Unity 5.4 Gpu Instancing reduces amount of saved batches to zero

I just updated to 5.4 and I am trying to wrap my head around the way that the new gpu instancing works. As far as I am aware in order to use this new feature you just need to switch your material to the new InstancedShader and all objects of the same Mesh and Material get drawn together. However, this is negating all previous optimization done. It reduces the amount of "Batches Saved" to 0 and piles them all into the "Batches". In some cases this also increases the "SetPass Calls" pretty drastically as well.

The test scene I am using has 3 meshes all sharing one master material and all meshes are static.

With InstancedShader:

With Standard Shader:

Hoping I am just using this wrong and someone can just point me in the right direction.