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Hub24 posts record FUA results

Adviser investment platform Hub24 has reported its funds under administration (FUA) reached $9.1 billion for the September quarter, up 50.5 per cent on September 2017.

Hub24 also achieved net inflows of $638 million for the quarter, up 19.3 per cent on the prior corresponding period, with gross inflows of $935 million.

The quarterly net inflows result was the highest on record for a first quarter for the company, with 74 per cent received into its retail products and 26 per cent received into the white-label versions of the platform.

Strong flows from existing advisers as well as initial flows from new relationships contributed to the result, it said.

During the quarter, 92 new advisers were introduced to the platform, while 18 new licensee agreements were signed, underpinning its strong new business pipeline.

The rise in advisers and agreements was also supported by an increased focus on Australian financial services licensees and advisers to diversify their platform solutions to include contemporary and cost-effective platforms, such as Hub24.

The business also completed its rollout of a customised offer for Fitzpatricks Private Wealth during the quarter, resulting in strong adviser interest and early adoption across Fitzpatricks advisers.

In addition, the transition of $700 million from the current Fitzpatricks managed discretionary account (MDA) is progressing well and on track for delivery before the end of the calendar year, Hub24 said.

Hub24 managing director Andrew Alcock said the platform provider has again enhanced its ability to support the different needs of licensees, advisers and their clients across a broad range of legal and product structures.

The company now offers tailored portfolios for MDA providers that choose to operate their MDA within Hub24’s investor-directed portfolio service and superannuation products.

Several managed investment schemes have already been launched to the market by two boutique licensees, with initial flows being received onto the platform.

Hub24 also added 39 portfolios to the investment menu in the September quarter, with 22 diversified options and 17 sector-specific portfolios covering a broad range of asset classes.

A number of these are customised portfolios for licensees that recently began using the platform.

In August, Hub24 announced the launch of its new core investment solution, providing advisers and their clients the option of a select range of investments coupled with lower minimum administration fees and no account-keeping fee.

Twelve licensees are actively using the core offer, two of which have their own tailored version in the market, with a third licensee to follow this quarter.

Also in August, Hub24 announced a partnership with Challenger to provide its annuities on the platform, leveraging the platform provider’s ConnectHub technology.

Joint development is underway and the teams of both businesses expect the solution to be available during the second half of the 2019 financial year.

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