Fiducian Group (ASX: FID) continues FUMAA growth, focuses on new external IFA market products - Kalkine Media

Highlights

• Fiducian label businesses of financial planning, funds management and platform administration delivered revenue as per expectations in FY23.
• Funds under advice reached AU$4.6 billion and FUMAA stood at AU$12.3 billion at June end.
• FUMAA reached AU$12.4 billion at September end.
• Focus is on generating revenue from recently introduced new products for the external IFA market - Auxilium and badged products.

ASX-listed specialist financial services provider Fiducian Group Limited (ASX: FID) is a profit generating company with 27 years of operation. Over the years, the company has introduced new features and functionalities to its financial planning software – FORCe, and its platform administration system – Fastrack, which also administers Auxilium, a recently introduced new product for the external independent financial adviser (IFA) market.

The new products for the external IFA market have delivered significant performance, as in a short time, the company has reached around AU$210 million under administration in Auxilium and badged products. The company expects these products to generate significant revenue and become a core part of the business.

During the year ended 30 June 2023, the core Fiducian label businesses of financial planning, funds management and platform administration registered operational efficiencies and delivered revenue as per the expectation.

In this backdrop, let’s look at the company’s performance in the financial year 2023.

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During the reported period, the funds under advice reached AU$4.6 billion, compared to AU$4.4 billion in the previous corresponding period, and net inflows received from aligned advisers were AU$265 million. The company expects a high level of client services and compliance from its financial planning network.

Badged platforms and Auxilium have been added to the Fiducian labelled platforms. As of 30 June 2023, funds under administration were AU$3.27 billion. Net inflows and market growth underpinned the growth in net funds under administration.

FUMAA grows at September end

In three-month period ended 30 September 2023, net inflows to the core Fiducian platform stood at AU$45 million, up from AU$42 million in the year-ago period. FUMAA reached AU$12.4 billion at September 2023 end, up from AU$11.0 billion in the same period a year ago.

Outlook

For the period, the company registered funds under management advice and administration (FUMAA) of around AU$12.3 billion, compared to AU$10.9 billion in the previous year, driven by an upward trend of share markets between October 2022 and January 2023. The performance was backed by inflows to its funds and platforms.

In the South Australian market, the company witnessed a significant rate of improvement, and with its performance in the past few months, FID expects to become a major contributor to new funds flow in 2023-24.

In the next financial year, the expanded network of financial advisers is anticipated to deliver fund flows exceeding the current financial year numbers.

Fiducian is focused on expanding its revenue generation sources through Auxilium and badged products. Moreover, the company seeks earnings per share (EPS) accretive acquisitions of client bases and franchise network growth.

FID shares traded at AU$5.510 midday on 20 November 2023.