In a quarterly business update on Thursday, Insignia Financial has confirmed that a number of milestones have been achieved in its separation from NAB, including the successful transition of general ladders and unit pricing platforms.
The firm expects that, in November, MasterKey and Plum registries – containing more than 700,00 member accounts – will be transitioned from the bank to Insignia Financial, alongside the associated MLC digital ecosystem.
Moreover, in the three months to 30 September 2024, the company’s funds under management and administration (FUMA) rose by $8.3 billion or 2.7 per cent, to $319.6 billion.
“The strategic initiatives delivered in FY24 and 1Q25 have provided a strong foundation for growth, which we will continue to build on throughout FY25,” said Scott Hartley, Insignia chief executive.
“FUMA grew to $319.6 billion during the quarter supported by strong market growth and provides the opportunity to drive efficiencies and economies of scale.”
Insignia experienced total net outflows of $1 billion over the quarter driven largely by institutional outflows within low-margin direct asset management capabilities due to client rebalancing.
In comparison, it saw total net inflows of $189 million in the previous quarter due to improved advised platform flows following the successful migration of MLC Wrap to Expand at the time.
Insignia’s funds under administration (FUA) grew by 3.1 per cent to $228.8 billion over the September quarter, on the back of positive market movements of $8.3 billion, partially offset by pension payments of $970 million and net outflows of $537 million.
Funds under management (FUM) added 1.6 per cent to rise to $90.8 billion, underpinned by market movements of $2 billion but partially offset by $504 million in net outflows.
The firm’s adviser numbers remained unchanged over the three-month period with 200 advisers across its Shadforth and Bridges licensees.
On 1 July 2024, Rhombus Advisory successfully separated from Insignia which included the RI Advice and Consultum licensees, enabling Insignia to focus on the growth of its remaining two licensees.
“Due to the stability in adviser numbers in these businesses, advice metrics will no longer be reported on a quarterly basis,” Insignia said.
Looking at its Wrap FUA, this increased by 3.7 per cent to $98 billion in the first quarter of FY2024–25. MLC Expand experienced “solid momentum” post-migration, the ASX statement said, with underlying net inflows of $522 million for the quarter.
Hartley continued: “It is pleasing to see stabilisation in Wrap flows following the successful migration of MLC Wrap to Expand earlier this calendar year. We continue to enhance our Expand platform, which is the most contemporary platform technology in the market, and grow the number of advisers engaging with the platform.”
Earlier this month, Insignia announced it had passed $10 billion in FUM on its managed account solutions.
Announcing its FY23–24 results in August, Insignia reported a statutory net loss after tax of $185 million, but an underlying net profit after tax of $217 million. The loss was attributed to increased remediation costs and costs related to the transformation and separation of the business.
