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Insignia Financial shares tumbled 11.7 per cent to $2.57 after it said weaker capital markets in the three months ended June and a decision to cut fees at its core platforms business contributed to annual net profit falling 15 per cent to $191 million.

The ASX-listed wealth giant formerly known as IOOF, which acquired MLC’s financial advice business for $1.4 billion in 2021, said total funds under management and administration climbed 1.5 per cent to $295 billion over the 12 months ended June 30.

Total operating expenses dropped 5 per cent on the prior year as it completed a cost-out program totalling $218 million and flagged this financial year as the final chapter of a three-year separation, integration, and cost-cutting program for the MLC Wealth business it acquired from National Australia Bank.

Insignia will pay a final dividend of 9.3¢ per share, taking total dividends to 19.8¢, or 16.1 per cent lower than a year ago. Earnings per share fell to 29¢ from 34.5¢. The group’s statutory net profit, including the impact of discontinued operations and other adjustments, climbed 39 per cent to $51 million.

The group’s core superannuation and platforms business for advisers and employers posted a 14.7 per cent fall in adjusted net profit to $233.3 million, on net revenue of $952.8 million, down 6.3 per cent.

Total funds under administration at its platforms business climbed 5.5 per cent to $209 billion, with its net revenue margin slipping 0.9 per cent to 46.8 per cent as it cut fees across some of its MLC Workplace and IOOF Employer Super offerings.

Its struggling financial adviser business including MLC Advice posted an adjusted loss of $33.9 million on sales of $204.6 million as it again touted a turnaround strategy to spin off its self-employed advisers division into a standalone business that it will gradually reduce its ownership stake in.

Its asset management business saw adjusted net profit fall 1 per cent to $72.9 million on total funds under management 6.9 per cent lower to $85.9 billion.

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