Insignia shares tumble 11% as FUM shrinks

The news: Shares in financial services player Insignia have fallen 11% after the group's funds under management shrunk by $6.4 billion.

The numbers: Insignia posted an annual statutory net profit after tax of $51 million, up 39% on FY22. Underlying NPAT sank 15% over the year as average funds under management and administration fell by $2.5 billion to $295 billion, including a $6.4 billion drop in FUM, after Insignia sold its stakes in AET and Jana. Insignia declared a 9.3 cent final dividend. IFL shares were down 11% to $2.59 at 2:30pm AEST.

The context: Insignia, formerly known as IOOF Holdings, is in the third and final year of its integration and simplification of MLC, which it acquired in 2021. In order to bring its financial advice business back into profitability, it is spinning off its self-employed advisors into a standalone business while it focuses on its digital advice offering.