Insignia points to adviser stability at Shadforth and Bridges

Insignia Financial has said it will be ceasing its quarterly reporting of financial adviser numbers, following the separation of Rhombus Advisory.

In a quarterly update released to the Australian Securities Exchange (ASX), Insignia noted that it had retained 200 ”Professional Services” advisers across Shadforth and Bridges – a number that had remained unchanged over the quarter.

It said that due to the stability of the adviser numbers in the two businesses, Advice metrics would no longer be reported on a quarterly basis.

Noting the successful separation of Rhombus Advisory on 1 July, it said that Insignia had retained a 37% equity stake with the separation allowing increased focus on the growth, improved efficiency and profitability of the wholly-owned Shadforth and Bridges Advice businesses.

More generally, Insignia’s update to the ASX revealed funds under management and administration (FUMA) increased by $8.3 billion or 2.7% during the quarter to stand at $319.6 billion.

It said total net outflows for the quarter were $1 billion, driven largely by institutional outflows within low-margin Direct Asset Management capabilities due to client rebalancing.

Commenting on the update, Insignia chief executive, Scott Hartley noted that FUMA had grown during the quarter supported by strong market growth and this had provided the opportunity to drive efficiencies and economies of scale.