MLC Expand continues to shine while institutional rebalancing weighs on total FUMA
Insignia Financial (ASX: IFL) has posted a mixed Q3 FY25 update, showing resilience in key strategic areas despite broader market pressures and institutional outflows. Total Funds Under Management and Administration (FUMA) dipped 1.5% to $321.8 billion for the quarter, largely driven by client rebalancing within the lower-margin institutional asset management channel.
CEO Scott Hartley struck an optimistic tone, highlighting positive net flows across core platforms, especially MLC Expand, which notched up $498 million in net inflows—its fourth consecutive quarter of positive momentum. Wrap flows overall held up well, with net inflows of $393 million helping to partially offset market-driven declines and pension payments.
The Master Trust (Superannuation) platform saw FUA fall 1.9% to $129.8 billion. Still, the Workplace and Direct channels showed strength, with $133 million and $60 million in net inflows respectively. The advised channel continued to stabilise, with net outflows of $348 million, a marked improvement compared to previous quarters.
In Asset Management, FUM declined by $1.2 billion to $94.2 billion. The key drag came from $1.5 billion in net outflows, mainly tied to a large institutional client reversing recent inflows as part of a broader asset reallocation. However, Multi-Asset capabilities remained a bright spot, delivering $325 million in net inflows, buoyed by strong uptake of managed accounts and retail multi-asset funds.
On the transformation front, Insignia remains on track with its major structural move: the transition of its Master Trust business to SS&C, which is expected to complete mid-2025. The deal is a cornerstone of Insignia’s 2030 strategy and part of its push to cut base operating costs by $200 million by FY30. Meanwhile, the group is also progressing with its new national MLC brand campaign, aimed at building consumer confidence and boosting visibility.
There’s also a corporate backdrop worth watching—Insignia recently extended exclusivity talks with Bain Capital and CC Capital over their non-binding acquisition proposals. But for now, the focus stays squarely on executing its strategy and delivering the rest of its FY25 initiatives, including cost optimisation and continued flow growth.
