Insignia managed accounts surpass $6bn FUM

Insignia Financial has announced that its managed accounts solutions have exceeded $6 billion in funds under management (FUM).

In a statement on Tuesday, the firm noted that its suite of managed accounts had also grown by more than 42 per cent over the year.

According to Insignia, this robust growth continued over recent months, with September 2023 experiencing record monthly net inflows of $248 million into Insignia’s managed discretionary accounts (MAD) and separately managed accounts (SMA).

Chief distribution officer Mark Oliver said he was pleased to see the uptake in its managed account solutions as advisers look for ways to streamline operations and generate improved outcomes for clients.

“Their continued growth demonstrates the important role managed accounts play for financial advisers and their clients,” Mr Oliver said.

Insignia also pointed to recent findings from Investment Trends, which highlighted that more than half (56 per cent) of financial advisers are utilising managed accounts in their client portfolios in 2023, an increase from 26 per cent in 2017.

This change was attributed to more advisers now recognising that they can leverage managed accounts to help generate more consistent outcomes for clients in times of volatility, Insignia said.

According to Mr Oliver, the firm is well positioned to meet this increased demand.

“Advisers are increasingly adopting our wrap platform solutions to provide more choice and value to clients,” he explained.

“Along with increased administration efficiencies and portfolio risk mitigation, the broad range of investment options offered in our managed account solutions allow advisers to design unique portfolios tailored to clients’ individual needs.”

He confirmed that Insignia will continue to grow its offering over the next year in response to increasing demand from licensees to meet varying client needs.

The news of Insignia’s recent milestone comes after the firm, last week, revealed that chief executive officer Renato Mota would step down from the role at the end of February 2024.

Insignia confirmed the move, which was made by “mutual agreement”, in an ASX announcement on Friday, in which it added that Mr Mota has been a “key organisational leader” throughout his 20 years at the firm, including the past five years as chief executive officer.

“Over his time with the group, Renato has been instrumental in transforming IOOF and ultimately Insignia Financial into one of Australia’s leading wealth management organisations,” chairman Allan Griffiths said on Friday.

He added that Insignia has begun searching for a new CEO to build on the foundations established by Mr Mota.