Quarterly business update
Highlights
• Record quarterly gross inflows to HUB24’s investment and superannuation platform of $403m – up 78.3% on pcp and net inflows of $331m
• Total funds under administration (FUA) of $2.37bn at 31 December 2015
• Launch of International managed portfolios in December 2015
• Secured white label partnership with Fortnum Financial Group with $650m of FUA to transfer to HUB24 in 2HFY16
• The business is on track to be cashflow positive on a monthly basis by March 2016 as previously advised
Accelerating growth in FUA and net inflows
HUB24 reports record gross inflows for the second quarter of FY2016 of $403m, taking total FUA to $2.37bn. The growth represented an 89% increase in FUA for the 12 months to 31 December 2015, with net inflows of over $1.1bn and a $1.1bn FUA increase for the 2015 calendar year.
A strong first half resulted in a 68% increase in average monthly net inflows to $111m per month, up from $66m per month in FY15 (2HFY15: $73m per month).
HUB24’s total FUA is split equally between its retail and licensee branded white label products. Over half (57%) of the quarterly net inflows arose from advisers using HUB24s own retail products. This reflects increasing support from the broader financial adviser market.
The company is experiencing accelerating and reliable growth due to increasing flows from longer standing licensees, in addition to significant inflows from newer licensees.
Business update
HUB24 continues to invest in product development and staffing to support ongoing growth as the company looks to convert a strong pipeline of significant opportunities. During the quarter HUB24 signed five new distribution agreements with licensees.
Launch of international managed portfolios
In December, HUB24 launched international managed portfolios on its platform, enabling investors to directly own international listed companies via professionally managed portfolios from more than 15 global markets across North America, Europe and Asia.
Investors can now easily and affordably directly own such well-known companies such as Colgate, Nestle, Toyota, Visa, Microsoft and Apple via the international managed portfolios on our market-leading investment platform.
White label partnership with Fortnum Financial Group
In October, HUB24 announced a new white label partnership with Fortnum Financial Group involving the transfer of over $650m to HUB24 in 2HFY16. Work has been progressing well since the announcement with the transition on track and the initial launch of white label products planned for February.
HUB24 Managing Director Andrew Alcock said: “It is pleasing to report another record quarter of growth in FUA for the business. In the past year HUB24 has almost doubled its total FUA as a result of increasing support from our valued clients. We are excited about our ongoing product developments and have a promising pipeline of growth opportunities for the business that should sustain our growth trajectory.”
“Our growth is underpinning HUB24’s strong financial results and we are thrilled to be advancing towards a monthly cash flow positive position which we expect to achieve by March this year.”
