$1.4b inflows in Q1 for HUB24
HUB24 has experienced inflows of $1.4 billion during the March quarter thanks to strong support from large national licensee and broker channels, and new business from boutiques and self-licensed advisers.
In an announcement to the Australian Securities Exchange (ASX), HUB24 said the transition pipeline remained strong, with transitions from incumbent platforms and brokers continuing during the quarter.
During Q1, 115 new advisers began using the HUB24 platform and 27 new licensee agreements were signed.
“Whilst net inflows have continued since the end of the quarter and our new business pipeline remains strong, many advisers are focussed on supporting existing clients and adopting business models for the current environment, as such we expect net inflows to soften in the June quarter,” it said.
“As the COVID-19 pandemic continues to impact the market it is difficult to anticipate outcomes as all stakeholders respond to the challenging conditions.”
On funds under administration (FUA), HUB24 said for the quarter it decreased by $2.1 billion to $15.1 billion, down 13.1% since 31 December, 2019 as a result of negative market movement.
“FUA movements affect our revenue and the market movement impact experienced to date is expected to negatively impact administration fees and therefore earnings for FY20," it said.
“Revenue will also be negatively impacted by the reduction in the official cash rate by the Reserve Bank of Australia announced on 17 March, 2020. However, increasing transactional revenue, changes in portfolio asset composition, and the effect of tiered administration fees each act to soften this revenue and earnings impact.”
Source: HUB24
HUB24 managing director, Andrew Alcock, said financial advice is more important than ever.
“HUB24 is in a strong position and we have mobilised rapidly to continue to deliver for our customers without interruption,” he said.
“The smart features and flexibility of our platform solution is enabling advisers and their clients to adapt quickly to the current conditions.”
Recommended for you
Sequoia Financial Group has declined by five financial advisers in the past week, four of whom have opened up a new AFSL, according to Wealth Data.
Insignia Financial chief executive Scott Hartley has detailed whether the firm will be selecting an exclusive bidder for the second phase of due diligence as it awaits revised bids from three private equity players.
Insignia Financial has reported a statutory net loss after tax of $17 million in its first half results, although the firm has noted cost optimisation means this is an improvement from a $50 million loss last year.
With alternative funds being described as “impossible” for fund managers to target towards advisers without the support of BDMs for education, Money Management explores the evolving nature of the distribution role.
