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Highlights:

  • IFL funds under management and administration rose AUD 8.5 billion in 4QFY25
  • Insignia Financial ended June with total FUMA of AUD 330.3 billion across all business units
  • Net flows expected to turn negative in future quarters despite end-period uplift

Insignia Financial Ltd (ASX:IFL) released its quarterly business update for the three months ended 30 June 2025, reporting an increase in funds under management and administration (FUMA) by AUD 8.5 billion during the period. The total FUMA as at the end of June stood at AUD 330.3 billion. However, despite the headline growth, the company cautioned that net flows are expected to turn negative in coming quarters. The AUD 8.5 billion quarterly uplift in FUMA was largely driven by positive market performance. The company noted that although end-period FUMA increased, the group anticipates structural outflows to resume in future quarters. This reflects underlying pressure across its investment, superannuation, and platform businesses amid continued shifts in customer and adviser behaviour.

Insignia Financial is one of Australia’s largest diversified wealth management groups. The company offers investment management, superannuation, financial advice, and retirement income solutions to individuals and institutions. As of FY25, it serves over 2 million customers and has approximately AUD 330 billion in assets under management, advice, and administration. The company was formerly known as IOOF Holdings Ltd and rebranded following its acquisition of MLC’s wealth business in 2021.

The group’s FUMA is spread across three core segments:

  • Advice and Asset Management: Includes funds managed under Insignia's own investment teams and advice channels.
  • Platforms: Covers its proprietary wrap platforms used by advisers and clients for investing.
  • Superannuation: Includes corporate, industry, and retail superannuation accounts under administration.

All three segments contributed to the quarter-end growth, though net flow momentum remained mixed. Platform flows showed signs of stabilisation but continue to face adviser attrition and fee compression pressures. The superannuation segment experienced net outflows despite positive investment returns.

Looking ahead, Insignia flagged a more cautious view on near-term flows. The company expects net outflows to resume in subsequent quarters, attributing this to continued member exits, reduced new money from advisers, and structural changes in the financial advice industry. These include adviser departures, platform switching, and lower institutional mandates. The company said it remains focused on simplifying its business operations, delivering on integration initiatives, and enhancing platform and service capability. However, no specific guidance was provided in terms of expected FUMA levels or earnings outlook.