In a statement on Thursday, Insignia said its funds under management and administration (FUMA) increased by $7.5 billion to $300.6 billion as at 31 December.
The firm confirmed outflows of $511 million, largely reflecting institutional asset management outflows and strategic execution of platform strategy.
Insignia’s overall FUMA was made up of funds under administration (FUA) of $215.1 billion, up 4.7 per cent on the quarter, and $85.5 billion in funds under management (FUM) which decreased by $2.2 billion.
The FUA increase was driven by market movement of $9.4 billion (4.6 per cent) and net inflows of $1.1 billion, partly offset by pension payments of $872 million, while the FUM setback was a result of $1.7 billion in net outflows and a $1.0 billion decrease related to the divestment of IOOF Limited to Australian Unity.
Exiting chief executive officer Renato Mota said: “We have made a strong start to the financial year and solid progress on the FY24–26 strategic initiatives announced in July 2023.”
Last October, Mr Mota announced his exit from the company in which he spent 20 years. In a statement issued to the ASX at the time, Insignia said the decision to see him depart was made by “mutual agreement”.
Mr Mota originally joined Insignia in 2003 and has held a range of positions at the firm including general manager - investor solutions, general manager - distribution, and group general manager - wealth management.
He was named acting CEO in December 2018 after the Australian Prudential Regulation Authority (APRA) commenced disqualification proceedings against the group’s executives which were later dismissed. Mr Mota was then officially appointed CEO in June 2019.
During Mr Mota’s tenure as CEO, Insignia completed its acquisition of ANZ’s OnePath pensions and investments business and NAB’s MLC wealth management business.
Back in October, Insignia said it had commenced the search for a new CEO, however, information since then has been lacking, with Insignia glossing over the departure in its most recent quarterly update.
What Insignia did acknowledge, however, is the significant adviser exodus it experienced in the last three months of the 2023 calendar year. Namely, outflows reached 186, reducing its overall adviser count from 1,385 to 1,199.
The financial services firm explained the losses as a result of the Millennium3 business sale to WT Financial which was finalised in December.
Maja Garaca Djurdjevic
Maja's career in journalism spans well over a decade across finance, business and politics. Now an experienced editor and reporter across all elements of the financial services sector, prior to joining Momentum Media, Maja reported for several established news outlets in Southeast Europe, scrutinising key processes in post-conflict societies.
