HUB24 chief executive Andrew Alcock

Distribution agreements signed during the December quarter have given platform provider HUB24 a 16 per cent increase onto its platform.

In a quarterly update posted to the ASX on Tuesday morning, HUB24 reported 4297 advisers using the platform as of December 2023, compared to 3692 in December 2022.

“New advisers from the Insignia Financial transition represented just over half of the quarterly increase,” the update said, referring to the transition from Insignia’s private label Rhythm Super.

HUB24 was appointed as administrator of Rhythm in December 2020 after Insignia terminated its contract with BT.

Platform FUA grew just under 30 per cent, from $55.8 billion to $72.4 billion, with “record” net inflows of $4.5 billion in the December quarter – a 60 per cent increase over December 2022, but that included $1.8 billion transferred from Rhythm.

“The FUA from the transition has been included as institutional in the composition of platform FUA,” the update said. Institutional FUA makes up 14 per cent, with the rest labelled as retail.

“Platform FUA was $72.4 billion as at 31 December 2023, which included positive market movement of $2.9 billion for the quarter,” it said.

“Market volatility during 1HFY24 resulted in non-linear FUA growth with some months impacted by negative market movement.”

Additionally, the company said it remained on track to meet its target of $92 billion to $100 billion for platform FUA by FY25.

“HUB24’s proposition continues to resonate with licensees, advisers and their clients driving strong growth in net inflows and a solid opportunity pipeline across all customer segments,” the update said.

“This includes large national licensees, aggregators, brokers, boutique advice practices and self-licensed advisers.”

The Equity Trustees (EQT) transition of approximately $4 billion FUA “continues to progress” with $2.5 billion to $3.75 billion expected to be transferred by the end of the financial year.

HUB24 announced last April it entered into a heads of agreement to provide custodial platform administration and technology solutions for EQT and AET trustee services clients.