Adviser investment platform Hub24 has revealed its core solution to be launched soon for clients with lower average balances will appeal to SMSFs due to its flexible nature.
The new offer will provide access to a limited investment menu, typically a range of diversified managed portfolios from third-party providers, often at a lower administration fee than the more comprehensive platform.
There has already been significant interest in this type of offer, which is expected to increase the attractiveness of Hub24 as the primary platform of choice for advisers and will be quickly rolled out to several existing licensees.
“Typically you’d say SMSFs have larger balances and, while this offer is for smaller balances, there may be advisers with SMSF clients who want a simple managed account solution as part of their portfolio and they’ll have other assets off-platform, so it is relevant for SMSFs too,” Hub24 managing director Andrew Alcock told selfmanagedsuper.
“If you want a smart, sharp-priced solution which gives you great investment management with direct share ownership, the core offer is very relevant to SMSFs who are looking for that solution to complement their other strategies with their adviser.”
Alcock said SMSF trustees, particularly of newly established funds, can start at the core level, but will still be able to extend into the more comprehensive platform by purchasing other assets and expanding their mix of investments.
“In a way it’s saying you can have this bit of Hub24 at a great price point with access to these investments, but if you want a bigger universe of investments, the price point changes and you can move from one to the other,” he said.
“So as an SMSF you could start at core and decide to extend to international equities that are on the platform and you can move to that level without having to change products – from a seamless product point of view, it’s very appealing.”
He said the flexibility aspect has been a vital component in investment platforms.
“Balances change all the time so if you’ve got a flexible product suite that allows people to pick, mix and integrate, and dial up or dial down, then you’re catering to all of their scenarios when it does happen to change,” he said.
“We’re all about being able to provide an offering that suits all parts of the market so that advisers can go on that journey with their clients.
“So we’re not targeting parts of the SMSF market, but what we can do is target the solution to their particular needs.”
Furthermore, advisers are moving in a direction where they are taking positive action to create better results for their clients, he said.
“SMSF advisers are absolutely thinking about best interests,” he noted.
“I think the trend we’re seeing is absolutely a move away from institutionally based products to client-based solutions.
“We’re seeing that come through with our technology platform and that, in turn, drives us to innovate and build, so that’s good for all of us in the industry – it’s a great outcome for financial services and wealth management in Australia.”