IOOF  | Annual Report 2012 Further investment in  organic initiatives while  controlling costs IOOF remains well  positioned for changes in  the regulatory environment  Outlook for IOOF  Key acquisitions a clear  strategic fit Chris Kelaher  Managing Director page 9 While the external environment has  remained difficult, IOOF has worked hard on the facets of the business that  are within its control. Pleasingly, the early  signs of growth we have seen to date are encouraging. It has been an active year on the  acquisition front, firstly with the purchase  of financial advisory group, DKN in late 2011. Then, subsequent to the end  of the financial year, IOOF announced  that it was seeking to acquire wealth  management firm, Plan B. In addition, key changes made to existing products such as AET’s Small  Super products have repositioned them for future growth. The release of new low-cost products has seen encouraging growth in new  areas for IOOF, with flows to Pursuit Focus and TPS Essentials exceeding  internal expectations. As it is in all years, a result such as this  one is impossible without the continued  efforts of our leadership group and  employees. I would like to take this  opportunity to publicly thank each  and every one of our 1,040 employees  Australia-wide. During the year, IOOF invested in new and existing products. Importantly, there are early signs that the campaign has been successful, as awareness among financial advisers  has improved noticeably since the  advertising began.  IOOF is well placed to respond to these regulatory changes as a business.  The formation of a group-wide internal  team will allow the business to address  the product and system changes required  to conform with regulatory change whilst still growing the business. The strategic investments IOOF has made  during the financial year demonstrate our ability to grow the business in the key areas of distribution and platforms. The large volume of regulatory reform  remains a challenge for the entire  financial services industry. Even as at the  date of this report, many key elements of  these reforms have not been announced  or finalised by the regulators, making  implementation by the set deadlines  particularly difficult.  In 2012, IOOF embarked on an advertising  campaign aimed at increasing awareness  for the IOOF brand. Shareholders and  members based in Australia may have  seen the Melbourne based IOOF tram,  the IOOF branded bus in Sydney or the  advertising hoardings at Sydney’s Football  Stadium at Moore Park. IOOF’s strong record on controlling costs has been a feature of the company  in recent years. During 2012, we have  been able to invest wisely in important  areas of our business, like marketing,  technology and our employees, while  continuing to control expense growth in other areas to at or below inflation.  Technology is an important part of IOOF’s business, as it supports the  underlying products and service offerings  IOOF promotes. During 2012, IOOF  continued to invest in those systems to ensure they remain contemporary. DKN has now been successfully  integrated into the business, and is adding new advisers to its Lonsdale  network, together with Avenue Capital  Advisers who joined the group at the end of the financial year.  The Plan B acquisition, announced after financial year end, is another clear strategic fit for IOOF. It boosts the number of aligned advisers, increases IOOF’s Funds Under  Administration and provides access to two of Australia’s high growth states,  WA and QLD. As at the date of this report,  IOOF is in the advanced stages of an off-market takeover offer for Plan B that requires it to achieve 90 per cent of shareholder acceptances to acquire the company.