HUB24 has posted record first half net inflows of $2.5 billion, which represented a 79% growth on prior corresponding period excluding large institutional transition.
According to the firm the strong growth in funds under advice (FUA), which grew 58% from a year ago and stood at $15.8 billion, was driven by both transition opportunities from new and existing adviser relationships as well as organic flows from existing advisers and new business from advisers in key account segment, self-licenced advisers and brokers.
Additionally, transitions from incumbent platforms were continuing and the pipeline remained strong with newt flows from new boutique relationships and the broker channel.
According to HUB24, record net inflows over the first half was helped by advisers with larger client account balances who could afford competitive pricing. The firm said this was a broader trend across the whole industry as advisers reduced client numbers and were choosing to service higher balance clients, leaving ad advice gap for smaller balance clients that were finding it more difficult to source cost effective personal advice.
Also, during the first half of FY20 HUB24 managed to increase its share in platform market from 1.3% to 1.6%, the firm said.
At the same time, the company signed 17 new distribution agreements which included a combination of institutionally-owned licensees and self-licensed advisers and added 39 new portfolios during the December quarter, of which the majority were diversified portfolios as well as fixed interest and equities.
“Our commitment to provide abroad range of international options, resulted in the addition of 19 international exchange traded funds (ETFs) to the menu. The ability to use the managed portfolio structure with an independent external responsible entity continues to be popular with around 60 portfolios now leveraging this structure to deliver their investment management capability,” the firm said in the announcement issued to the Australian Securities Exchange (ASX).