HUB24 has reported a record growth of net inflows from the December quarter which stood at $1.7 billion and represented a 36.7% increase against the previous corresponding period thanks to the continued industry trend towards specialist platforms and managed portfolios.
The firm’s custodian platform funds under administration (FUA) amounted to $22 billion at the end of December, representing a growth of a 38.7%, while the total FUA stood at $31 billion and included $9.3 billion of non-custodial FUA.
HUB24 said that with completion of the acquisition of the Ord Minnett PARS business, it would see further growth opportunities on diversifying into non-custody administration.
The growth of custodial platform FUA for the quarter, which increased by $3 billion, included positive market movement of $1.2 billion.
While the average monthly net inflows to date of $514 million were up from $412 million for FY20 and represented a 25% growth, the strong net inflows were seen across all client segments including larger national accounts and the broker segment, as well from boutiques and self-licensed advisers.
“HUB24’s new business pipeline continues to growth with 24 new licensee agreements signed during the December quarter, with both large boutique licensees and self-licensed practices,” HUB24 said in an announcement to the Australian Securities Exchange (ASX).
“Additionally, following the announcement in December, HUB24 has entered into a binding heads of agreement with IOOF to develop a range of solutions, including an investment and superannuation wrap platforms utilising HIUB24’s custody, administration and technology capabilities, and a suite of managed portfolios.”
HUB24 also said that the proposed acquisition of investment platform provider Xplore Wealth, if completed, would be expected to add a considerable scale with a further $15 billion in FUA split between $8 billion in custodial platform FUA and $6 billion in non-custodial FUA.
On top of that, during the quarter, it added 18 new diversified managed portfolios to its menu, including three new sustainable managed portfolios which would cater for increasing client demand foe ethical investment options, as well as 12 new international exchange traded funds (ETFs).