Master Trust clouds strong Insignia half

Mike Taylor

Managing Editor and Publisher

20 February 2026

What do Insignia Financial and AMP Limited still have in common? The challenge of getting their superannuation master trust businesses comfortably back in the black.

While a few weeks ago AMP chief executive, Alexis George acknowledge the work in progress status of her firm’s master trust business, Insignia Financial chief executive, Scott Hartley yesterday acknowledge the challenge presented by his company’s master trust business.

“In the Master Trust business, advised and personal channel outflows remain challenging,” he said. “We are progressing targeted initiatives to enhance AI-enable member engagement and adviser experience, supported by our partnership with SS&C which remains on track to deliver the MasterKey platform transformation later this calendar year”.

The dimensions of the Master Trust business challenge were reflected in the raw numbers with net revenue down 0.7% to $370.3 million, while operating expenses were down 6.9% to $222.8 million while net flows were down 7.1%.

The company’s commentary said net revenue in the Master Trust business decreased due to the impact of margin decline driven by pricing impacts, partially offset by the impact of higher average Funds Under Administration from market growth.

“Net flows declined by $0.1 billion from PCP as net outflows continued in the Advised and Personal channels, which continue to face challenges, partially offset by net inflows attracted by the Workplace and Direct channels,” it said.

The challenges of Master Trust business clouded an otherwise broadly positive half-year result for Insignia which marched strongly back into positive territory with a net profit after tax of $79 million.

It said this was on the back of a 1.8% increase in net revenue driven by higher average Funds Under Management and Administration, partially offset by margin impacts, including reductions to MasterKey and Plum.

Insignia’s decision to substantially rationalise its financial advice exposure via the creation of Rhombus Advisory in 2024 continued to pay dividends for the company with the remaining advice business delivering net revenue growth and “an improved cost-to-income ratio, driven by higher adviser productivity, new client growth and a focus on higher value clients”.

The company said revenue per adviser increased by 15% on the prior corresponding period.