S&P/ASX 200 Index (ASX: XJO) financial stock Insignia Financial Ltd (ASX: IFL) is charging higher today.
Insignia shares closed yesterday trading for $3.56. In late morning trade on Wednesday, shares are changing hands for $3.67 apiece, up 3.1%.
For some context, the ASX 200 is up 1.5% at this same time.
With today's boost, Insignia shares are up an impressive 52.5% since this time last year.
Among other tailwinds, the ASX 200 financial stock has received a big lift from not one, not two, but three separate takeover offers this year. Insignia's suitors are Bain Capital Private Equity and CC Capital Partners.
With Bain Capital and CC Capital Partners having recently upped their offers to $5.00 cash per Insignia share (less any dividends that may yet be paid), the board determined in early March to "further progress their respective proposals".
As for what's lifting the Insignia share price today, those tailwinds look to be coming from the company's third-quarter update for the three months to 31 March.
Here's what we know.
Investors are bidding up the ASX 200 financial stock despite Insignia reporting a pullback in its Funds Under Management and Administration (FUMA).
For the three months, FUMA decreased by $5.0 billion, or 1.5%, to $321.8 billion as at 31 March.
"FUMA declined to $321.8 billion during a quarter of challenging investment markets," Insignia Financial CEO Scott Hartley said. "But pleasingly flows performance remained solid across several strategically important channels including Expand Wrap, Workplace, and retail Asset Management."
Total net outflows for the quarter came in at $1.8 billion. Insignia said this was driven by institutional outflows within low-margin Direct Asset Management capabilities due to client rebalancing.
On the growth front, the ASX 200 financial stock reported "solid momentum" with its MLC Expand, with $498 million in net inflows over the three months.
Commenting on that strong performance, Hartley said:
We are delivering on the commitment that we made to invest in and refresh the MLC brand, with a new national advertising campaign launching in early April 2025.
The campaign showcases MLC's commitment to helping Australians feel confident and in control of their finances, by highlighting our free-for-everyone MLC Money View tool.
Hartley added:
In February 2025, we signed a Master Services Agreement with SS&C to simplify and transform the Master Trust business and deliver an improved customer experience and cost efficiencies.
This arrangement is a critical step in our 2030 strategy and to achieving our targeted net $200 million reduction in base opex by FY30. We are now preparing for the mid-2025 transition of in-scope functions and roles to SS&C.
As for the ongoing takeover proposals for the ASX 200 financial stock, Hartley said, "We remain focused on ensuring the best outcome for shareholders from this process, while also continuing to deliver our strategic priorities to build the foundation for resilient and sustainable growth."
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