Insignia managed account FUM hits $10bn
Managed account solutions at Insignia Financial have hit $10 billion in funds under management as it adds 11 model portfolios to Expand.
The firm said it has added 11 new separately managed account (SMA) model portfolios to its Expand Extra wrap platform from Betashares and Drummond Capital Partners.
These will complement existing offerings from MLC Asset Management, Antares, Ausbil, BlackRock, DNR Capital, Elston, JBWere, Lonsec, Pendal, Perennial, Zenith and Zurich.
Insignia, which owns both MLC and Expand, said its growth in managed accounts was bolstered by seeing net flows of $732 million into its SMAs and managed discretionary accounts (MDAs) in the September quarter.
Earlier this year, Insignia completed a large wrap migration which saw $38.6 billion and 94,000 client accounts migrated from the MLC platform over to Expand, following the separation from NAB.
In its full-year results for FY24, it said the migration had collectively saved $13 million in administration fees per annum, created an improved user experience and a simpler way of working.
But the migration caused disruption as platform outflows were $1.5 billion, with the majority ($1.3 billion) occurring in the second half of the year, much from the advised channel.
MLC Expand chief executive, Liz McCarthy, said: “With increasing adviser demand for SMAs, we’re pleased to be adding another two leading investment managers and two bespoke licensee solutions to Expand’s existing SMA offering, giving clients greater access to more efficient, flexible and high-quality investment solutions.
“Since introducing SMAs to the platform earlier this year, Expand now has a more diverse investment offering to meet licensee, adviser and client needs.
“Our continued commitment to the growth, innovation and development of the Expand platform will support licensees and advisers to access simpler, faster and more intuitive investment solutions, helping them to achieve better outcomes for their clients.”
In July, Expand doubled its SMA menu addressing the growing demand from advisers to access a wider range of SMAs.
The firm said the decision had been made as SMAs were being continually sought by financial advisers to enhance their advice offering and achieve better client outcomes. Among the reasons for this are the technological developments, competitive pricing, and ability to save on brokerage fees offered by SMAs.
AUTHOR
Laura Dew
Recommended for you
The strategic partnership with Oaktree Capital and AZ NGA is likely to pave the way for overseas players looking to enter the Australian financial advice market, according to experts.
ASIC has cancelled a Sydney AFSL for failing to pay a $64,000 AFCA determination related to inappropriate advice, which then had to be paid by the CSLR.
Increasing revenue per client is a strategic priority for over half of financial advice businesses, a new report has found, with documented processes being a key way to achieving this.
The education provider has encouraged all financial advisers to avoid a “last-minute scramble” in meeting education requirements prior to the 31 December 2025 deadline.
