Hub24 signs 8 new licensees, 47 advisers

Hub24 has released its results for Q1 2017-18 in a quarterly business update, showing that its acquisition of financial advice licensee Paragem in 2014 contributed to its growth.

“Since the acquisition by Hub24, Paragem has continued to grow strongly with 10 new financial planning practices and 18 advisers having joined the licensee,” the update said.

“Across the market we are observing an increasing number of advisers becoming self‐licensed or joining more flexible dealer groups as demonstrated by Paragem recruiting five advice practices during 2HFY17.”

Hub24 recorded $6.1 billion in retail funds under administration, up 11 per cent from $5.5 billion at the end of June.

Quarterly net inflows came to $535 million at a growth of 46.2 per cent since the corresponding quarter of the previous year.

The final quarter of 2017 saw Hub24’s company market share of funds under administration grow from 0.62 per cent to 0.72 per cent.

The finalisation of the acquisition of Paragem also saw 4,256,991 HUB ordinary shares issued on 10 October 2017.

According to the update, Paragem “continues to experience increased interest in this segment as practices look to unwind from institutionally owned relationships and access the benefits of the managed accounts”.