HUB24 has posted record levels of new inflows off the back of its white labelled investment platform service and predicts higher growth as its white label superannuation products begin to attract adviser interest.
HUB24 provides white label investor-directed portfolio services versions of its platform to Premium Wealth Management, Interprac and Total Financial Solutions under arrangements signed in December 2013.
HUB24 chief executive Andrew Alcock stated the new white labelled services, as well as serving existing clients, boosted inflows for the March quarter to $108.7 million, with March recording net inflows of $49 million.
“This boosted funds under advice (FUA) at the end of the quarter to $730.2 million and represents a growth rate of 120 per cent over the past 12 months. This strong growth continued into April with FUA reaching $781 million and net inflows of $47.6 million for the month,” Alcock said.
He said the growth also allowed HUB24 to post its maiden month of positive gross profit in March 2014, in which profit from platform revenue exceeded direct platform operating costs.
Since March 2013 net fund inflows have grown by 71.7 per cent while platform cash inflows have grown by 169.9 per cent, with the number of advisers using HUB24 increasing by 53.2 per cent from 205 to 314.
Alcock said HUB24 expected inflows to continue to accelerate as its full product suite was now on offer to advisers after the April launch of white labelled superannuation platform services.
“Continuing with our focus to maintain and extend HUB24 leadership, we plan to release multi-broker capabilities in the third quarter of this calendar year which will allow advisers and their clients to select their own preferred broker for equity investing. We plan to follow this with a comprehensive reporting service for non-custody assets which will underpin some exciting growth prospects,” Alcock said.
