Australian financial company Insignia Financial [ASX:IFL] posted its 3Q23 Quarterly Business Update earlier on Wednesday morning and said Funds Under Management and Administration (FUMA) increased by $6.2 billion.
Total net inflows for the quarter also went up, reaching $660 million, bringing total net inflows for FY23 to-date to $604 million.
Renato Mota, Insignia Financial’s CEO, said FUMA growth in the quarter was a reflection of business strategy and stabilisation of investment markets.
The IFL share price inched up more than 1% by the early afternoon, trading for around $3.10 each.
Looking at the shorter term, the group is doing well, having driven up 11.5% in value over the last month.
However, in the past year it’s fallen nearly 10%, and its down in the S&P 200 by almost 12%:
Source: tradingview.com
The financial run-down for Insignia’s third quarter
The financial services group today decided to provide the highlights for its own financial business, reporting progress for the third quarter of fiscal 2023.
The group reported FUMA had increased by $6.2 billion, rising 2.2%, to $291.3 billion as at 31 March 2023.
Funds Under Administration (FUA) came in at $205.5 billion thanks to what the group described as a ‘positive market movement’, partly offset by pension payments and net outflows, but it still managed an overall increase of $4.2 billion.
Funds Under Management (FUM) totalled $85.8 billion, off similar metrics, benefits and impacts as the above, resulting in an overall increase of $2 billion.
Total net inflows for the quarter came to a total of $660 million, upping total net inflows for the financial year to $604 million, calculated on a continuing basis.
Platform net outflows of $453 million during the quarter were said to reflect challenging conditions in the Advised channel, partially offset by continued strong net inflows into the Workplace channel.
Insignia attracted $1.1 billion for Asset Management net inflows, driven by $902 million of inflows from its Direct channel and $211 million inflows into the group’s multi-asset portfolio.
Insignia said it managed to maintain active advice services with 1,483 financial advisors by the end of the quarter. The group did experience declines in advisor numbers which were said to have been due to changes experienced across the industry over the past several quarters:
Source: IFL
Commenting on the quarter, Mr Mota, said:
‘Growth in FUMA during the quarter reflects execution of our business strategy and stabilisation of investment markets.
‘Our Workplace offering is continuing to attract strong inflows from previous business wins, while Asset Management has attracted strong institutional inflows.
‘We continue to invest in, and enhance our proprietary Evolve platform ahead of the next phase of simplification, while enhancements to the ANZ Smart Choice Super product suite demonstrate our focus on process efficiencies and environmental responsibility.’
Insignia expects to provide further details before full-year FY23 results.
Mr Mota concluded with:
‘As we look to the remainder of 2023, our experience and track record in disciplined execution of strategic initiatives and opportunities gives us the confidence that we will continue to deliver benefits to members as well as shareholders in the face of uncertain investment market conditions.’
Drillers primed for financial success
Speaking of financial increases, some Australian drillers are looking at making massive bull market-like gains in the face of recession, interest rates and wider market sentiment.
To put it bluntly, drillers are booming.
More booms are marked to happen for every single metal on the periodic table.
Aussie mining is at its best right now, but if so many of them topped 2022, can they really do it again in 2023?
Our experts definitely seem to think so. But how do you tell which ones?
You may need a little help from our commodities expert James Cooper.
James has spent time out in the field and brings inside-industry knowledge to you here at Fat Tail Investment Research.
Let’s start with six ASX mining stocks that are heading to top the charts.
Regards,
Mahlia Stewart
For The Daily Reckoning
