HUB24 posts significant FUA growth in 2016
The ongoing growth of funds under administration (FUA) and strong net inflows helped HUB24 post its first half year profitability before tax for the half year ended in December, 2016,
The retail FUA increased by 75 per cent counting year-on-year, and amounted to $4,149 million.
The retail net inflows reached $328 million at the end of December, which according to the company, were averaging $116m per month for 1H FY17, an increase of 14 per cent over average monthly net inflows for FY16, and were adjusted for the Fortnum transition in 4QY16.
However, counting year-on-year, the retail net flows decreased by 0.9 per cent at the end of the calendar year 2016.
HUB24 said the results were driven also thanks to the increased number of independently owned licensees with 63 per cent of net flows flowing into the HUB24 branded platform and the company's 12 white label clients accounting for the remaining 37 per cent of retail inflows.
HUB24's managing director, Andrew Alcock, commenting on the quarterly update, said that the continuing strong inflows, the ongoing enhancement of the platform and the growth of Paragem did all contribute to "these pleasing results".
"Our focus on providing exceptional products and services to our clients has resulted in HUB24 delivering its first half year of profitability," he said.
"We are excited about the future of wealth management in Australia and look forward to our expanding role as the industry continues to provide better and more valuable solutions for advisers and their clients.
"Our acquisition of Agility Applications underscores our commitment to continual innovation with the aim of creating enduring products that offer real choice and real benefits across the board."
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