Investor First

Hub24 ready for new regulatory environment

DIVERSIFIED FINANCIALS

Investorfirst (INQ)

Investorfirst (INQ) is a diversified financial company providing investors, advisers and brokers with access, facilitation, administration and other services. We believe the key asset in the portfolio is Hub24, which is a next-generation Investment Platform, with leading Separately Managed Account (SMA) technology. Our Buy recommendation and $0.19 price target remains unchanged.

Hub24 granted ASIC approval for IDPS structure. In an effort to find the most appropriate model for the new world post the Future Of Financial Advice (FOFA) reforms, INQ has sought and won approval from ASIC to change the legal structure of the Hub24 Investment Platform. Essentially, Hub24 is moving from a Managed Discretionary Account (MDA) to an Investor Director Portfolio Services (IDPS) structure. We believe this is a good move as it is more regulatory friendly, has lower operating risk and is more appealing to advisers. Further, advisers are likely to be more familiar with the IDPS structure as it is the form many of the large wrap platforms use today.

Gaining momentum with two new adviser groups added. INQ recently announced the addition of two further dealer groups which have included Hub24 to the approved list of platforms available for their advisers to use. The two additions include Spectrum Wealth Advisers and Premium Wealth Management. We understand Spectrum has over 100 advisers and Premium over 20 member firms (over $2.5 billion in Funds Under Advice).

INQ: Recommendation:  Buy                   Price Target: $0.19                   Previous Close: $0.099

You can download the PDF here

Disclaimer: Southern Cross Equities acted as lead manager in the placement of 166.7m shares raising $12.5m at $0.075 a share. Southern Cross Equities received a cash fee and 12.5m options with a strike price of $0.12.

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This information is not to be construed as advice, you should read the Investorfirst Securities Ltd Financial Services Guide and consult a licensed adviser before making any investment decision.

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