Insignia Financial Ltd

Thank you. Good morning, everyone. Welcome to Insignia Financial's FY25 results for the year ended 30 June 2025. I'm Andrew Ellick, General Manager of Capital Markets. I'd like to begin by acknowledging the traditional custodians of the lands on which we meet today. I pay our respects to their elders past and present. Presenting today's results will be Scott Hartley, Chief Executive Officer and David Chalmers, Chief Financial Officer. As mentioned, there will be an opportunity to ask questions at the end of today's presentation. I'll now hand you over to Scott.

Thanks, Andrew. Good morning, and thanks all for joining today. I'm pleased to deliver our full year results for FY25, which saw strong growth in UNPAT, up 18%, and an improvement in NPAT by over 200 million, as we see the finalisation of separation and remediation. FUMA increased, sorry, our costs fell by 6%, driven by net reduction in operating costs of $60 million, as we pursue our vision to become Australia's leading and most efficient diversified wealth manager. FUMA increased to $323 billion, supported by strong net flow performance of $1.6 billion, a $5 billion turnaround from FY24. Our cost to income ratio continues to improve, from 73% last year to 68%, which is a significant reduction, but of course we still have more work to do. So when I joined at the beginning of last year, I committed to the continued delivery of our FY24-26 strategic initiatives, as these were critical for our future. I'm pleased to report the early successful completion of these transformation and separation initiatives, which lay the foundation for our 2030 vision and strategy. Rhombus Advisory was launched on the 1st of July in 2024. This innovative model, this innovative partnership model enables us to maintain strong relationships with Rhombus high-quality self-employed advice businesses while allowing us to focus on the growth of our sales advice businesses. MLC RAP was successfully migrated to expand in late FY24 and bedded down during the first half of 25. We delivered 60 million in OPEX savings in FY25, a total of 84 million over two years, while completing NAB separation. There was no net increase in historical remediation provisions in FY25, and we remain on track to complete APRA license conditions. At the end of next year, Sorry, at the end of last year, we announced our vision to become Australia's leading and most efficient diversified wealth manager by 2030. With the early completion of our previous strategy in FY25, we've been able to build early momentum toward our 2030 vision. We've embedded our new operating model with four accountable business lines, refreshed the executive team and put the MLC brand back in market. In our advice business, we've unlocked future growth by investing in advisor efficiency, delivering a significant uplift in revenue per advisor and positioning cost to income ahead of FY28 targets. Our platform continues to scale with funds under administration now exceeding $100 billion. We've also launched MLC Retirement Boost, a new retirement income solution supported by a strategic partnership jointly with TAO and Challenger. This will bring significant benefits to our customers' retirement outcomes. We've advanced our master trust strategy with price reductions to the master key suite, completed the transition to SS&C, and confirmed a long-term direction supporting a simple business and improved customer experience. Our asset management business Our asset management business is continuing to gain momentum with new alternative funds launched for institutional and wholesale markets. And our $3.3 billion in managed accounts of FUM now spreads across 10 industry-wrapped platforms. Our advice business is performing strongly with new client growth and a focus on higher-value clients, boosting revenue from $70K to $850K per advisor. This growth is complemented by a more efficient cost-to-income ratio supported by $6 million in optimization benefits. We've earned industry-leading recognition with 25 Shadforth advisors featured in Barron's Top 150, And we're off to a strong start on our 2030 strategic agenda and advice, enhancing advisor efficiency, improving cost of income ahead of FY28 targets, and increasing the number of clients per advisor. Strategic investments in automation and AI are helping simplify the advice review process and expand advisor capacity. Our RAP business continues to perform strongly with FUA surpassing $100 billion and enjoying $2.1 billion in net flows to the MLC Expand platform in FY25. Despite margin impacts from the MLC RAP migration, we've improved cost to serve through $20 million in cost optimization benefits, while also supporting net revenue growth by higher average FUA. Advisor satisfaction has significantly improved with Expand Essential ranked as the number two platform in the recent Wealth Insights FY25 survey. Advisor engagement with both Expand Extra and Expand Essential has grown markedly with usage up over 50% for both platforms. And NPS has increased 25 points for the full wrap and 15 points for essential versus industry uplift of 11 points. Additionally, we're expanding investment options on the Xpand platform, simplifying our product suite and investing in AI to streamline advice processes and enhance advisor efficiency. In MasterTrust, we've completed key transformation milestones with the NAB separation a few months earlier than planned. and the One Path Custody Transition, which was successfully completed in May 2025. We realised $9 million in optimisation benefits, helping to lower the cost to serve. We also delivered net revenue growth, driven by higher average floor and supported by improved master trust flows, reflecting the positive impact of pricing changes. We've well progressed on our 2030 strategic agenda highlighted by the successful transition to the Master Trust Tech and Ops function to SS&C, and I'll touch more on this later in the presentation. In October 2024, we reduced fees in Master Key, which is beginning to show positive signs in retention. While there was no revenue impact in FY25, there will be margin implications in FY26. We're also maintaining strong momentum in our digital direct strategy that will be supported by a refreshed brand position launching in the first half of 26. In asset management, our multi-asset capability continues to perform strongly with 85% of outperforming benchmarks and the flagship MySuper growth option achieving top performance over five years. The asset management team earned multiple industry awards highlighting both performance and recognition. FY25 saw strong momentum with $1.9 billion in net flows into multi-asset retail managed funds and managed accounts, and new large institutional mandates in fixed income. In terms of key metrics, we saw improvement in cost to serve from 14 basis points to 11 basis points. We're accelerating progress on the strategic agenda with the launch of new alternative funds, including the MLC Reinsurance Investment Funds and private equity co-investment fund number four. And our SMA continues to enjoy strong flows, now with over 3.3 billion in FUM across 10 industry-wrapped platforms. As I mentioned earlier, in FY25, we launched the refresh of the MLC brand for the first time in more than five years. MLC is one of Australia's most recognisable financial services brands with prompted awareness of 68%. In FY25, we began revitalising the brand with a targeted campaign to recognise awareness and address declines in key metrics, positioning MLC as a resilient and strategic brand for the future. As a result of this campaign, MLC's brand responded well to relatively small investment. with key brand metrics improving notably reputation and consideration up three and two points respectively. These foundational activities built in FY25 have set the stage for full-scale brand relaunch in coming months. So you'd have to have been living under a rock not to know that we, have reached an agreement with CC Capital. We're following a seven-month process which began in December 2024. On the 22nd of July, we announced we have entered into a scheme implementation deed for CC Capital to acquire Signia Financial. The offer values equity in the company at approximately $3.3 billion, a 57% premium to the undisturbed share price on the 11th of December 2024. The board unanimously rents the scheme which remains subject to regulatory and shareholder approval. I'll now hand over to David Chalmers, Chief Financial Officer, to take you through our financial results and details.

Thanks, Scott, and good morning to everyone on the call. I'd like to commence the review of financial performance with a summary of our results for the period ended 30 June 2025, starting with net revenue of $1.405 billion, a 0.9% increase on FY24. It's worth noting that the FY24 comparison period includes revenue from several divested or deconsolidated advice services businesses, most notably Rhombus Advisory. Revenue in FY24 and a loss of $4.3 million in FY25, which represents a loss of degradation of Rhombus Advisory on the 1st of July this year. Looking at performance on an ongoing business basis, which excludes these divested and being consolidated businesses, FY25 revenue was 4.7% higher than FY24. Turning to costs, our total OPEX fell by 5.9% with net cost reduction of $60 million over FY24 in line with FY25 guidance. Early progress on our base operating cost reduction projects in 25 allowed us to be ahead of our cost out targets for the year And so we were able to invest $12 million for the early stages of the SS&C transition work, the timing and quantum of which were not known, therefore not included, at the time we gave the original guidance. We've tagged this spend as reinvestment OPEX to allow the monetization of OPEX that will be used from FY26 and going forward, as I'll cover shortly. From a profitability point of view, there was a significant uplift compared to FY24, with EBITDA up 18.9%, while underlying net profit after tax increased by 17.6% to $254.8 million. Unpaid adjustments for the period were $238.7 million. The notable adjusted items including expense transformation and separation costs of $167.3 million, legacy legal settlements of $41.3 million, and the impact of fair value adjustments to the subordinated loan notes of $51 million with the variable equity link component of those notes now confirmed and booked. These adjustments result in a statutory NPAT of 16.1 million for FY25 compared to an NPAT loss of 185.3 million in FY24. Focusing now on the drivers of the changes in profitability, I'll step through the bridge between FY24 and FY25 UNPAT. Firstly, as covered on the last slide, NetOpEx fell by a net $60 million as we continue the execution of our cost-out initiatives consistent with the 2030 vision and strategy. On the revenue side, our two advice businesses grew revenue by $10.6 million, a pleasing result driven by a lift in revenue per advisor and favourable growth in investment markets, helping to grow account balances. Turning to our three FUMA link segments, the strong investment markets, predominantly in the first half of FY25, and better than expected full year net flows, saw FUMA growth contribute increased revenue of $81.6 million, with FY25 average FUMA of $322.6 billion, being 7.1% higher than FY24. The divestment and deconsolidation of our advice services business, Rhombus Advisory, and the link sale of other smaller businesses were the main driver of the change in our corporate segment, which is where these legacy businesses were reported. Net margin contraction for the period was 23 million, with group net revenue margins of 43.7 basis points versus 44.7 basis points on an ongoing basis in FY24. During the period, margins declined modestly in master trust and asset management, with 15.9 million of the net $23 million revenue decline coming from our RAP business. And the main driver of this contraction was approximately $9 million full year impact of the pricing changes made for the migration of MLC RAP to expand, with FY25 representing a full year's impact and therefore no further margin erosion from this transition in FY26. Other factors impacting RAP margins were the impact of fee tiers and caps in a rising market, as well as changes in the mix of our RAP portfolio. Net interest and net non-cash together impacted UNPAD by $17.8 million, with a $12 million increase in net interest costs due to higher drawn average balances and increases in funding costs. Higher depreciation and amortization charges had a $5 million impact. And then finally, there was a 15.9% increase in tax expense. Moving on to the next slide, on slide 16. This shows the evolution of our cost base over the last few years with base operating expenses declining by $96 million between FY23 and FY25. As we set out last November at the Strategy Day, we see the opportunity to reduce these costs further through FY28 and FY30 with efficiencies driven by business simplification and improved operating efficiency. Another part of last year's Strategy Day presentation was the new way in which we will report our operating expenses, splitting them into two categories. base operating expenses, which represents the running costs of the business on a BAU basis, and reinvestment OPEX, which will cover investment made into our business into new capability or one-off incremental investments. Now, importantly, we have different expectations for the trajectory of the spin for each of these types of OPEX. We expect base OPEX to materially decline over time, and the opportunity we see, as we set out last November, is to lower base OPEX from around 880, 890 and FY26, to low to mid 800s in FY28, and then low to mid 700s in FY30. Across the same period, we expect the average spend of $60 to $80 million a year for reinvestment OPEX to effectively remain throughout that period. We report this breakdown of OPEX from FY26 onwards, with FY25 being a little bit of a hybrid year, because we'd established OPEX on a total basis, and so for simplicity, we've only reported one item as being in reinvestment OpEx for FY25, that being the early start of the SS&C-related spend, which was flagged at the first half results. For FY26, we expect total reinvestment OpEx of circa $80 million, the largest amount being for the next phase of the migration work with SS&C, which represents approximately 40% of the FY26 reinvestment spend. We continue to invest in simplification projects, which will generate future cost efficiencies, including investments in AI and data, uplifting our anti-money laundering and counterterrorism financing capability, custody simplification and rationalising our corporate structure, as well as continued enhancements on the Xpand platform. Slide 17 links to the last slide and illustrates the changes we'll bring to the reporting of below-the-line expenses from FY26, again consistent with the approach we outlined at last November's Strategy Day. Because significant items, cash items, such as transformation, separation, and remediation, have been recognized below the line, the difference between reported unpat and NPAT was almost $402 million in FY24 and $238.7 million in FY25. Moving forward from FY26 onwards, we expect to see $20 to $30 million of cash items adjusted, principally being some of the expected redundancy costs linked to cost-out work, and a further $50 to $70 million of non-cash items, which is principally the amortization of acquired intangibles, such as the customer records of historical acquisitions, including those made by IOOF, such as Shadforth, ANZ P&I, and MLC. We see the benefit of this new approach as being twofold. Firstly, that there'll be greater clarity on the cost required to run and invest in growth for Insignia. And secondly, we're bringing this approach in at a time when the expected spend on cash items below the line will be a fraction of what they previously have been, meaning that the gap between UNPAT and NPAT will significantly reduce. As a practical example of this, the investment in the next stage of FSMC migration that I referenced earlier as forming part of our $80 million of reinvestment spend for FY26 would previously have been reported below the line. And so from FY26, it will be part of OPEX and therefore above the line. Moving now to cash flow, slide 18 highlights both the actual cash flow for FY25 and really identifies the opportunity for growth in future free cash flow. We're pleased to see the improvement in the second half cash flows compared to first half 25, which is always, the first half for us is always a period of high level of cash spend. As a reminder, first half 25 cash flow was minus 239 million and we set a target to improve second half by more than $250 million. pleasingly due to better than expected earnings, better working capital management, and slower remediation payments, free cash flow improved by over $400 million across the period, meaning for the year free cash flow was minus $71 million, funded through a draw in corporate cash predominantly and some on the debt side. It's worth noting that free cash flow in FY25 was also supported by the pause in dividend payments and the fact that we're not expecting to commence regular income tax payments until FY27. The opportunity for free cash flow from FY26 is clear, with expected remediation spend approximately half of FY25 and the completion of the transformation and separation projects at the end of FY25. Following on from cash flow to net debt and cash funding, the first pleasing thing to note is how much simpler this chart is than in previous years, when there were far higher levels of future spend required on transformation and remediation relative to available funding. The improved free cash flow profile in the second half of 25 reduced senior leverage to 1.1 times net debt to EBITDA, with a reminder that the calculation of EBITDA used for our banking facilities is different to the EBITDA I outlined on slide 14, mainly to some IFL subsidiaries being excluded from the calculation of the syndicated debt EBITDA. For FY26, our future funding requirements are the final legacy remediation amounts of $87 million, as well as the repayment of the supported loan notes in May 2026, the early repayment option on which was exercised by NAB in March of this year. In order to ensure sufficient financial capacity to cover the peak funding requirements and capacity in FY26, we've recently increased our total facilities by $100 million which will enable the SLNs to be repaid from existing cash and bank facilities. We expect FY26 leverage to stay within our target range before reducing from FY27 onwards. Turning to dividends, as Scott mentioned earlier, as part of the terms agreed with CC Capital, there'll be no dividend declared under the terms of the scheme implementation deed unless the scheme has not become effective by the 22nd of July, 2026, after which we have the potential to pay a special dividend on a monthly basis at 50% of monthly unpat, so long as that's subject to a range of conditions, most notably that net debt remains less than $500 million. Finally, looking back at the guidance we have for FY25, it's pleasing to note that all guidance metrics were either met or exceeded. For FY26, we're giving guidance on the same basis as FY25, noting that the biggest movement in FY26 is expected to be in Master Trust, with margins expected to reduce to 51 to 52 basis points, as the impact of the pricing changes made to Master Key will begin to impact margin. Given the scale of this impact, it's worth summarising these changes. As we previously noted, the impact of the pricing change made in October 2024, so therefore a nine-month period in FY25, impacted approximately $50 million of revenue, with this reduction being fully funded through fund reserves. In FY26, there'll be a full month impact, meaning an additional $15 million of revenue impacted, and the reserve funding will reduce also by an additional $15 million, meaning a negative impact of revenue and therefore margin of approximately $30 million. In addition, there are other pricing changes impacting Master Trust, most notably the impact of smart choice allocations to alternatives, which has been plagued for some time. In RAP, the reduced guidance reflects the loss of revenue from the exit of a small, the IOOF Alliances business, with other pricing changes largely being offset by other revenue drivers. Asset management will be impacted by Maltese reprice, which impacted about $6 billion of FUM from the 42 billion Maltese portfolio. We also expect performance fees to moderate, given there was an element of fee catch-up in FY25. And in advice, we expect the recent momentum of both Chadforth and Bridges, with similar revenue growth to FY25. While FY26 has a number of important repricings and margin give-up, it's important to note that the timing and quantum of these is in line with what we expected as part of the 2030 vision and strategy. And then finally, as I noted earlier, we expect base OPEX at between 880 to 890 million, with reinvestment OPEX of approximately 80 million. With the guidance covered, that concludes the financial section, so I'll pass back to you, Scott.

Thanks, David. I'd like to take a moment to discuss our 2030 vision and strategy, which we announced last November. Thanks to the early completion of our previous strategy, we've been able to get a head start on several key initiatives. The strategy outlines how we intend to succeed across each business, and we're already making strong progress across the group, with several initiatives tracking ahead of plan. We're driving revenue growth and advice through improved efficiency, client acquisition, with both initiatives progressing well. In RAP, we return to market with confidence, promoting our service strengths, closing capability gaps, innovating to enhance customer outcomes, and enhancing advice practice efficiency. Most initiatives are on track or ahead of plan. In MasterTrust, our focus remains on simplification to reduce costs, launching our AI-enabled digital direct acquisition channel, and scaled engagement of existing members, and preparing for significant investment and relaunch of the MLC brand. In asset management, we're well positioned to capitalise on strong demand for SMAs and accelerate institutional distribution of our unlisted capabilities with both initiatives on track. One of the most important strategic initiatives is the simplification of our Master Trust business. In FY25, we successfully transitioned our Master Trust technology and operations functions to SS&C, an important milestone in our transformation journey. This move involved nearly 1,300 people, four platforms, premises, and supplier contracts. Between now and 2028, will be partnering closely with SS&C to transform the Master Trust business, streamlining to SS&C's contemporary Blue Door platform. One way of working with a strong focus on innovation. Our first migration is planned for first half of 27. This transformation will deliver industry-leading customer outcomes, uplifted member experiences, and a lower cost to serve. With more than two and a half million Australians retiring over the next decade, MLC wants to redefine what retirement means for Australians and superannuation's role in it. Australians are rethinking retirement, working longer, scaling back gradually, and embracing more flexible personal journeys. The traditional split between accumulation and de-accumulation no longer reflects how people live. and the super industry needs to evolve to meet these challenges. MLC Retirement Boost is a key part of our holistic retirement strategy, designed to deliver better outcomes and greater confidence for our customers. With two phases, the saving phase launched in the first half of 26, it's already been launched, and the retirement phase launching in the second half of FY26. It enhances access to wage pension benefits and provides income for life. To support this, MLC has formed a unique partnership with both TAO and Challenger to establish a center of excellence featuring technical distribution specialists and tools like Retirement Boost Optimizer to help clients visualize their full retirement income picture. Challenger will also support distribution through its market-leading retirement team. This is just the first step in MLC's offering in this space, and we're excited for what's to come over the next 12 to 18 months as we continue to enhance MLC's retirement boost to provide advisors with more options and flexibility to deliver personalized retirement income strengths to their clients. Embracing AI is central to executing on our 2030 vision. With a domain-led approach aligned to strategic priorities with a focus on advice and wrap in FY26. We're combining generative AI, automation, and robotics to deliver end-to-end solutions supported by strategic partnerships to accelerate innovation. Our central AI center of excellence will underpin this transformation, delivering enterprise-wide platforms and robust governance. Some of the key initiatives currently underway include a tool that transcribes advice conversations into advisor file notes, a statement of advice to new business solution that allows advisors to upload and isolate information to open accounts on MLC Expand straight through processed, and a client service agreement feature enabling advisors to upload client service agreement forms that automatically populate fee amendment requests within our online services. And finally, in FY26, our focus remains on executing our strategic priorities. We're planning for our first master trust platform migration to Blue Door, relaunching the MLC brand, driving growth by rolling out MLC retirement boost, and increasing net flows into RAP. We're focused on embedding high-performance culture, reducing net costs, and leveraging AI to help deliver our 2030 vision, ensuring that we stay ahead through innovation and efficiency. I'll now throw it to the moderator to open up for questions.

As a reminder, to ask a question, please press star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press star 11 again. In the interest of time, we ask that you please limit yourself to one question and one follow-up, and you may rejoin the queue. Please stand by while we compile the Q&A roster. Our first question comes from Siddharth Parameswaran with JP Morgan. Your line is open.

Good morning, gentlemen. Just one question first, if I can. Just on the scheme, in the MAC clauses, it does make reference to a reference EBITDA and a potential reduction of 15%. as uh triggering um triggering the mac clauses i was just wondering if you could help us understand how that arrangement was struck and you know is it referencing 25 is it referencing is it referencing a forecast if you could just help us understand that please hi sir it's david here um what i can say is that i guess bearing in mind that we signed the city in fy 26

You might expect that the reference EBITDA is a forward-looking view of profitability rather than a historic one. I probably can't go into much more detail than that, but that's how I think about it, a forward-looking view of EBITDA.

Okay, so just to be clear that the guidance that you're giving is broadly consistent with that.

So certainly we had a pretty good view in terms of both budgets for FY26 and our FY26 plan. as well as the FY25 results when we negotiated around that 15%. So you can take into that that we're pretty comfortable in terms of where that was set. And as I said, with a forward-looking view of EBITDA.

Okay, okay. And given that I'm only allowed one follow-up, I just wanted to check just on the timing for regulatory approvals, particularly APRA. Just wondering how long are you expecting that to take?

Yeah, we expect that to take approximately six months, so circa February next year. But it will depend on APRA's process. But that's the sort of indication that we have on engagement with APRA.

Okay. And is there any concern that they have around private equity or anything like that? Just keen to understand what questions they have.

look not uh not not particularly um and and certainly they're looking at this from specifically from the point of view of cc capital which is not your typical pe approach um so no not that has been called out okay thank you thank you our next question comes from nigel pitaway with city your line is open

Well, great. Good morning. Just wanted to ask a bit more about this retirement income product and why you consider it to be innovative and to what extent does it rely on the sort of low deeming rates at the moment, which obviously the government is already suggesting it's going to focus on moving forward?

Yeah, it's certainly... Look, it's certainly innovative. We're a fast follower to what AMP has done, but we have... additional features to our solution that will be launched over the coming six to 12 months. And so it does provide a substantial uplift to retirees' outcomes if they do save through the phasing saved in effectively deferred income structure within superannuation and then draw down at least in part with the longevity solution. The government's changes were not surprising. They recently increased the deeming rate by 0.5 from 2.25 to 2.75. It has a minor impact on the benefits to customers, that change.

Okay, but obviously they're suggesting that's the first of several.

Yeah. It would have to go a long way to remove the benefits of the solution. I mean, it would have to go literally up another 5%, which is highly unlikely.

Okay, fair enough. And then just as a follow-up, just in terms of the cost... Sorry, Nigel, just on that.

The solution is not simply about access to part pension through the solution, but also the longevity of income. So customers knowing that they will have income for life and having the confidence to spend as a result of that income for life.

Okay, fair enough. And then just as a follow-up, I mean, previously you said that around about 50% of the future cost saves would accrue through the Master Trust business? Is that still the case where we're currently set?

Yes, it will accrue as a result of Master Trust simplification, yes. Yeah. So they might not return up in Master Trust P&L, but there is a result of, largely they will, but as a result of that simplification, there is a lot of the cost will impact on Master Trust, but it will also impact other parts of the business, if that makes sense.

Right, okay, but if we were to take the overall cost saves being targeted?

Yeah. The transformation of Master Trust, that's right.

Yeah, fair enough.

All right, great, thank you.

All right. Thank you. As a reminder, to ask a question, please press star 11 on your telephone. Again, that is star 11 to ask a question. Our next question comes from Andre Stadnik with Morgan Stanley. Your line is open.

Good morning. Can I ask my first question around the Xpand RAP platform?

Sure.

What other product enhancements are you planning in terms of making the RAP platform more competitive?

Yeah, so this year we have launched Essentials Plus, what we're calling Essentials Plus, which is the... the mini-wrap version, which is very popular, I would say, with the advice community. That has included more index funds and included some more term deposits on that particular version of the product. So that's what we've done this year. Also, we've also launched the savings phase of the MLC Retirement Boost solution on the wrap. And we will continue to roll out that solution to its fullest extent over the coming 12 months. So initially very much focused on the, from a product perspective, on the rollout of MLC Retirement Boost through this year. But our service, the service that we provide in the WRAP business through both Extra and Essentials is fast becoming industry leading. And we're seeing that in the independent research results coming through. Service is a really big differentiator for advisors. If service is poor, they will look elsewhere. And if service is good, they will not only stay but encourage others. So service, we've turned around service in the last 12 months from okay to excellent. And secondly, with the using AI and robotics we are further improving straight through processing from advisors back office to the platform. I mentioned a couple. One was the client service agreement, the fees forms that go straight through now, or can go straight through now. That's being rolled out to all advisors as we speak. And SOAs, so basically removing the need for re-keying from an SOA to a new business application by an advisor's back office, and that will go straight through into the Xpand platform, extracting only the necessary data from the SOA straight through into the, implementing new business straight through into Xpand. So there's a number of aspects of enhancements that are coming this year. and in subsequent years. I won't elaborate any further on product innovation on the RAP platform, but there is other things planned.

Thank you. For my second question, the slide seven on the advice, the bottom right is talking about seeking to increase clients per advisor by almost 50% into F523 from 96% up towards 140. What kind of tools will allow that to happen? And are those tools internal to IFL or some of them external tools? So, yeah, how are you thinking about the tools needed?

Yeah, look, the internal, the tools, it is a lot about providing efficiency, administrative efficiency for advisors and their teams through the use of technology Some of those tools will be developed specifically for us using AI, for example, but others will be adapted from industry technology that's available. So we see a significant uplift in advice efficiency as a result of changing the advice process and review processes, allowing advisors to be able to spend more time with clients. At 140, I don't think it's a huge stretch, quite frankly.

Thank you. Thank you. Our next question comes from Siddharth Parameswaran with J.P. Morgan. Your line is open.

Just one other question from me. Just on the RAP platform and in MasterTrust, we have seen improving flows, but we don't get a good feel for what's happening with advisor numbers using the platform and also maybe just the number of accounts that you have on both the MasterTrust and RAP platform. I was wondering if you could help us just understand the trends in both of those, please.

Yeah, well, they're quite different, obviously, and advisors generally in the industry have moved away from using Master Trust towards RAPs, and that trend has been going for a couple of decades, quite frankly. So we don't have the specific advisor numbers utilising platform today, but I can tell you there's been an uplift, particularly with those advisors where Perhaps the RAP Expand was part of one of the platforms that their office used, but increasingly is becoming the lead platform that they're using, again, because of the service that they're experiencing from the Expand operations team. So we still, we have had a number of new advisors using the platform, but I would say most of the uplift is reactivating advisors that perhaps had had books on Expand or had acquired books or had been waiting for migration to occur before they started actively using it again. So that's what we're seeing at the moment. So sorry I don't have specific numbers on that, but we can try to get those to you. In terms of number of accounts, we are seeing account growth. Again, I don't have the numbers, but we are definitely seeing both advisor growth and account growth on WRAP On Master Trust, I don't have a good view on Master Trust account numbers. Obviously there has been, Master Trust has gone through a period of significant outflow, so account numbers through that period would have reduced, but that is stabilising. Advisors, there are, you know, probably a couple of dozen advisors that still use Masterkey pretty actively, MLC Masterkey, which is the Master Trust product, pretty actively. And they are, you know, they continue. So it's not a huge population of advisors using the Master Trust platform today. Yeah, if you're thinking about how we'd compete with Colonial First State, for example, our mini-wrapout, Expand Essentials product is more in that market, and that has been going extremely well.

Okay. But just to follow up, I mean, Master Trust is, as you say, it's declining in use across the industry, but you do have targets of having net inflows in that?

Yeah, absolutely. We presented those in our strategy update last year. Look, there's still opportunity in the advice market for Master Trust, but advice distribution of Master Trust is not what it once was, you know, say 10, 20 years ago. The market has moved to consumer direct, so our digital direct acquisition strategy, which we're launching in the second half of 26, will be hugely beneficial. The largest churn in super funds, which is what the Master Trust is, essentially a pooled super fund, is in consumers choosing to change their super themselves. So that's the largest amount of churn. And we haven't been playing in that part of the market because we haven't had capability. And my rough estimate of that churn in market is about 50 billion. And if we can participate in that, we are participating by losing members to funds that actively operate in the digital direct acquisition channels, but we haven't actually been able to, we haven't had the capability to compete in that segment. So that's the big one. Corporate super is another large, historically another large area of master trust acquisition and flow. It's been a bit more dormant in recent years. but we see an opportunity to reactivate that and benefit from corporate super flows into master trusts. And the big job that we really have to do is customer retention. So we have a lot of customers, circa a million customers, in the master trust platform, and we need to retain more of those. And we haven't had good capability in that respect. So our AI-enabled digital scaled engagement, which again we are launching in the second half of this year, will have a huge impact on retention. Those things combined, plus the relaunch of the MLC brand, which is critical to both digital direct acquisition and scaled engagement and retention, will have a significant improvement on our mass trust flows. We expected last year in November that we expected to get to net mutual flows by FY28 and positive flows by FY30, about $2 billion per year. I believe that is forecast to be conservative. Okay, thank you very much.

Thank you. I'm showing no further questions at this time. I would now like to turn it back to Andrew Ellick for closing remarks.

Thank you. And thank you, everyone, for your time this morning and for your ongoing support. We look forward to speaking to you again at our first half of 26 results, but please reach out in the meantime if you have any questions.

This concludes today's conference call. Thank you for participating.

You may now disconnect.