OneVue to elevate advice utility

02-Feb-2015

By Krystine Lumanta

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Listed platform and fund services provider OneVue will look to invest in and focus on the advice-based functions of its offering, following a record quarterly result in retail funds under administration (FUA).

The firm was working on multiple initiatives, OneVue chief financial officer Brett Marsh said.

“We will be looking to invest this year in the adviser platform and bring some of the benefits that we’ve created within ‘digital direct’ [the firm’s platform for self-directed investors], and transpose that into the advice-based offering,” Marsh told financialobserver.

“From an initial point of view, that is significant for us.

“On the funds services side, we’ve made our investment in mFund and Calastone, and we’ll be looking to leverage off that with our existing clients and in pursuing new clients.”

On Friday, OneVue reported retail FUA reached $2.815 billion for the December 2014 quarter.

Retail net funds flow was $97 million for the quarter, compared to $111.6 million the previous quarter, following a one-off fund restructure.

“We’re pleased that the last two quarters have been the strongest that we’ve ever seen and it’s coming from a diversified client base, not just one part [of the business],” Marsh said.

“We also had some growth coming through from the new digital direct service [with brightday created as a badge for subscribers of the Eureka Report], so we’re tracking nicely for where we’re expecting to be on a full-year basis with our original estimates.”

Further, the business would continue to look at both the revenue and expense synergies from all its acquisitions: MAP Funds Management, SMSF Managers and Select Investment Partners, Marsh said, “but particularly Select, as it’s the most recent”.

“Reflecting back on 2014, the year was an incredibly big one for us, with the three key acquisitions on top of the initial public offering and capital raising.

“In terms of what we set out in the prospectus, we were looking to turn our first positive recurring earnings before interest, taxes, depreciation and amortisation throughout the year, and that was coming off a negative base.

“So to almost get to that zero figure was what we were expecting for the quarter and shows that we are tracking the way we wanted to.”

He said the benefits from the Select acquisition would occur progressively and were expected to be reflected in the next two quarterly reports.

“We still have some compliance integration to go with Select, so we’ve probably still got another quarter to go until it’s bedded down,” he said.

“We’re running through the responsible entities and are in the process of dealing with the regulators at the moment.”

OneVue listed on the ASX on 25 July.

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