HUB24 launches innovative portfolio management tool

From

Andrew Alcock

Leading wealth management platform provider HUB24 (ASX: HUB), yesterday announced the launch of an innovative portfolio management tool that allows portfolio managers using the platform to dynamically and efficiently adjust their managed portfolios to respond to market conditions.

The new capability, called Progressive Portfolio Implementation (PPI), allows different target weightings to be set for new inflows and provides portfolio managers with the flexibility to allocate the new client money differently, substituting into alternative securities in line with the set investment objectives.

Andrew Alcock, Managing Director of HUB24 commented “this is another example of how HUB24 is using technology to transform the industry by leveraging investment management expertise to create better outcomes for advisers and their clients. The removal of these constraints within the portfolio allows the portfolio manager to fully implement their strategy”.

The solution is designed to help portfolio managers better manage new inflows in scenarios where it may be beneficial for the new monies to be managed slightly differently to the existing portfolio. For example, a portfolio manager may hold the view that a security is nearing its peak value. While they are comfortable to continue to hold that security for existing investors, they would prefer new funds to be invested in an alternative for a period of time. PPI will allow portfolio managers to efficiently implement these decisions across all investors within a managed portfolio.  This also means clients benefit as they may not have to pay as many transaction fees.

Jason Entwistle, Director of Strategic Development at HUB24 said the enhanced portfolio management tool was a unique solution that had the potential to improve portfolio performance for clients, especially in the first few years they are invested.

“Managers receiving new inflows from investors normally have to buy all the holdings to match the existing weightings of their portfolios and are then forced to sell some of those recently-purchased assets shortly after to adjust to the new weightings. With PPI, however, managers can manage those inflows more efficiently in anticipation of highly probable changes,” Mr Entwistle said.

“PPI may help enhance performance as portfolio managers don’t have to purchase securities at peak valuation for new funds and can also deliver tax efficiencies for investors by not having to sell securities before their time.”

The functionality is now live and being utilised by Akambo Financial Group to manage their portfolios, it will be rolled out to other portfolio managers over coming months.
HUB24 was recognised as the Best Managed Accounts functionality in the recent Investment Trends 2017 Platform Competitive Analysis and Benchmarking Report for the second consecutive year.

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