Insignia FUM grows by $11bn, completes platform migration

Insignia Financial saw funds under management increase by $11.7 billion (up 3.9%) to $312.3 billion as at March 31, and has completed the migration of MLC Wrap to Expand.

Total net outflows for the quarter were $1.7 billion, largely reflecting the transitory impact of execution of wrap platform consolidation, it said.

Insignia Financial chief executive Scott Hartley said it had been pleasing to see continued progress against the FY24-26 strategic initiatives Insignia announced in July 2023.

"Strong growth in FUMA over the quarter has been supported by positive investment markets and reflects the benefits of scale, while our flagship Expand platform is achieving consistent net inflows," Hartley said.

"The successful, highly complex wrap migration demonstrates Insignia Financial's strong track record of execution and ability to deliver significant projects. It is an important and significant milestone as we continue to simplify and optimise the business."

Hartley said the Expand platform would deliver an enhanced solution to migrated clients and their advisers and would help to reduce costs.

"We expect to see an improvement in net inflows over the longer term as we work through this transitionary period," he said.

The migration was the largest single wrap migration in the Australian platform industry. Completed at the end of March, the migration saw 94,000 client accounts move from MLC Wrap, MLC Navigator and associated offers to Expand.

Insignia chief distribution officer and head of superannuation Mark Oliver said the complex migration has delivered a simpler, faster, and easier to use Expand platform to more advisers and clients.

"Expand is a key part of our offer to advisers and their clients. Our established technology and in-house capability is contemporary, intuitive, and simple to use, enabling business efficiency and better outcomes for clients," he said.

"This migration is a significant simplification milestone for Insignia Financial, following the acquisition of MLC in 2021, and supports our strategy and delivers scale benefits, with 98% of migrated clients benefiting from fee reductions in Expand."