The IOOF (ASX: IFL) share price is currently up more than 4%.
What is IOOF?
IOOF is a diversified financial business that offers a variety of services to clients including financial advice, platform management & administration, investment management and trustee services. IOOF has been operating since 1846 and is now one of the largest financial services industry businesses.
Why the IOOF share price is rising
The ASX 200 (ASX: XJO) itself is up 1.6% this morning, so that explains part of the increase.
But IOOF today announced an update about the class action that it was served with about a year ago.
Today the financial services business announced that it has reached an agreement for the class action in the Supreme Court of New South Wales to be discontinued (with no order for costs).
The settlement requires court approval and the plaintiff has agreed to seek this approval at the earliest opportunity.
IOOF stated it’s making no payment to the plaintiff, its lawyers, its funder or any other class member as part of this settlement.
The company said it’s “very pleased with the outcome” as you would be if you managed to get through a class action without making any payments.
Is the IOOF share price a buy?
IOOF may be one to watch in the financials sector in the next few years. The big bank competitors are leaving the space and IOOF is one of the biggest remaining players for financial advice. It has a high dividend yield, though COVID-19 may cause a cut. It’s interesting, but I’m not a buyer.
But I think technology shares could provide better growth over the longer term:
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Disclosure: at the time of publishing, Jaz does not have a financial interest in any of the companies mentioned.
