Wholesale pricing offered to retail investors by Prodigy’s Flinders fund via HUB24

From

Andrew Alcock

In a major development for the industry, portfolio managers, financial advisers and their clients are able to access institutional pricing, thanks to an initiative between leading platform HUB24 and Flinders Investment Partners, part of Prodigy Investment Partners’ boutique group of funds.

Steve Tucker, Prodigy’s Executive Chairman, officially launched the initiative today and said: “The Flinders Emerging Companies Fund can offer institutional pricing because of the efficiency and effectiveness of the market-leading managed portfolio functionality on HUB24.”

“Portfolio managers on HUB24 can now access the fund at this exclusive institutional rate and pass on the benefits to financial advisers and their clients.”

Andrew Alcock, Managing Director of HUB24, said: “Portfolio managers, financial advisers and their clients are the winners, accessing specialised investment IP at a fraction of the usual cost; at up to 60% less than the retail rate.”

“This initiative further illustrates the increasing power of advice coupled with a non-aligned platform and a boutique investment offering.”

“It is another example of how HUB24 continues to support innovation in the investment management space,” he said. “We expect to be able to offer similar opportunities in the future.”

Mr Alcock added: “HUB24’s scale and technology enable fund managers to reduce pricing as a proportion of the traditional distribution cost is offset. There are no rebates or margins retained by HUB24, unlike other platforms’ business models where fund managers offer discounts to platforms which then repackage the fund. HUB24 investors get all the benefits of the lower fee.

“There’s a real value-add in supporting the growth of new fund managers who have track records of outperformance and are supported by institutional grade infrastructure and experienced executive teams. Encouraging innovation and competition will no doubt lead to superior outcomes for clients.

The Flinders Emerging Companies Fund was launched in August 2015 and provides investors with an actively managed portfolio of listed small and emerging Australian companies. The experience and successful track record of the Flinders investment team, coupled with in-depth proprietary research and analysis, makes Flinders one of the preferred investment managers in Australian small and emerging companies.

Prodigy is a multi-boutique investment management house that provides infrastructure and operational support for boutique fund managers, such as Flinders.

The Flinders team commented that low interest rates and a lacklustre economy suggests that blue chip stocks will struggle to deliver capital growth in the years ahead. “Looking at the ASX top 20 – right across the big banks, miners, supermarkets and Telstra – there’s nothing that looks very attractive in terms of growth, so it is a perfect time to look at the smaller end of the market,” said Richard Macdougall, co-head of Flinders. “Generally, valuations in small caps are not as stretched as they are in large caps at the moment. There are lots of good opportunities, particularly in sectors where we expect a lower dollar to help such as agriculture and tourism.” The Flinders team currently favours small caps that are re-investing for future growth.

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