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Insignia Financial loses more advisers

Insignia Financial has reported a reduction of 82 financial advisers in its network for the June quarter.

Since the last quarter, Insignia reported 34 employed and 45 self-employed advisers had left bringing its current total to 1,600.

It explained the drop was partly due to the integration of the MLC Advice and Bridges businesses and said that as of June 30 there were 1600 active financial advisers in its network.

"As flagged in the last update, the MLC Advice and Bridges businesses were brought together during the quarter under one brand and culture, resulting in a reduction of 30 adviser roles and creating improved efficiencies," the report said.

"There continued to be some shifts in the self-employed channel as Insignia Financial progresses the sustainability of the Advice business, with a number of practices opting to sell their client books or transition to a self-licensed model."

It further reported that funds under management also dropped 4.7% in the June quarter.

Its FUM currently sits at $92.3 billion, down from $96.9 billion at the end of the March quarter.

It said losses were caused by a decline in the market of $3.8 billion, resulting in an overall reduction of $4.6 billion.

Commenting on the quarter, Insignia Financial chief executive Renato Mota said the firm has delivered an improvement in platform flows, while facing into increased investment market volatility.

"Underpinning this growth momentum are client wins in workplace super and positive engagement within the advisory channel. Flows into MLC's retail asset management offering were once again positive, offset by outflows from the institutional channel which are typically lumpier in nature. The integration of MLC Advice into Bridges provides a strong foundation for profitable growth in Advice and provides Insignia Financial with two flagship market positions in Shadforth and Bridges," he said.

Its funds under administration also saw a decline; as of June 30 it reported $205.2 billion, a decrease of $15.1 billion (-6.9%) for the quarter.

"The decline in FUA was driven by a market decline of $14.9 billion (-6.8%), combined with pension payments of $0.8 billion partly offset by net inflows of $0.6 billion, with the Workplace and Advised channels both recording positive inflows for the quarter," results state.

Read more: Insignia FinancialBridgesMLC AdviceRenato MotaShadforth