Insignia targets July for adviser equity strategy

Insignia Financial is pointing towards implementing its equity participation model for financial advisers by July this year under the auspices of the separate company structure it created last year.

That company has now been named Rhombus Advisory Pty Ltd and Insignia said that advisers had continued to “demonstrate positive sentiment towards the partnership strategy.

“The equity participation approach was presented to advisers and focus is now shifting towards implementation by July 2024,” the company told the Australian Securities Exchange.

Insignia confirmed in a quarterly update to the ASX that there were 1,199 advisers in the Insignia network as at 31 December comprising 211 in the employed channel and 988 self-employed and self-licensed advisers.

It said the reduction of 186 advisers was primarily from within the self-employed and self-licensed channel as a result of the result of the sale of Millennium3 to WT Financial.

IT said there had also been a reduction of 27 authorised representatives from the self-licensed channel as a result of a larger practice being sold and some other smaller businesses exiting.

Insignia reported a 2.5% decline in funds under management (FUM) to $85.5 billion driven by $1.7 billion in net outflows which it attributed to existing institutional clients rebalancing and modifying their underlying asset allocation with $1.2 billion in net outflows within Antares Fixed Income alone.

It said MLC’s contemporary Managed Accounts offering continued to show strong momentum and uptake amongst advisers with $203 million in net inflows in the quarter and was on track to deliver over $800 million in net inflow by the end of FY24.