Following its ASX listing at the beginning of the quarter, Powerwrap has reported a record funds under administration with a record $8.1 billion.
Escala and a new Tickr client were key drivers of net flows, with Sempre joining the Tickr service, a trend that Powerwrap expects to continue.
“Powerwrap expects this industry trend to continue in the wake of the banking royal commission, with further breakaway groups likely to seek independent platform support,” a spokesperson said.
A spokesperson told Investor Daily that platforms like Powerwrap would continue to win big as they could offer access to a broader range of assets.
“Broad choice could lead to better investment outcomes for investors," a spokesperson said.
“The use of platforms that are not owned by a big bank is of increasing interest to advisers because they want to distance themselves from any perception that they are vertically integrated and not agnostic when it comes to asset selection for their clients.”
Powerwrap listed on the ASX on 23 May after a successful initial public offering and as a result can announce a balance sheet of $20 million in cash and no debt.
Powerwrap signed four new service agreements with advice groups as the ongoing exodus from aligned advisers sees more users for the platform.
The platform confirmed that it had renegotiated its margin on its cash operating hubs as a result of the lower interest rate environment.
A spokesperson told Investor Daily that Powerwrap continued to offer a competitive product even in this low-rate environment.
“We won’t speculate on where interest rates are heading, however we believe we have a competitive product that provides excellent service even in a low interest rate environment,” a spokesperson said.
It also confirmed that investors receive interest for cash operating accounts, which are used for the payment of fees, receipt of dividend payments and are the accounts from which funds are drawn from or transferred into for any transactions made by the investor.
“This is not a savings account nor an investment strategy, investors do receive a competitive rate of interest on this account,” said a spokesperson.
Over the next 12 months Powerwrap is focused on developing its front-end user interface Hive and has already migrated many of its advisers onto the interface.
It will also focus on its high-net-worth model after its bond execution service doubled in size over the last six months and demand for alternative assets continues to grow.
Powerwrap is the first platform in the country to offer funds managed by Pacific Equity Partners and alternative assets will be a key focus of the platform going forward.