The innovative wealth management platform is recognised as Australia’s Best Platform Overall by Investment Trends, and its managed portfolio solution recognised as the Best Platform Managed Accounts Functionality – a title the platform has held close to its chest for the last five years. The Investment Trends Competitive Analysis and Benchmarking report “measures platform functionality across a number of key metrics” and the latest data reveals HUB24, Netwealth and Praemium remain the preferred platforms of the independent financial advisory community.
Less than a decade ago, the industry was dominated by bank platforms – CFS, Macquarie Wrap and Asgard. It’s a very different game now. The new players are innovative and nimble. So much so that the banking platforms are finding it hard to compete, slowly disappearing into the background, replaced by the agile newcomers.
Here are the rankings data from the Investment Trends Competitive Analysis and Benchmarking report:
HUB24 beat Netwealth for top spot, posting strong results in the six assessed categories. The biggest surprise came from Praemium (ASX:PPS), whose recent takeover of Powerwrap has helped it leapfrog both Panorama and Macquarie into third position.
- HUB24 (overall score of 89.0%)
- Netwealth (88.9%)
- Praemium (84.8%)
- BT Panorama (82.4%)
- Macquarie Wrap (76.5%)
HUB24 – Last month the platform posted an underlying net profit of $7.5 million, up 39%, with EBITDA up 41%, to $16.4 million. Total FUM climbed to $31 billion at the end of 1H21. FUM rises to $48 billion with the Xplore Wealth transaction now complete. This includes the platform FUA and portfolio administration and reporting FUA (also known as non-custody in the market).
Praemium – Posted a record 69% increase in FUA to $34.3 billion for the half-year ending 31 December 2020. Its net profit came in at $3 million, up 113% on the H1 FY20. The Australian part of the business saw revenue gain 28%, to $25.4 million, and the inclusion of Powerwrap’s business added an extra $6.9 million.
Netwealth – Posted a net profit of $27.6 million for the 1H, up 34.5%. EBITDA rose 30% to $31.1 million with earnings per share (EPS) rising 34.5% to 11.3¢. Netwealth disclosed FUA of $38.8 billion at the end of the calendar year, up 23%.
The platforms space is becoming a heated contest between HUB24, Netwealth and Praemium. All three have slightly different offerings that appeal to different markets. HUB24 appeals to the “mum and dad” financial planner, Praemium’s niche is with the IFA high-net-worth space and Netwealth is the all-rounder. The platform space will continue to drive innovation but we see M&A activity being the biggest driver of platform performance and funds under administration.