Insignia’s FUMA down in 1Q23

Oksana Patron

28 October 2022

Insignia Financial has reported a drop of $5.3 billion (-1.8%) in the group’s funds under management and administration (FUMA) to $292.2 billion, due to unfavorable market movement of $4.7 billion.

Funds under administration (FUA) stood at $201.6 billion at the end of the quarter, with $136 million of positive net inflows offset by market decline of $3 billion and pension payments of $753 million, which led to an overall reduction of $3.6 billion.

At the same time, funds under management (FUM) stood at $90.7 billion, with positive net inflows of $394 million and internal transfers of $1.5 billion offset by institutional outflows of $1.9 billion and market decline of $1.7 billion, resulting in an overall reduction of $1.7 billion (-1.8%).

“The institutional outflows reflected rebalancing away from Antares Fixed Income, predominantly by MLC, as a result of ongoing investment market volatility, as well as outflows from JANA, in which Insignia Financial holds a 45% interest,” the firm said in the announcement to the Australian Securities Exchange (ASX).

Insignia also reported a departure of 30 advisers at the end of the September quarter, bringing the total number to 1,570 advisers.

The move was consistent with declines seen across the broader advice market and represented a reduction primarily from the self-employed channel, the firm said.

“Whilst the level of departures has moderated compared to recent quarters, these continued to be some movement in the self-employed channel with a number of practices opting out, primarily through selling their client books or transitioning to a self-licensed model,” it said.

During the quarter, Insignia also completed the separation of the P&I business from ANZ, including the transition of the systems and people supporting the P&I business to the Insignia Financial environment and the exit from all transitional services provided by ANZ.

“The separation from ANZ, which was achieved on-schedule and to plan, with minimal disruption to clients, marks another important milestone in the integration of our acquired businesses and realization of synergies, and demonstrations our capability to deliver on major transformation initiatives,” Insignia’s chief executive, Renato Mota, said.