Positive market performance coupled with the ongoing exodus of advisers from the large financial institutions have helped gain momentum for Powerwrap which, in turn, has reported a record $8.1 billion in funds under administration (FUA) at the end of the June quarter.
The strong result was also a result of new inflows during the quarter and a successful listing on the Australian Securities Exchange (ASX) following oversubscribed public raising which was $550 million above the prospectus forecast of $7.5 billion, the firm said.
Powerwrap, whose model aimed to target the high net worth (HNW) model, also benefitted from the post-Royal Commission’s industry trends which saw further breakaway groups seek independent platform providers.
During the quarter the company managed to sign four new service agreements with advice groups while, at the same time, its largest client, Escala Partners, continued to expand its high net worth operations nationally, leveraging the Powerwrap platform.
Both new groups and Escala also helped drive net inflows for the quarter which amounted to $199 million.
Following this, Powerwrap’s product enhancements were based around its HNW model, where alternative assets were a key part of the investor portfolios.
The firm said in a statement issued to the ASX that it administered the broadest number of these assets in the Australian platform market.
“We are focused on development of our proprietary front-end user interface, ‘Hive’, and really pleased to report that the migration of advisers to Hive is well underway.
“The Service Desk has been incorporated into the adviser portal ensuring all adviser interactions are automatically routed through the Hive,” the firm said.
Following its listing on the ASX in May, Powerwrap had a strong balance sheet with $20 million in cash and no debt and remained focused on the HNW market, with a strong pipeline of potential new business, which would include targeting breakaway groups, it said.
