesses focused on the development of key disruptive technologies and distribution services in traditional markets to create business efficiencies. Mr. Bloore has been actively involved in both as an executive and as a director in the capacity of investment funding, development and leadership companies, including Smart Super, SuperIQ and Class Super. Mr. Bloore has worked in a range of Senate and Treasury committees and with the Australian Taxation Office Regulations Committee on regulation for the superannuation industry. In 2016, Mr. Bloore sold his superannuation administration business to AMP, stepped down from the Senate and Treasury committees and is now focused on contributing to organizations as a nonexecutive Director. Your Board endorses and recommends the election of Andrew as a Director. I will ask our Head of Investor Relations to advise whether any comments or questions have been received in relation to Andrew's appointment. [ Cary ], have there been any comments or questions?

There are no comments or questions.

Thank you. Details of the valid proxy votes and the resolution now appear on the screen. I intend to vote any open proxies that I hold in favor of the resolution. The next item of business is the adoption of the remuneration report. The Corporations Act provides that the vote on the remuneration report, having trouble with that, is advisory only and does not bind the company. The rem report format includes a snapshot of our policies and practices and aims to effectively communicate our rem arrangements to shareholders. The company's rem report for the period ended 30th of June 2021 is included at Page 49 of the annual report. I'll ask our Head of Investor Relations to advise whether any comments or questions have been received in relation to the rem report. [ Cary ], have there been any comments or questions?

There are no comments or questions.

Thank you, [ Cary ]. Details of the valid proxy votes and the resolution now appear on the screen. I intend to vote any open proxies that I hold in favor of the resolution. The next item of business is the grant of performance rights to the Chief Executive Officer. As we explained in the rem report and Notice of Meeting, the value of the performance rights to be granted to the Chief Executive Offer was determined by the Board as part of the Chief Executive Office Total Reward package, which was reviewed as part of the redesign of the executive rem framework. The proposed terms, the performance rights are explained in the rem report at Section 3 and include provision for variable rem provided in the form of securities in the company as part of the company's executive equity plan. The executive equity plan was introduced as part of the redesigned executive rem framework. The Executive Equity Plan framework supports IOOF's cultural and rem principles and the measures underpinning the framework are aligned with key strategic value drivers of the business, both short and long term to enable enduring performance. The performance rights upon which you are now asked to vote will be assessed by a total shareholder return performance hurdle as well as financial and nonfinancial measures as set out on Page 7 of the Notice of The Meeting and Page 51 of the annual report. I'll ask our Head of Investor Relations to advise whether any questions have been received in relation to the grant of performance rights to the Chief Executive Officer. [ Cary ], have there been any comments or questions?

There are no comments or questions.

Thank you. Details of the valid proxy votes and the resolution now appear on the screen. I intend to vote any open proxies that I hold in favor of the resolution. Item 5. This item relates to the increase in the total fee pool for nonexecutive directors. The maximum aggregate rem that may be provided by the company to the nonexecutive directors is currently $1.250 million. This was approved by shareholders at the 2013 Annual General Meeting. The company is seeking shareholder approval to increase the maximum aggregate nonexecutive director rem by $500,000 per annum to $1.750 million per annum per financial year for the following reasons as set out in the Notice of the Meeting: a, the continued increase in the size and the scale of the operations of the company; b, to provide headroom and flexibility to allow increases in the size of the Board, if and when appropriate, including to manage board succession; c, to ensure that the company has the ability to set fees at a competitive level so that it can afford and retain the services of nonexecutive directors of the highest caliber and to allow for a future increase in fees to reflect increasing workload and demands on nonexec directors as a result of the increased size and complexity of the business, including nonexecutive director representation on the various subsidiary boards. At present levels, directors' fees equate to $902,500, taking up approximately 73% of the total pool, leaving little capacity to further increase or the ability to appoint an additional director should the Board require one. Shareholders should also note that if the proposed new total fee pool is approved, it will not necessarily be fully utilized each financial year. The company will, in future, continue to set the actual level or level of rem of its nonexecutive directors within the total fee pool, having regard to independent external advice, market practice or performance and other appropriate factors. The rem of each nonexecutive director for the financial year ending 30th of June 2021, is detailed on Page 59 of the 2021 annual report. Shareholders should note that this increase does not relate to the rem paid to the executive directors, such as the Chief Executive Officer. Executive Directors are not remunerated by this pool. Given their personal interest in this subject matter of this resolution, your Board makes no recommendation to shareholders on this resolution. The company has received the proxies displayed on the slide behind me in relation to this resolution. I intend to vote any open proxies that I hold for the resolution. I'll now ask our Head of Investor Relations to advise whether any questions have been received in relation to the increase in the total fee pool for nonexecutive directors.

There's been no comments or questions.

Thank you. Details of the valid proxy votes and the resolution now appear on the screen. I intend to vote any open proxies that I hold in favor of the resolution. As we consider the last item of business, please ensure you have made your voting elections on the resolutions as I will shortly close the poll after the last item of business. This item relates to the proposed change of name to Insignia Financial Limited. A special resolution of shareholders must be passed to adopt a new company name. IOOF was founded in 1846, as a friendly society with the purpose of providing financial welfare for members and their families in times of need. While the underlying principles of understanding and helping people remains, our organization has significantly evolved. Following the demutualization of IOOF in 2002, shortly followed by our public listing in 2003 and the ongoing growth and diversification of the business, we believe it is time to change our name to better reflect the business we are today. Accordingly, we have selected a name that respects our heritage, while also reflecting who we are today. We have progressed from our origins providing financial welfare to Australians to being an industry leader in wealth services, believing that everyone deserves to feel confident about their financial future. Our ambition is for Insignia to be the symbol for financial well-being in Australia, making financial literacy, coaching, guidance and advice as well as products and services more accessible to more Australians. Under our new umbrella, Insignia Financial Limited, brands familiar with to the market, including MLC, Bridges, Shadforth, TenFifty, Lonsdale, RI Advice, Millennium 3, Consultum, Godfrey Pembroke, Australian Executor Trustees, InterMed, Fairview, Prisma, Orchard St and Antares will continue to exist. The name Insignia means a distinguishing emblem that is associated with membership and belonging, which strongly connects with our origins as a friendly society. The new brand logo in here it's ring symbols and the centered green color from our heritage brand to support the transition. IOOF anticipate that the cost of changing to the new corporate brand will be $2 million to $3 million, funded from the existing transformational and integration budget. Following approval from shareholders of the change of name, the company will continue to trade on the Australian exchange as Insignia Financial Limited under the existing ASX code of IFL. Your Board recommends that shareholders vote in favor of this resolution. I will ask our Head of Investor Relations to advise whether any questions have been received in relation to the proposed change of the company name to Insignia Financial Limited. If shareholders approve the change of name, the company will lodge the necessary application with ASIC and then the name change will be effective within the coming weeks following formal ASIC approval. [ Cary ], have there been any comments or questions?

No comments or questions in relation to the name change.

Thank you. Details of valid proxy votes and the resolution now appear on the screen. I intend to vote any open proxies that I hold in favor of the resolution. That now concludes the formal part of the meeting. I now confirm the poll has closed. The results of the poll will be announced on the ASX announcement platform and placed on the IOOF website later today. I can advise that based on proxies received and the votes available on the floor that it's likely that each of the resolutions put forward today will be carried. Ladies and gentlemen, the business of the meeting is now concluded. I thank you for your attendance, and I declare the meeting now closed. Thank you.