Royal Commission boosts platform provider

Another platform provider believes it's well positioned after the Royal Commission.

Releasing its half-yearly results to the ASX today, HUB24 said it expects to benefit from Kenneth Hayne's suite of recommendations for improving the wealth management industry, specifically the removal of grandfathered commissions.

The firm is the latest platform provider to trumpet its positive outlook after the Royal Commission. Earlier this month, competitor Netwealth said it expected some of the $189 billion in funds under administration subject to grandfathered commissions would flow in its direction in the wake of Hayne's recommendation.

HUB24's platform now administers $11 billion, having recently set a new net funds flow record of $2.1 billion. The result is up 95% on last year's first half inflow result. At 31 December 2018 the platform was administering about one billion less.

A $3.1 million after-tax profit was also achieved in the half, up 46% on the prior corresponding period.

The firm expects it will benefit from the potential opening of institutional approved products lists and the need for ongoing annual client engagement from advisers, agreeing with Netwealth's assertion that more money would flow away from institutional platforms toward "modern" investment platforms.

The results have given HUB24 managing director Andrew Alcock reason to be optimistic about the platform provider's second half performance.

"We have maintained our position as the fastest growing platform provider in the market," Alcock said.

"Our constant innovation and ongoing investment to capture market share is resulting in momentum in the second half with strong net inflows and continued conversion of HUB24's growing opportunity pipeline."

OneVue Holdings also released its first half results today, with net inflows of around $200 million, and $4.39 billion in funds under administration.

The firm noted the positive influence of "structural disruption" in driving momentum despite market declines in the last quarter of 2018. After posting a net profit of around $700,000, managing director Connie Mckeage said the half was "extremely busy and transformative" for the firm.

She flagged the sale of OneVue's superannuation trustee to Sargon Capital late last year for $45 million as an "excellent outcome" for shareholders.

"What is also particularly pleasing is that the sales process has not distracted management from delivering on important operational and sales milestones across the business, confirmed by the strong revenue result of the continuing businesses," she said.

Read more: Royal CommissionKenneth HayneNetwealthAndrew AlcockOneVue HoldingsASXConnie MckeageSargon Capital
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