HUB24 believes it has the capability to triple its adviser reach in the upcoming years, ultimately serving three out of every four advisers on the ASIC Financial Adviser Register.
Releasing its financial year results to the ASX on Tuesday morning, HUB24 reported the number of active advisers using the Platform increased to 4,011 – up 15 per cent on the prior year – with 113 new distribution agreements signed.
That accounts for roughly a quarter of the 15,700 advisers on the ASIC Financial Adviser Register, but the company believes it can reach 75 per cent of the adviser market.
“We do that incrementally,” HUB24 chief executive Andrew Alcock tells Professional Planner.
“We’ve got agreements with licensees to cover 75 per cent of the market. We gradually pick up new relationships from… we gradually pick up new advisers each year and we get new flows from them.”
HUB24 has grown from 1227 advisers at the end of FY18 – less than 5 per cent of the market at the time – after the Hayne royal commission that saw the banks exit and previously aligned advisers search for independent platform options.
Despite that 4011-adviser number, HUB24 still only has a 6 per cent market share which it intends to build on.
However, Conexus Institute analysis of APRA super fund inflows earlier this year found HUB24 was behind only AustralianSuper for super inflows.
“We only have 6 per cent market share so we should continue to grow and that’s our plan, our plan is to keep investing to lead,” Alcock says.
“At 6 per cent market share, why can’t we do far better than that? We’ll keep extending our lead is the plan.”
Additionally, the firm further highlighted the self-licensed adviser sector, which has been embracing the use of specialist platforms.
The platform provider’s underlying net profit after tax rose 64 per cent to $58.8 million, from total revenue of $279.5 million.
HUB24 total funds under administration (FUA) was $80.3 billion, up 23 per cent over last year, comprising platform FUA of $62.7 billion, which is up 26 per cent.
Outside of financial growth, Alcock says the firm, which is a member of the Financial Services Council, will continue to play an advocacy role in the industry.
“We’re now in a position we didn’t think we’d be, and we have a role to play,” Alcock says.
