Platform HUB24 has unveiled a new solution, which will be available from November, to allow the platform to meet the needs of its lower balance advised clients.
In a quarterly update, the firm said its new Discover offer, which will complement its existing Core and Choice offering, will be available from November.
The idea behind this is to offer a solution for lower balance advised clients.
“This includes early stage wealth accumulators and later stage retirees with less complex needs. Discover, designed in conjunction with portfolio managers provides a streamlined selection of managed portfolios in a cost effective platform and investment solution and extends HUB24’s reach to this part of the market,” it said.
“This new option, which aims to strengthen HUB24’s competitive position and support further growth, will be available in November and further details will be provided.”
HUB24’s managing director, Andrew Alcock, previously flagged the potential launch of a lower balance product in August which he said could possibly be taken mass market at a later date.
Last year, APRA’s Retirement Income Covenant called for financial services providers to improve their development of retirement income products as more people approached retirement.
Looking at the firm’s financial results, total FUA was $82 billion at the end of September, up from $68 billion a year ago.
This is divided between $65 billion in platform FUA and $17.6 billion in portfolio, administration and reporting services (PARS) FUA.
However, net inflows to the platform declined by 6.3 per cent from $2.9 billion to $2.7 billion over the year.
Platform FUA is divided between 86 per cent from retail and 14 per cent from institutional clients, unchanged from FY23.
The number of advisers using the platform is 4,026, up 10 per cent on the prior corresponding period, and it said its market share has risen to 6.3 per cent.
“HUB24 has had a strong start to FY24 with net inflows of $2.8 billion for the quarter, up 34.7 per cent on the previous quarter and broadly in line with the prior corresponding period (down 6.3 per cent pcp). This is an improvement over previous quarters and is pleasing given the ongoing macroeconomic environment.
“HUB24’s opportunity pipeline is also strengthening and during the quarter 41 new distribution agreements were signed.
“The previously announced EQT transition of approximately $4 billion of FUA is continuing to progress with integration builds between EQT chosen systems well underway. The first transition is now planned to be completed in Q3 FY23.”
