Andrew Alcock
HUB24 Limited (ASX: HUB) have announced the investment and superannuation platform has reached a new funds under administration (FUA) milestone of over $10 billion at 31 December 2018. In the six months following financial year ended 30 June 2018, where the platform finished the year with $8.3 billion in FUA, HUB24 is continuing to experience strong growth and maintained the fastest rate of growth in the industry in percentage terms relative to its size[¹]. The latest available data from Strategic Insights now has HUB24 in overall 2nd place for quarterly net inflows as at 30 September 2018.
Despite challenging financial markets, HUB24’s market-leading platform has continued its strong growth trajectory in the first six months of this financial year driven by strong flows from both existing advisers and new relationships.
Since 31 December 2015, HUB24 has grown from $2.4 billion in FUA on platform to over $10 billion today. During the same 3-year period, the number of advisers using the platform has increased from 556 to 1,456.
Specialist platforms collectively overtook traditional platforms by achieving 67% share of annual market inflows in the year ended June 2018². This trend has continued with the September 2018 data indicating specialist platforms continued to increase their share of net inflows[¹].
Commenting on the $10 billion milestone, HUB24 Managing Director Andrew Alcock said: “We’re delighted to maintain our position as the platform provider with the fastest growth rate in the market.”
“In the midst of structural change and much distraction across the industry we have maintained momentum with advice networks and individual practices continuing to choose HUB24 because of our commitment to constant innovation, market-leading technology and superior customer service. In many cases our clients are moving away from relationships with incumbent platform providers, and transitioning FUA to HUB24.”
In the financial year 2018, the company signed several new white-label platform agreements including one with Fitzpatricks Private Wealth which in early December transitioned FUA from their inhouse MDA solution to the HUB24 platform. Additionally, HUB24 has recently launched branded platform solutions for a number of national advice groups, including AdviceIQ a licensee with over 30 authorised representatives and PortfolioIQ a collection of 25 smaller licensee businesses, who selected HUB24 for their ability to provide a flexible platform solution that catered to the needs of their advice networks.
Well-positioned for further growth
Mr Alcock said HUB24 is well-positioned for further growth, thanks to the current market dynamics and a strong pipeline of new business. “The traditional ‘asset administration’ role of platforms has been disrupted and it’s now about creating value in investment selection, tax management, portfolio construction and data integration. HUB24’s strong pipeline of new business is testament to our strategy and continued investment, with the expertise of our subsidiary Agility Applications and the new functionality of ConnectHUB contributing to HUB24 being chosen to provide platform solutions. We are very pleased that two large national brokers chose HUB24 during the last quarter, including Patersons Securities.”
HUB24 is progressing its ConnectHUB offering, which will allow advisers to integrate multiple external data sources in real time, including cash management accounts and annuities, among others, enabling them to tailor their platform experience and provide a consolidated view of wealth for their clients. ConnectHUB is currently in pilot with several advisers and will be rolled out to the broader market during the remainder of financial year 2019.