Highlights

• Funds Under Administration (FUA) have now reached $2bn ($2.05bn at 12th October);

• Record quarterly net inflows1 to HUB24’s investment and superannuation platform of $337m ‐ up 97% on pcp2;

• White label superannuation and IDPS brands now launched for the Infocus Wealth Management Group;

• Successful launch of new service for self‐directed investors with $29m transitioned on 1 July 2015.

• Rapid growth in FUA and net inflows

HUB24 has exceeded $2bn in FUA, representing 92% growth in FUA in the past 12 months. Throughout the first quarter of FY2016, HUB24 also recorded its highest quarterly net inflows of $337m.

This follows three quarters of record gross and net inflows for HUB24 in the 2015 financial year, in addition to a 36% increase in the number of advisers using the platform over the past 12 months.

The growth in FUA is spread across HUB24’s retail and licensee branded white label products as well as both long standing and recently signed licensees.

• Licensees who became customers prior to 30 September 2014 now account for 81% of FUA and have contributed to 61% of FUA growth over the past year to 30 September 2015.

• Licensee groups signed during the past year, including Paragem, now account for 19% of FUA having contributed to 39% of FUA growth over the past year to 30 September 2015.

• FUA in HUB24’s retail offering now accounts for 54% of total FUA and has contributed 56% to FUA growth over the past year to 30 September 2015.

These results demonstrate that the trajectory of reliable and strong growth has continued with long standing licensees, in addition to significant inflow contributions from newer licensees. Growth from HUB24’s retail offer is now comparable with the growth in white label offers.

Total FUA as at 30 September 2015 was $1.98bn, an increase of 92% from 30 September 2014 and 16% for the quarter. This was achieved in a volatile market which recorded a negative return of 8% in the corresponding quarter (ASX200).

H24 Graphs
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Business Update

HUB24 has a strong pipeline of new opportunities and is in advanced discussions with several potential licensees. During September, two new IDPS and superannuation white label offerings for Infocus Wealth Management Group were launched.

HUB24 also significantly expanded its broad and unbiased choice of investments with the addition of 15 new ETFs and 18 managed funds in the IDPS product throughout the quarter, in addition to 10 new ETFs and 22 managed funds on offer through its superannuation platform. This reflects the company’s ongoing commitment to provide independently‐minded advisers with full choice and flexibility in order to meet the individual needs of their clients.

Development activity is well advanced on our new International Equities trading capability which will enable investment managers, advisers and their clients to access international equities within managed portfolios. This will provide efficient, cost effective, transparent and tax effective exposure to this asset class which has traditionally been accessed via ETFs and managed funds.

This new offering is expected to increase HUB24’s market leadership position in the provision of managed portfolios. The formal launch of this service will be announced in the coming weeks.

HUB24 Managing Director Andrew Alcock said: “HUB24 is fast becoming the platform of choice for independently‐minded advisers. The milestone achievement of $2bn in FUA marks a tremendous period of growth for the company.

“We are very focussed on continuing to build our scalable business which revolutionises the way people manage their investments.

We have the most functional managed portfolio and SMA platform on the market with the largest number of portfolios available. The increase in FUA is a reflection of our expanding client base, driven by adviser demand for choice when it comes to investment products, term deposits, insurers, margin lenders, and the ability to report on non‐custodial assets”.

“Our steady growth has also been driven by a cohesive and experienced management team which has worked together to deliver a solid track record of success and innovation,” Mr Alcock said.

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