How Did InvestSMART Grow Funds Under Management to $750M in Q2 FY26?
InvestSMART Group Limited reported a 2.2% increase in Funds Under Management to $750 million as of December 2025, supported by growth in Professionally Managed Accounts and rising subscription income. The company also extended its Employee and Director Share Plan loans and executed an on-market share buyback.
- Funds Under Management (FUM) rose 2.2% to $750 million
- Professionally Managed Accounts increased to 3,373 accounts
- Subscription income up 1%, ARPU climbing to $608
- Insurance commissions declined by 10%, reflecting expected attrition
- Employee and Director Share Plan loans extended to November 2028
Steady Growth in Funds Under Management
InvestSMART Group Limited (ASX, INV) has reported a modest but meaningful increase in its total Funds Under Management (FUM), reaching $750 million as at 31 December 2025. This 2.2% rise from the previous quarter underscores the company’s ongoing focus on expanding its digital wealth management platform, particularly through its Professionally Managed Accounts (PMA) and active exchange-traded funds (ETFs).
The PMA platform, launched in 2018, continues to gain traction with the number of accounts growing to 3,373, up from 3,280 in the prior quarter. This growth reflects investor appetite for diversified, low-cost portfolios aligned with individual goals, leveraging ETFs for cost efficiency and risk management.
Mixed Revenue Trends and Product Development
Management fees edged up slightly, contributing to total operating income of approximately $2.48 million for the quarter. However, commissions from insurance products fell by 10%, consistent with an anticipated annual attrition rate of around 8%. This decline highlights a potential headwind in ancillary revenue streams, even as the core investment business strengthens.
Subscription income from the Intelligent Investor publication, a key content-driven revenue source, increased by 1%, with average revenue per user (ARPU) rising to $608. This suggests that InvestSMART’s strategy to deepen engagement through quality content and digital tools is resonating with its subscriber base.
On the product front, the company has introduced a new Custom Portfolios feature, allowing investors with portfolios over $10,000 to tailor their ETF holdings. This innovation aligns with broader trends towards personalised investment solutions and could enhance client retention and acquisition.
Corporate Actions and Outlook
InvestSMART also extended the loan terms under its Employee and Director Share Plan to November 2028, reflecting confidence in long-term value creation. Additionally, the company repurchased 48,013 shares on-market during the quarter, signalling a commitment to capital management.
Chairman Paul Clitheroe and Managing Director Ron Hodge emphasised the company’s comprehensive product suite, including funds management, advice, and self-managed superannuation fund (SMSF) administration. They highlighted ongoing efforts to amplify digital advice offerings and explore growth opportunities in wealth protection and other emerging areas.
The company’s half-year financial results are due for release on 18 February 2026, which will provide further clarity on the sustainability of these trends and the impact of new initiatives.
Bottom Line?
InvestSMART’s steady FUM growth and product innovation set the stage for its next phase, but declining insurance commissions warrant close watch.
Questions in the middle?
- Will the decline in insurance commissions accelerate or stabilise in coming quarters?
- How will the new Custom Portfolios feature impact client acquisition and retention?
- What growth opportunities will InvestSMART prioritise beyond its current digital wealth platform?
