Highlights:

• Strong quarterly net inflows^[1]  for Q2FY18 of $554m and gross inflows of $771m.
• Funds under Administration (FUA) of $6.9b at 31 December 2017 and now $7.0bn (up from $5.5b at 30 June 2017).
• 14 new licensees signed distribution agreements during the quarter representing significant growth opportunities.
• HUB24 and Agility’s joint development initiative has been released to a select number of pilot clients
• Release of new platform enhancements that create adviser efficiency and support their compliance obligations.
• HUB24 head office team now residing in new premises supporting productivity and future growth.
• Paragem has licensed an additional advice practice and now comprises 32 advice practices and 76 authorised representatives.

Continuing growth in FUA and net inflow

Gross inflows for the quarter were 62% higher than the prior corresponding period and represent the second highest inflow result for HUB24, following the record set in Q4FY17 (where regulatory change created increased superannuation activity across the industry leading up to 30 June 2017). The result was characterised by strong flows from new and existing advisers and reflects the company’s investment in our sales and relationship team to support ongoing adviser take up whilst continuing to secure new opportunities.

In terms of market share of annual net inflows, HUB24 achieved 5th place across the industry having received 9.8% at 30 September 2017 and achieved 4th place for the September quarter with 13.5% of net inflows. This latest available data also indicates that the company’s market share of FUA has grown from 0.7% as at 30 June 2017 to 0.8% at 30 September 2017^[2] . These results illustrate the ongoing shift in wealth management towards market leading and innovative platform solutions. Average funds under administration per adviser increased to $6.6 million and our sales pipeline continues to strengthen across the HUB24 platform, Paragem (licensee) and Agility business segments.

Business update

During the quarter, 76 new advisers were introduced to the platform and 27 new managed portfolios were established covering a range of investment styles across 7 investment managers.

HUB24 also signed 14 new distribution agreements. Included in these agreements are some significant boutique advice firms representing some 110 advisers nationally and total FUA, not currently held on the platform, of over $1.5bn. Flows have already commenced with transition activities also underway in several of these licensees. Together these new relationships represent a significant growth opportunity.

On Monday, HUB24 announced via a media release new platform enhancements aimed at helping support advisers with business efficiency and compliance. An integrated Records of Advice (ROA) solution has been launched which allows licensees to upload their own template and advisers to generate an ROA when they trade on their client’s account.

In addition, a superannuation contributions tracker is now available to assist advisers using HUB24’s platform to track their clients’ contributions and check how they are progressing towards their contribution cap limits.

These enhancements are in direct response to adviser demand for the industry to provide innovations which create efficiency and assist with alleviating the increasing compliance burden on advisers.

HUB24 and Agility development

HUB24 and Agility’s joint development initiative has been released into production for a select group of pilot clients representing a combination of both stockbroking and more traditional wealth adviser practices.

This initiative allows advisers to link together HUB24 platform accounts, stock broking accounts and direct bank accounts via direct data interfaces to the underlying financial product providers. Investors, advisers and back-office users will benefit significantly from this single aggregated view of multiple accounts through a new and improved user interface.

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[1] Net inflows represent gross inflows less outflows and do not include market movement
[2] Source: Strategic Insights (Plan For Life). Analysis of Wrap, Platform and Master Trust Managed Funds at September 2017. HUB24 is the fastest growing wrap platform relative to its size in percentage terms, 5th fastest in terms of dollar based net inflows.

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