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Insignia hit by $1.8bn outflows as Master Trust FUA dips amid market pressure
Insignia’s Master Trust business suffered a 1.9 per cent dip in FUA in the third quarter, amid total net outflows of $1.8 billion.
Funds under administration within Insignia’s Master Trust business stood at $129.8 billion as at 31 March, down $2.5 billion during the quarter, driven by negative market movement of $1.5 billion, net outflows of $628 million and pension payments of $311 million, the firm said in an ASX listing.
Overall, Insignia suffered net outflows of $1.8 billion for the quarter.
The firm noted that last quarter, $3.0 billion flowed into its cash strategies from an institutional client consolidating managers. However, this quarter, a large portion was redeemed due to the client’s rebalancing and asset allocation needs, contributing to $1.8 billion in net outflows from institutional direct capabilities.
Insignia’s funds under management and administration (FUMA) decreased by $5.0 billion to $321.8 billion as at 31 March.
“We continued to make progress on our strategic initiatives during the quarter and have delivered another quarter of promising net flows in strategically important channels,” CEO Scott Hartley said.
“FUMA declined to $321.8 billion during a quarter of challenging investment markets, but pleasingly flows performance remained solid across several strategically important channels, including Expand Wrap, Workplace and retail asset management”.
Hartley applauded Insignia’s Master Trust business which continued its “historically strong profile of net inflows”.
Master Trust FUA as at 31 March was $129.8 billion, down $2.5 billion during the quarter, driven by negative market movement of $1.5 billion, net outflows of $628 million and pension payments of $311 million.
Workplace continued to attract positive flows, with net inflows of $133 million during the quarter. The direct channel also attracted positive net inflows of $60 million for the quarter.
Insignia said net outflows in the advised channel continued to moderate, with net outflows of $348 million materially lower than other quarters in FY2024–25.
In Asset Management, FUM decreased by $1.2 billion to $94.2 billion, driven by $1.5 billion in net outflows, partially offset by positive market movement of $346 million.
In Multi-Asset, net inflows of $325 million were primarily driven by continued adviser take-up of MLC’s managed accounts offering with $177 million in net inflows for the quarter.
Insignia’s Wrap FUA also suffered a decrease of 1.4 per cent to $97.7 billion driven by negative market movement of $1.2 billion and pension payments of $608 million.
On the flipside, the MLC Expand Advised suite of products continued to maintain strong post-migration flows momentum, with $498 million in net inflows for the quarter, which represented the fourth straight quarter of positive flows following the MLC Wrap migration.
Last week, Insignia provided an update on the exclusivity agreements entered into with both Bain Capital and CC Capital, revealing that both bidders were granted an extra four weeks to finalise deal terms.
“Following requests from both bidders, the exclusivity period in the exclusivity deed agreed with each bidder will be extended by an additional four weeks, on the same terms as the original deed,” Insignia said in an ASX filing.
“The extension is to allow the bidders to finalise debt funding and associated due diligence, and finalisation of scheme implementation deed terms.”
Touching on the progress of these agreements in the ASX listing, Hartley said: “We remain focused on ensuring the best outcome for shareholders from this process, while also continuing to deliver our strategic priorities to build the foundation for resilient and sustainable growth.
“We continue to focus on delivering our remaining FY25 initiatives, including accelerated cost optimisation and the Master Trust transition to SS&C and continuing to execute on our business plan.”
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