The advice licensees seeing strong share price growth

13 December 2023
| By Laura Dew |
image
image
expand image

Money Management examines the share price growth of advice licensees as the year-end approaches.

As of 12 December, four listed licensees have reported gains while another four have seen losses during the year. As a benchmark, the ASX 200 has risen by 3.7 per cent over the same period.

The worst performance was seen by Insignia, where chief executive Renato Mota will step down in February 2024 after five years, which lost 33 per cent in a gradual decline throughout the year.

This was followed by AMP which lost 26 per cent, much of this in February when the firm announced net profit after tax in its advice division declined by 34 per cent from $280 million to $184 million.

Speaking to Money Management, Colin Williams, founder of Wealth Data, said: “AMP and Insignia have struggled for years. It is hard to see a way back for them, and it is difficult to turn the ship around.

“Looking back to when Insignia announced the MLC deal, they were going to be bigger and brighter but instead their business has shrunk dramatically in terms of numbers of advisers.”

This week, Insignia lost the title of Australia’s largest licensee after the sale of its Millennium3 division to WT Financial saw 140 advisers move over. Instead, AMP now holds the title with 872 advisers.

However, it has just begun a three-year transformation process, which includes a new Advice Services Co (ASC) division, so that could have an impact in the long term.

Looking at the licensees which saw strong performance, Diverger gained 29 per cent and Centrepoint Alliance gained 35 per cent. 

Diverger was helped by the bid from Count, which is set to acquire the firm in February 2024.

The other licensees which saw gains were WT Financial which saw a smaller share price rise of 11 per cent, and Count which gained 1.4 per cent.

Rounding out the major licensees, Sequoia lost 3.5 per cent and Fiducian lost 14.5 per cent.

Firm Share price growth
Centrepoint Alliance 35%
Diverger 29%
WT Financial 11%
Count 1.4%
Sequoia -3.5%
Fiducian -14%
AMP -26%
Insignia  -33%

Source: ASX, 12 December 2023
 

Read more about:

AUTHOR

Add new comment

The content of this field is kept private and will not be shown publicly.
 

Recommended for you

 

MARKET INSIGHTS

sub-bg sidebar subscription

Never miss the latest news and developments in wealth management industry

Squeaky'21

My view is that after 2026 there will be quite a bit less than 10,000 'advisers' (investment advisers) and less than 100...

1 week 1 day ago
Jason Warlond

Dugald makes a great point that not everyone's definition of green is the same and gives a good example. Funds have bee...

1 week 1 day ago
Jasmin Jakupovic

How did they get the AFSL in the first place? Given the green light by ASIC. This is terrible example of ASIC's incompet...

1 week 2 days ago

AustralianSuper and Australian Retirement Trust have posted the financial results for the 2022–23 financial year for their combined 5.3 million members....

9 months 2 weeks ago

A $34 billion fund has come out on top with a 13.3 per cent return in the last 12 months, beating out mega funds like Australian Retirement Trust and Aware Super. ...

9 months ago

The verdict in the class action case against AMP Financial Planning has been delivered in the Federal Court by Justice Moshinsky....

9 months 2 weeks ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND