Mr Davidson told the Powerwrap annual general meeting in Melbourne today that net funds flows were favouring the non-aligned platforms.

“Headwinds from the Royal Commission’s scrutiny of the vertically integrated wealth management business model have potential to drive growth of non-bank platform providers.

“Net funds flows are clearly favouring the challengers and this is likely to continue.”

Mr Davidson said Powerwrap offered a more sophisticated product than other challenger platforms and aimed to be the platform of choice for high net worth investors.

Powerwrap’s platform already has larger than average portfolios at around $1.4 million each, and offers a range of sophisticated services and alternative investments.

There are more than 435,000 high net worth investors in Australia who combined are responsible for $1.72 trillion in investable assets.

“Our turnkey service is particularly attractive to advisers looking to establish more independent operations,” Mr Davidson said.

Mr Davidson told the meeting that Powerwrap’s funds under administration (FUA) continued to show good growth and had increased 22% between FY17 and FY18.

Powerwrap had $7.8 billion in FUA at the end of the September quarter 2018.

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