Highlights
· Record quarterly Net inflows [1] to HUB24’s investment and superannuation platform of $273m – up 131% on pcp[2];
· Funds Under Administration (FUA) at 30 June 2015 of $1.7bn – up 100% on last year;
· Winner of Value for Money and Ease of Use platform awards in the Investment Trends 2015 Planner Technology Report[3];
· Heads of agreement signed for new independent dealer group with white label launch expected in August;
· Launch of new service for self-directed investors with $28m transferred to HUB24 effective 1 July 2015 (not included in the end of quarter FUA).
Net flows, FUA and Financial Position
HUB24 has achieved platform revenue growth of 18% over the prior quarter (unaudited) compared with growth in FUA of 14%. Monthly operating EBITDA[4] (unaudited) has been positive throughout the quarter and has increased steadily since the company announced its maiden positive Operating EBITDA quarter in April. Full details will be provided in the company’s 2015 annual report.
A record increase in net inflows[1] and gross inflows for the June quarter was driven equally by HUB24’s retail platform offerings and licensee white label products. Net inflows for the period of $273m included a record $130m in June 2015 and half of net inflows for the quarter are from new advisers and licensees introduced to the platform over the past 18 months (inclusive of Paragem). Flows from longer established adviser relationships remain strong and advisers using the platform have increased by 35 during the quarter.
Total FUA as at 30 June 2015 was $1.7bn, an increase of 100% from 30 June 2014 and 14% for the quarter despite negative market returns of 7.4% over the period.
July has begun strongly with the transfer of a self-directed investor book of $28m in FUA, which was previously announced, now having been completed. The company also continues to have a strong pipeline of new business opportunities including a newly signed heads of agreement with a large independent licensee. Further details for this new licensee will be announced closer to product launch which is expected in August 2015.
Platform statistics* | JUN ‘14 | SEPT ‘14 | DEC ‘14 | MAR ‘15 | JUN ‘15 | Growth** |
FUA – total | $854m | $1,031m | $1,251m | $1,493m | $1,704m | 99.5% |
Net Fund Inflows (Qtr) | $118m | $171m | $190m | $163m | $273m | 131.4% |
Gross inflows (Qtr) | $167m | $199m | $226m | $204m | $325m | 94.6% |
Number of Advisers | 345 | 383 | 420 | 449 | 484 | 40.3% |
* Statistics are for each quarter, have been rounded and are not audited. Inflows do not include market movement.
** Growth is the percentage increase on prior year corresponding quarter
Industry recognition
The Investment Trends 2015 Planner Technology Report examines areas including adviser satisfaction with current platform offerings and strengths and weaknesses of each platform. The data is derived from a survey of over 890 financial planners. HUB24 achieved outstanding results, including:
- 2nd place for overall: Platform satisfaction
- Award Winner – Ease of Use: Platform
- Award Winner – Value for Money: Platform
In commenting on the results Andrew Alcock, Managing Director of HUB24, said “these results validate our ongoing investment in platform development and we are very proud to perform so well against established and traditional market leaders. Along with these awards we also achieved the highest ratings for new application processing and administration accuracy”.
“We are in the unique position of providing both market leading managed account functionality and market leading wrap functionality within the one platform and having an exceptional user interface that supports adviser productivity and client engagement. The recent update of our interfaces and the launch of SupportHUB have improved adviser and client service levels at the same time as providing further operational scale benefits during this period of rapid growth”.
1. Net Inflows represents gross inflows less outflows during the period and does not include market movement.
2. Pcp is prior corresponding period of quarter ending June 2014.
3. Results from Investment Trends 2015 Planner Technology Report, based on an online survey of over 890 financial planners.
4. Operating EBITDA (from continuing operations) represents revenue less operating expenses, it excludes growth investment expenses and other significant items.
Issued by HUB24 Limited (ASX: HUB) on 7 July 2015.
Media enquiries:
Andrew Alcock
Managing Director
HUB24 Limited
Telephone: +61 2 8274 6000