In a quarterly business update on Thursday, Insignia Financial confirmed that a number of milestones have been achieved in its separation from NAB, including the successful transition of general scales and unit pricing platforms.
The company expects that in November, the MasterKey and Plum ledgers – containing more than 700,000 member accounts – will be transferred from the bank to Insignia Financial, alongside the associated MLC digital ecosystem.
Additionally, in the three months to September 30, 2024, the company’s funds under management and administration (FUMA) increased by $8.3 billion, or 2.7 percent, to $319.6 billion. dollars.
“The strategic initiatives implemented during FY24 and 1Q25 have provided a strong foundation for growth, which we will continue to build upon throughout FY25,” said Scott Hartley, CEO of Insignia.
“FUMA reached $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 during the quarter, primarily driven 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 feeds following MLC Wrap’s successful migration to Expand at the time.
Insignia’s funds under administration (FUA) increased 3.1 percent to $228.8 billion in the September quarter, driven by 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) increased 1.6 percent to $90.8 billion, supported 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 among its Shadforth and Bridges licensees.
On July 1, 2024, Rhombus Advisory successfully separated from Insignia which included licensees RI Advice and Consultum, allowing Insignia to focus on the growth of its two remaining licensees.
“Due to the stability of the number of advisors at these firms, advisory metrics will no longer be published on a quarterly basis,” Insignia said.
As for its FUA Wrap, this amount increased by 3.7 percent to $98 billion in the first quarter of the 2024-25 financial year. MLC Expand saw “robust momentum” post-migration, the ASX statement said, with underlying net inflows of $522 million for the quarter.
Hartley continued: “It is pleasing to see a stabilization of Wrap flows following the successful migration of MLC Wrap to Expand earlier this calendar year. We continue to improve our Expand platform, which is the most contemporary platform technology on the market, and increase the number of advisors who engage with the platform.
Earlier this month, Insignia announced it had surpassed $10 billion in FUM across its managed account solutions.
