HUB24 Limited (HUB) Earnings Call Transcript & Summary

Good morning, everyone. My name is Bruce Higgins. I'm Chairman of HUB24, and welcome to the Analyst and Investor Day. I'd like to begin by acknowledging the Gadigal people of the Eora Nation on whose land we meet today. I pay my respects to elders past, present and also to the Aboriginal and Torres Strait Islander people joining us today. On behalf of the HUB24 Board and the executive team, some of whom you will be hearing from shortly, I'm pleased to welcome those here in the room today and also online to our inaugural Analyst and Investors Day. The HUB24 Board and executive team are working together to build a sustainable and successful business with a shared purpose to empower better financial futures for more Australians. HUB24 has built a solid market leadership position by focusing on delivering innovative products and services that create efficiency and value for their customers. And the business is now well positioned to lead the wealth industry as the best provider of platform, technology and data solutions. As you all know, the company has experienced a period of exponential growth and completed a series of strategic acquisitions, which have positioned HUB24 to take advantage of emerging market trends and further growth opportunities. As part of our commitment to keeping analysts and shareholders updated, Andrew, our Managing Director, and the team, would like to take the opportunity today to talk you through the business strategy and give you a deeper understanding of how the business is positioned for the future. I'd like to thank the team at Barrenjoey for hosting HUB24 today, and also express my gratitude to you all for your continuing support. I'd like to hand over to Andrew and the executive team to take you through the presentation. Andrew?

Thank you, Bruce, and good morning, everyone. Thank you for joining us. For those of you in person coming out on a cold morning, and to Sydney everyone on line, it's great to be here for our Inaugural Investor Strategy Day. I thank of your support to analysts, shareholders, institutional investors as well. It's great to have you here. And we hope that you get a lot out of this morning. Our objective is to spend some time talking a bit more about HUB, a bit more of a deeper dive on some of our strategies in terms of the platform of the future, the Class acquisition and how we see the market moving ahead. So you'll get a look at that in a bit more detail today. It's plenty of time for questions and answers. We've got members of the team here today, which some of you haven't met, which we're -- great for them to present to you as well. So welcome again. Looking forward to the day and interest of the team to you. I'm going to start with, I'll push the right button, a bit about what's in our DNA, and you hear me talk about this quite often in terms of empowering better financial futures together. For too long, this industry has built products around product and the need of product providers as opposed to around customers. If you think about the regulations and what's going on right now with regulations in this industry with the future of advice -- inquiry that's going on with Michelle Levy and the fact that we're looking at a nation that just can't get advice for customers. We've had an industry that's built regulations around products. In fact, in some cases, build products around vertical integration. And what's very unique to our DNA and has been for some time now and how we've led in this marketplace in our belief that if you build great products for customers to make customer needs, you build a sustainable, successful business and you'll see growth. And that's what empowering better financial futures together is about for us. It's about working with choice, open architecture, best-of-breed products, bringing the best to the client and working across the value chain with financial advisers, customers, investment managers and other providers, technology providers to build a sustainable business model that gives great results for customers. It's in our DNA. It's why we acquire companies. It's about our strategy. And you will see today how that lines up in terms of the approach HUB24 has moving forward. So it is about doing stuff together and cooperating across an industry. It's also about supporting this industry to rebuild itself. And there's a massive opportunity that has been in play for some years now, where we've been riding a wave or ahead of the curve thinking about what's going on in this industry and how can we lead with product design and great customer service and the acquisitions and the strategy we've got about moving forward again in the future and continuing to see leadership across this industry. In terms of the overview of HUB24 today, just a few things on the slide there, and you've seen this before. I wanted to talk a little bit more about Class, which we acquired in February earlier this year. So Class is the leading market provider of the establishment, management and administration of wealth vehicles. Jason Entwistle, the interim CEO of Class, will be speaking to you a little bit later about what's happening in Class and how it plays into the HUB24 strategy. But Class is a market leader in SMSF administration software being Class Super, about 30% of that market share and has some other products, Class Trust and Class Portfolio that we intend to leverage as well moving ahead. And the NowInfinity Documents business, which is about documents, tax portals and working with ASIC and the ATO, accountants and solicitors to put in place the right documents and meet the compliance obligations for wealth vehicles being trusted and self-managed super funds. So Class is on the right-hand side of the slide there, the newest addition to the HUB24 footprint. Obviously, on the left-hand side, there's our traditional custodial platform business and our noncustodial PARS, portfolio admin reporting service business, combined, there's $68.3 billion of funds under administration as at 31 March. All of you know that's changing as we speak. It's changing every day with what's going on in the marketplaces, but it's great to be representing a business that's got great tailwinds and fundamentals for growth as well. So in the Custodial Platform business, $51 billion of FUA as at 31 March and $22 billion -- or $22.4 billion managed portfolios. In the middle column on the slide, HUBconnect is a data and services or software services business. That includes the Agility Connect or Agility business that is servicing stockbrokers, customer management, operational support and databases for stockbrokers as well as our new HUBconnect Licensee product, which is providing insights to financial services licensees, advice licensees, and shortly, to advice practices as well. And Darren Stevens, our Chief Product Officer, will talk a bit more about what we're doing in that space and how that's working for us as well. In terms of first half '22, we've got the EBITDA figure there for the first half as wellbeing $29.7 million, up 80% on PCP. In terms of our trajectory, many of you will be aware, we've been constantly delivering on our growth strategy over a number of years. You can see the funds under administration there, first half '19 all the way through the first half '22, now including the portfolio, admin stream as well, considerable growth and consistent reliable growth through execution of strategy and operational excellence. And on the right-hand side, you can see our group revenue to CAGR of 41% over the last 5 years, an underlying EBITDA CAGR of 63%. That's to the halves, and you can see the growth there as well. We've got a table beneath that, but we haven't done a lot on our current financial stats. Most people are aware of those, they're publicly available. But the table at the bottom of that slide just shows you the trend in terms of revenue up from FY '17, FY '21 and in the first half of '22. And you can see that the trend there is very positive and the PCP change as well and the EBITDA trend as well. Message for us is we've been consistently delivering on growth, delivering value for shareholders, and that's certainly our intention to keep doing that and keep executing on strategy and delighting our customers. Pleased to say today that, once again, we are Australia's fastest-growing platform pound-for-pound. So in terms of our share of new business over our current market share, in that ratio, we hold position #1. It does move around, but we're back at #1 at the moment. Our market share has gone, and these are stats as at December 31 for Strategic Insights. Our market share in 12 months to 31 December has gone from 2.5% to 4.9%. So just under double. There is acquisitions in there, of course, but great organic growth as well. And we are now the seventh largest platform in Australia, up from 9th place 12 months before as well. On the growth -- on the right-hand side of that slide, we've got -- we ranked second for annual net inflows, again for that 12-month period and our platform through a CAGR is 65% per annum in terms of growth rates. So growing very rapidly and certainly implementing strategies to continue to do that. But we'd look back at why the HUB journey has worked so far and what we're thinking, what we're doing in terms of how we continue to lead and excel. We quite often say leading change. It's been one of our taglines and our marketing campaign lines. I think this industry has been fragmenting, changing, disrupting for a number of years now. And so if you think about HUB's origin and what's been going in the financial services industry, this slide is about showing you how we've been playing to the trend or leading a trend and actually extending our lead as the market moves on. And hopefully, through today, when we talk about our strategies in more detail, you'll be able to see that we're thinking about what's coming in the next wave and how we continue to lead in that trend and rather becoming a leader in the business, extending our lead and extending our competitive advantage. So if we look back at 2010 to 2015. At that point in time, institutions dominated platform inflows. Both reforms came in, in 2012, 2013. And that was the time when rebates were challenged and cross-subsidization in revenue streams was challenged and had to change from regulatory change. HUB24 was launched around about 2010, 2012, Super was launched with innovative managed portfolio functionality. And so we launched at the time, we started growing quite rapidly through that period before and just after FOFA when the regulations changed. And that the market was turned upside down in terms of cross-subsidization and adviser shift started to occur. In fact, launching managed portfolio has allowed us to challenge some of the value chain that was occurring with fund managers and licensees and those who are doing portfolio construction, but being paid for it by rebates or other means, we're able to actually get paid for their services in a different way. At that point in time, in FY '15, we had an EBITDA of negative $4.4 million. So that's a loss of $4.4 million in terms of EBITDA at the end of '15, and $1.7 billion of FUA, having -- when I started the business in FY '13, having had $350 million. So probably 5x growth in that 2-year period, but still loss making at the end of that period. The trend continues. And in the period from 2016 to 2019, managed portfolio has really started to take off across the market. And Craig Lawrenson, our COO, will talk a bit more about the trends for managed portfolios and what's happening and how the market is seeing their growth moving forward. We had the Royal Commission established. We all know about that. We saw the start of what we might call Wexit, or wealth exit by the banks. The INSTOW started to exit the industry. You have the SPPs, or specialist platforms, beginning to dominate net flows, and you know the story there. In fact, the net flows that we're achieving in the marketplace haven't been achieved for decades and in that sense by institution. So we're in uncharted territories about how the net flows are playing for ourselves and our peers in the specialist platform place. Again, because we've designed products around customers, we've broken away from a vertically integrated bottle. We're building a sustainable business. And we've seen the growth in the underlying licensee segment, i.e., the move of advisers away from aligned licensees, banks to institutions through independently owned or unaligned licensees, and that's reached peak and now settling it down. And so that's 2016, 2019. The HUB journey over that time, we continued to enhance our solutions. We acquired Agility Applications, which is the cornerstone of our HUBconnect technology today. We continue to be recognized as a leading platform provider of managed portfolios and took many enhancements to the marketplace, and we established our Innovation Lab. At the end of 2019, we had an underlying EBITDA of $14.8 million, so certainly profitable, and $12.9 billion of FUA in that 4-year, 5-year period from the end of '15 today. Fast forward to where we are today and the future. There's increasing advice tech solutions in the marketplace. It's about integrating technology. There's a proliferation of solutions out there that need to communicate and talk with data. There's a demand for clients for a real single view of wealth as opposed to a platform view or our off-platform view. How can I bring this together? How can I see my full picture? It might be my SMSF. It might be my property. It might be my platform investments. There is an increasing demand for high net wealth solutions. Certainly, as Australia's population ages, the social system sees people want to be self-retired and advisers coalesce or advisers move into that space as well. And there's the convergence of advisory models, stockbroking and financial planning has been converging for a number of years in terms of businesses doing both and accounting as well. We're seeing more and more financial planning businesses with accounting arms, working together. That's a trend that's going on in the marketplace. But the HUB24 journey over that period of time, our market leadership has been extended. Our overall platform is winning awards as well as managed portfolio leadership. We've continued to build strong relationships across the marketplace across all types of licenses, self-licensed through to key national accounts. We've launched HUBConnect off the back of our think tank deal to some of those data and connectivity issues and the trends that are there. We hired Xplore and the Ord Minnett PARS business to take us in another direction with noncustody admin and also take us towards the climate wealth space, so all depends as we talked about our private labels, acquired class, which you'll hear more about today. We're now building data as-a-service products off the back of the Agility heritage and moving forward in the HUBConnect's future as well. And we're designing products and services to support the convergence of the professional model of the advisory industry. In terms of where we are at FY '22, our $68.3 billion of FUA, when we go back to where we were at the end of FY '15, that was $1.7 billion to $68 billion. Our underlying EBITDA of just under $30 million for the first half of '22 versus full year EBITDA loss of $4.4 million in '15. So the story for us is there's been a change in the marketplace, and we've been following that change and leading that change and investing for that change. And hopefully, today, you'll hear more about our strategy, how we're investing for the future. Absolutely, our objective is to spend more time with shareholders talking about platform of the future, data-as-a-service, the 3 strategic pillars we've got. Okay. Speaking of which, after strategic comments, and I'll sum it up quite easily. The first one is about delivering customer value and growth with our core platform business, continuing to take our market proposition and evolve that for customer needs and extend that market leadership. So that's one of our core plans, and you can see that with great organic growth coming through. Continuing to build a platform of the future. So as I said earlier, the change in the trends are there, the single view of world for customers. We see the world differently in terms of where platforms will go. We think about data products as well as financial products. We think about those living together in ecosystem. Jason Entwistle will talk more about that as well as Darren Stevens on that pathway as to how we get there. That platform of the future for us is about a single view of wealth for customers, seamless integration between different administration types or legal structures, custody, noncustody, product solutions that improve retirement outcomes as well for consumers and integrated customer experience. And we're doing that in an evolutionary or incremental way, and you'll see that the acquisitions we've made and the steps we're taking to release products are building up to that platform for the future. So the disruptor continues to disrupt and doesn't become disruptive. So we continue to lead the market. And the third strategy there is about collaborating with the wealth industry about its future, building and using data to help empower licensees, to make things more efficient to lower the cost and enable greater access to advice and working with industry participants. That's really about HUBconnect which Darren will talk about as well as some of the investments there. Moving on our markets. I won't spend too much time on this. Everyone's aware about the 4.9% of the platform market as the platform market is currently defined by strategic insights. We think that will be challenged over time. Certainly, the managed account market as well is growing very rapidly. We have 12% there, but we are the market leader. And these stats are old. These stats get updated roughly once a year. In the PARS market, 12% there was a lot of group for growth and the SMSF market having 30% of the SMSF account market for software. But our goal there with Class is actually expand and grow that market as well as grow our share of that market as well. So we're in attractive growth markets. Australia has mandated superannuation, and we think the technology revolution is continuing to expand the contestable market, and our strategy [ is to just certainly ] leverage that. A couple more from me, and then I'll hand over to the team. In terms of our people, HUB today has 700 staff. That's roughly 500 for the HUB24 business and 200 for the Class acquisition. We're very focused on attracting, retaining and developing talented people and building a strong culture. Our values on the right-hand side of the slide there in terms of integrity, collaboration, client focus, excellence, passion and innovation and there's certainly some up the way we run our business and what's in our DNA. We have a very, very passionate team who want to innovate, who wanted to deliver solutions that work for the customer. In terms of our employee engagement as well, very, very highly satisfied workforce with a score of 4.04 out of 5, which is high compared to benchmarks across this industry and other businesses. Some of the leading points there, staff are very satisfied with our communications and well-being and our flexible work environment. We work very hard to look after our people and create a diverse and talented workplace and inclusive workplace as well as making sure it's a flexible environment as well. And I think a testament to that is during the pandemic, our service levels didn't skip a beat. In fact, we won awards for service during what is a very difficult time, whilst we've also grown and hired hundreds of people. Our operational execution and the service testament to customers being able to execute on strategy, deliver great service as well as grow our business is really a testament to our team and the great people and the great team here today that you'll hear from as well. So today with me is Kitrina Shanahan, our CFO. Kitrina will talk towards the end about some of our financial outlook. Jason Entwistle, many of you know, our Director of Strategic Development, is going to talk about our strategy in the market and how platforms have evolved through the market and talk a bit about Class and talk about the price development piece we've been doing in Class today, which I know people have been waiting for us to hear about. Deborah Latimer, who's not with us today, has joined us recently as our Chief Risk Officer; Wendy McIntyre, General Counsel; and Paul Biggs are not speaking today. But Darren Stevens, our Chief Product Officer, will be talking about our product development road map, platform of the future and showing a couple of demonstrations, one of the HUB24 platform, and another of a unique reporting tool we call Present, which will make life easier for advisers and for customers in terms of looking at their overall wealth on the platform, the foundation of how we're building out HUBconnect to build that single view of wealth. Craig Lawrenson, our Chief Operating Officer, is going to talk a bit more advantaged portfolio and our customer service attitude as well. In the next few weeks, Chesne Stafford will be joining us as our Chief Growth Officer. And we're currently in market looking for a Chief People Officer as well as the future CEO of the Class are at the final stages of recruitment of that role as well. So a very talented and diverse team of people with great experience. We're certainly building the strength of the business for further growth into the future and delighted to work with these great industry leaders. So without further ado, I will hand over to Craig Lawrenson, who's going to talk a bit about managed portfolio as a customer service. I'll see you at the back of the presentation for when we do the Q&A. Craig?

Thank you, Andrew, and good morning, everyone. Just a quick reminder for those online. The Q&A will be held at the end of the session. And so if you have any questions, please submit those online. Today, before we sort of start to focus on the next phase of our strategy. We thought it was important to reflect on some of the strong foundations we've established as a business. So today, I've really got 2 key areas to talk to you about. One is the role our customer service or customer experience proposition has had in building confidence and advocacy momentum in our business. And secondly, I guess, the importance of our leadership role in managed portfolios as a continued lever of growth. And both of these are strong strategic levers that we believe are a competitive advantage for our business, and we'll continue to drive our business forward. So just on the customer service side, which we believe is a competitive advantage driving long-term growth. And when we think about that service experience, it's kind of a whole of business proposition. It's the strength of our relationships with our key clients. It's the quality of our BDMs. It's the responsiveness of our technology right through to how fast you pick up the phone and how fast you process applications. And when you look at the right-hand side of the slide, you can see that we're doing a lot of things right. In terms of adviser ratings, which is kind of a capability review, obviously, best platform offering and best investment options, best adviser experience. Wealth Insights, which is much more of a service overall satisfaction survey, a strong consistent performance where we were, this year, equal second platform overall in Wealth Insights. And probably the bottom 2 are pretty most important in the context of consideration. So HUB24 now is the highest adviser consideration when thinking about a new platform. The advisory market is thinking about, I'm going to change platforms. I'm thinking about changing platform. HUB24 is the highest in that category. And equally in the context of the service proposition, once advisers start using us, they're the least likely to leave us in the first 12 months, which is really demonstrating our ability to deliver on that service proposition. So how have we gone about that? We've had a very focused investment, and there's been 5 sort of key principles or fundamental pillars to how we've driven that proposition. Flexibility, it's about working with your clients, like really actively working with your clients, to understand how they want to run their business and how we can support them running that business. A recent example there is the ongoing fee consent process, but we've actually adopted a lot of the processes and the forms that our advisers have been using. Why? Because it makes sense to do that. And that's something that our competitive platforms have not done, and it's been a really strong driver of support and efficacy for our platform. In terms of transparency and accountability, they work hand in glove. We have very transparent workflow. And you'll see through Darren's video demonstration later that advisers have the ability to understand and see where workflow is up to, they get to see whether it's with us or with them. And so that really drives accountability in that service proposition 2 ways. From a scalability perspective, it's about, and we have and we will continue to invest to ensure we're ready for that growth. We actively forecast out where we think the business needs to be, and we invest ahead of that time to ensure that we are ready, and that across technology and people and processes and capability. Andrew spoke about the quality of the executive team, which is a fantastic team to work with. But when you look beneath that, our extended leadership team or our senior leadership team, it's a very capable and very experienced team with lots and lots of experience in running platforms. So whilst these are all kind of individually important, it's actually the combination of those things and our consistent performance and our consistent investment needs of those which we believe has delivered that sustainable experience. So I guess there's a question a bit of a so what in terms of, well, what does that mean? What does that do? And so when you analyze that business a lot more deeply, you can really understand the implications and the impact that, that service proposition is having on our business. And just to unpack this slide for you, it's really showing over the last 2, 4 financial years and year-to-date to March this year, that the overall net flows across the business is split by the cohort of advisers that are driving that new business. And so the 5 cohorts are for advisers who joined us prior to FY '18, in the '19 financial year, 2021, '22, respectively, and their contribution to that net flow proposition for each of those 3 years and for the 9 months to March. And whilst the scaling, because of net flow outcomes are quite different, probably plays your eyes a little bit in terms of the colors. There's really 3 important points. One is in terms of new users of the platform, we're getting very strong net flow contribution from those advisers. Why? Because our onboarding process works. We have an active training program around those new advisers to get them in and using the platform. Now secondly, in terms of long-term use, 70% of the flows are coming from advisers that have been with us for more than 12 months. And within that, probably half of that, has been driven by advisers that have been with us for more than 3 years. And so what you're seeing is that these new advisers remain productive over many years, the service -- the promise that we're delivering on this driving advocacy and use across that platform. And that's also playing out this kind of this network effect as advisers talk to other advisers. And clearly, we're top of mind when people are thinking about using our platform, that delivering on this service promise, delivering competence, creating efficacy across the marketplace is helping support the continued growth in active advisers with a 25% compound growth in new advisers across the platform. And in that context, it's a latent opportunity that we have. When you look at the total advisory market of roughly 17,000 financial advisers, we have access to 75% of those through the arrangements and the contracts we have already in place with licensees. And so those advisers talking today, they're advisory friends thinking about changing platforms that HUB24 is top of mind. We get this great network effects where those conversations are driving new users, which are driving that growth profile, which is quite a profound opportunity for our business. I'd like now to talk to the second part, which is around managed portfolios. And the challenge we had a few years ago was, in the context of other platforms, building at the managed portfolio propositions that not all advisers and licenses understood that some of the managed portfolio, managed account platforms were different. And there are clearly some very important generic benefits of managed portfolios in terms of client direct customizations, portfolio transparency. You can see the assets within those funds. I can move those assets around in terms of portability, speed of implementation is there and individual tax outcomes. So really, really strong benefits from the adoption of managed portfolios. But what the market didn't understand what was unique about HUB24. What sets HUB24 apart in the context of managed portfolios. So we have a range of tools and a range of capabilities that are consistently being used across the marketplace. So when we think about tax optimization, we think about whole of account tax optimization. When that asset is being sold, we look at all the relevant tax PARS before we determine what the right tax PARS to sell to generate that tax outcome. In terms of trade execution, we have an in-house team that works the orders into the marketplace, working with market makers and ETF to ensure we get the very best possible price for clients. In terms of on the investment side, portfolio implementation, we have a dedicated portal for managers to use and implement their managed portfolios through our platform. It's not spreadsheets being e-mailed to operational teams, it's a manager portal, therefore, the managers to use. And within that, we have a range of tools. And so we have a tool called Progressive Portfolio Implementation, which allows managers to be much more strategic and time-based and progressive about how they implement portfolio changes. They can have a profound impact in terms of the performance impact of those managed portfolios and also the tax implications of making portfolio changes to managers. We've done a lot of work and understand the benefit of those, and we've got case studies that prove that there are many thousands of dollars of benefit in terms of long-term retirement savings of our clients from using those capabilities. But the challenge is the market didn't understand that. And so over the last 2 years, we really spent a lot of money and focus our investment on really driving that understanding across the marketplace. We hired a new Head of Managed Portfolios, Brett Mennie, a seasoned sales professional to spearhead that conversation in the marketplace. We've developed a range of white papers case studies proving and demonstrating the value of those unique capabilities from a platform perspective. We've launched a Managed Portfolio Academy for anyone who wants to use managed portfolios to reinforce the generic benefits to manage portfolios, but to also reinforce what makes HUB24 different in the context of those. And we've had a range of other tools, webinars, digital marketing campaigns to really raise the awareness. And the proof is in the pudding. And so if you look to the right-hand side of that slide, the results have been really pleasing. One is that we've been #1 in capability around manage portfolios for 6 years running. But more importantly now, we're #1 in awareness of managed account platforms across current and potential users of the platform. We have the greatest overall share of advisers using managed portfolios, and we have the platform of choice in the manage portfolio market, which is a fantastic acknowledgment and reflection of that investment that we've made. So I guess the question again is, so what? And so when you look at the marketplace, you're seeing a total platform market, which really houses the managed portfolio, the managed accounts market of roughly $1 trillion. The managed portfolio still is only sort of 13%, $131 billion. But that composition of the market is changing quite markedly. And when you look at the most recent investment trends report around managed accounts or managed portfolios, you're seeing this really profound pipeline effect of that composition changing. We now have 53% of advisers adopting managed accounts, that's up from 44% in 2021. Within that, they're now recommending managed portfolios to 60% of their clients, which is up from 44%. And really -- and that's been focused on around 40% of the client flows. So you're getting this really strong pipeline effect, which will have a profound impact on the composition of the market in terms of that $131 billion growing quite aggressively in the context of the platform -- overall platform market. And the great thing for us with #1 in awareness that we are the natural home for those advisers to use that platform, and our composition now proves that. And 44% of our platform FUA is in managed portfolios. We're a natural home. 65% of advisers using managed portfolios -- 65% of advisers on HUB24 are using managed portfolios. The game proves we're high in awareness at a platform level, we're high on awareness in a managed portfolio level, and certainly, we can prove through the use of our existing platform and the assets sitting on our platform that we are the natural home. So we remain very confident about these dynamics around the platform market and how they set us apart now and what -- as we look to the future. So before I hand over to Jason, just a couple of things. So we've really built some strong foundations on service. We've built strong foundations in leadership and managed portfolios, we built strong advocacy confidence, momentum and trust across our users about how they think about how we're operating our business. And these are all critical as we start to look forward to the next phase and stage of our strategy. So with that, I'll hand over to Jason. Thank you.

Thanks, Craig. Morning. That's actually just for me personally sitting here, we don't talk stock very often. So Andrew and Craig, it's great to look back at what we've done, and even for us, I think it's a good thing. I'm going to cover today some of the structural rise of platforms, the specialist platforms in particular, compelling drivers that are underpinning the growth, starting on our vision for the platform of the future, which Darren will drill further into and where we need it to be placed to take advantage of it. And also some of our rationale for the Class acquisition. But before we get there, I wanted to look backwards a bit. And I'm an obvious platform geek. I have 30 years of data on the platform industry. And what we've got here is the gross flows allocated between the different types of full-service platforms over those last 30 years. To give some context, in the early '90s, the gross flows would have been about $100 million. In about 2000, 2001, we hit about $10 billion or hit $1 billion probably in '94, '95. $10 billion in early 2000s. And in 2021, the industry in the calendar year was over $100 billion in the cohort I've got here, as I said, the full service platform market. So the industry is growing very strongly. And you can see clearly, there are waves of development. So the Master Trust, Navigator and Asgard were dominant in that period. It was largely a managed fund solution. And that came through at a time when advisers really had nothing. So those platforms came through and solved the problem that was really causing trouble for advisers, and I'll go through that in a second. Institutional reps came in. This is the BTs and Macquaries of the world, much bigger marketing budgets, much bigger distribution and took control of the market for quite a period. And you can see the specialists, including -- sorry, HUB24 and Netwealth coming through in the market now. And our view is history will repeat here. But that trend will continue. And interestingly, in each period here, there are 2 platforms that dominated: Navigator and Asgard in the Master Trust period. BT and Macquarie needs their wrap period, and we think history will repeat in this period. And part of the rationale for that is it's really difficult to have 5, 6, 8, 10 platforms, driving and investing and delivering into the market and dominating the space. The adviser's needs is fairly homogenous. So if you can really meet to the advisers, be a leader in the space, you are likely to get a large proportion of the flows. So in those last 2 periods, both of those providers, the dominant ones between them, but more than 50% of the gross flows in the market. And we're looking at will that history repeat? I'll leave that with you that question. So going back, why do we exist in the first place? And this has been for the last 30 years. Platforms came in to deliver efficiency for advisers. Before they existed, advisers have to do it all manually to get a diversified portfolio of investments for a client, they have to fill in an application form for every investment, 8 to 12 application forms, that meant 8 to 12 commission checks coming back to them, 8 to 12 [ promise ] to call or numbers they're in to get a valuation. It was just tough for them. So Platform solved that problem, and they did it really well early on. So I gave that single view of wealth for the adviser and one way of doing business. It also delivered efficient access to the fund manager's IP. Ultimately, that's what the adviser is driving it, getting access to the fund managers IP to deliver an investment result for a client. Giving efficient access has been part of the platform promise for the whole period. Craig just mentioned our managed portfolio tech and functionality. We believe that piece, we've really sold very well, and we've got a big vision of where we want to take it, but we've done a great job there. Have we been so good at the first two? The world is much more complex now. So platforms today, custody-based financial products. And because of that, they are relatively limited in their scope. We can't do everything in that environment. There's a lot of things we can do, and you can see on the left-hand slide here, there's lots of investments, platforms have become really complex, thousands of investments options, but we don't cover the full view of a client's wealth. So clients have other assets. They have bank accounts, obviously, and lending. They have property investments. They have alternative unlisted vehicles that are getting more and more complex and don't handle -- we don't handle them very well in custody. It's -- a lot of our clients hold their ASX stock in their own name, whether it's SRN or HIN, and that is a good solution. And there are other platforms out there. So we are not they're only deal of the client's wealth. So to deliver into that promise, that single view of wealth, we need to move from a custody-based financial product platform to platform-as-a-service, looking at literally the client's entire wealth. And getting back to that one way of doing business, we have to think about how do we put the client and the advice practice at the center of everything we do and deliver our functionality at that level not sitting connected to the financial product. So it's pulling our functionality out of financial product and delivering it to the advisers desktop. So we don't deal with just 30 to 60 of the advisers 100 clients that under the best interest test, our products the best for them, we can deal with 100 of their clients. All of their clients can sit in this model. The custody platform becomes still a really important cog in that wheel, but it's just one component of the overall solution. So back to the problem. We've got those 3 promises we made when platforms first came in. To deliver into that solution, the platform on the left-hand side there is obviously part of that solution. But it's only a PARS. PARS, the noncustody platform is another big component of that. That's why we entered that market. That's why we acquired those businesses. And we've got our other solutions, HUBconnect, now Class and now -- Class now and NowInfinity. And these are all part of that same solution. They are all components. It's not probably really clear today how they all plug together, but hopefully, we'll make that clear for you today. And underneath, we've got an infrastructure that we've been talking about, we've been building for a number of years that is really the data platform of the future, that will drive and empower all of these apps above the line to deliver into this promise for our clients. And we get a couple of other really important outcomes here. One is giving the advisers flexibility, but the licensees visibility. So anyone who's talked to an adviser or a licensee, [indiscernible], the adviser will say, I don't get much flexibility in choosing the tools that I want to use to run my business. And the licensees will complain that they can't see what the advisers doing unless they enforce them into a pretty much a single tool set. And it's not suiting either of their needs. Our view is if we can deliver this infrastructure, it will enable the industry to let the advisers have more choice in the types of tools they want to use, whether it's a CRM, a financial modeling tool, whatever that is. But the licensee will always have visibility. We can show them what's going on. And much better than it is today, we can show them 24/7. We can show them live what's going on, not showing them what's going on by 3 monthly audits in an adviser's office, looking at random [ valve ] check, that part of the industry is gone. We need to be 24/7. Finally, reporting and insights. With all of this data, we can see, we can benchmark practices, we can look for compliance red flags, we can look at the opportunities of advice. There's so much that we can see that will empower our industry and push it forward and introduce efficiencies. So Class, Andrew mentioned Class before. It is a leader in the SMSF space. A clear leader in the SMSF administration software space and being recognized as that for more than a decade now. It also owns the NowInfinity business, which is a leader in corporate compliance and documents, documents being trust deeds, constitutions, et cetera. It is actually a very good business. It's got a great brand, good product, deep client base. So by itself, it's a good business. But why did we buy it? We really believe in the SMSF industry, in that product, if you like. It's had a bit of a lull, you can see on the graph, in terms of new establishments, but it's back. And that's 2021. I believe 2022 looks even better. And why is it back? This is personal superannuation. The new public office superannuation, the new initiative from the government is your super, your staple to a fund. SMSF is where the staple -- the fund is staple to you. In other markets, these things are really successful. In the U.S., you like a 401(k) plans, in the U.K., you might call the [indiscernible] or PIP. It's personal superannuation, household superannuation. You get much more flexibility, but you must follow the rules to get the concessional treatment. That's the deal. In Australia, it's largely been the high net worth that have had access to this solution, mostly to accountants, very much an SME, small business solution. And been really successful. They are great. They are really good. But we believe that with 12% SGC in a couple of years, the superannuation balance is obviously ticking along really quickly, that the SMSF market will be available for a much larger cohort. So today, there's 600,000 funds, about 1 million members, why can't that be 5 million members? Why can't this be -- with industry funds and things that look like industry funds, why can't this be that other [ bell bar ] industry? So look forward 10 years, what does it look like? We think this is that other [ bell bar ]. So our strategy for it, A, consolidate leadership position. It's in a really good spot we need to consolidate its position. Collaborate with Hub24 and platform of the future. There's an amazing technology here. It's one of the industry's best tax engines for portfolio reporting. And one of the few, there are not many, it is -- it's got a great portfolio registry. It's got all sorts of stuff that we really covered and the data is amazing as well. The ability to manage, consume data from multiple sources, about 200 to 300 data sources and then distribute that data. So that's a really good tech that we cover as part of platform of the future strategy. But we also want to grow the market. So we want to grow some market share. But we think we can grow this market, and I'll come back to that point in a second. So when you look at what HUB24 does, I mentioned Platforms and why they're here, we really get involved in the implementation of advice. We don't -- we're not a lead source for clients for advisers. We don't run their CRM, we don't do the financial modeling, we don't produce SLAs, the statements of device. But once those recommendations have been made, we do play a role in the implementation of that advice. Traditionally, HUB has been involved in the implementation of investment advice. But with NowInfinity and Class, we think we can move up the chain and getting billed a lot earlier in the process and make it a lot more efficient. So much in a world where a financial professional, whether an adviser or an accountant providing advice, it might be to set up a self-managed fund, establish a family trust. Once that advice is being accepted by the client, with NowInfinity and Class, we can create those documents and create those vehicles, register them with the regulatory authorities. We can administer them through Class, tracking the beneficiaries or the trustees or the members. And to invest it then, we can push it into HUB, establish the account, invest the money, rebalance it with our manage portfolio tech, build the tax optimization that Craig mentioned before, record on it and we'll see some of that coming through. And then the review. There's also the wealth vehicle compliance, or the ASIC compliance for corporate entities, et cetera, through NowInfinity. So if we can close that loop, if we can integrate all of that tech together, this will not be -- this will still be an open-architecture model. But this will work really well between NowInfinity, Class and HUB24. If we can make that a really simple process, the implementation [ of today ] is a real pain point. It can take weeks. The advisers pull their hair out with all the nonsense between the regulators, platforms, all the stuff that's going on. If we could make that a really simple process, 1 data entry, 1 way of doing business and around the circle it goes, we just think that will be a fantastic position for us and for our clients. So today, I'm introducing a new service, not quite launched, but well on the way, which is the HUB24 SMSF service. It is a combination a bit like the diagram I just showed you of NowInfinity creating the vehicles, Class administering the SMSF and the member details and HUB24 investing in. The market we're targeting here is a market that does not exist for SMSF today. It is the aspirational accumulators. So these are the relatively high-income earners who probably on their path are thinking, "I will have an SMSF 1 day, but today, I don't have the balance." And so I'm kicked out of that market. And today, I'm sitting in an industry fund or a retail fund, but I want to get to an SMSF. The earlier you get there, the better. The less tax you incur along the way, the benefits you get have been in the SMSF for a longer period. It's been fees really that have been the thing that's stopping everyone. So we're looking at can we create an SMSF service that is akin to retail-type servicing, akin to retail-type pricing as a true alternative to industry funds or retail or these aspirational accumulators. And that, for us, could be the thing that drives the industry from a million members to many millions of members. It's also a great lead source for the rest of the industry. We know these clients will go on a journey in the incubated model, but that model is a bit restricted. It's much more -- there's much many more options than in retail superannuation, but it's still going to be a restricted model. There will be some guide rails. You'll have to invest within the HUB universe, the non-super universe, what we would call it. But ultimately, those clients might want to go and do bitcoin, property, whatever. And so they will disengage from us with our blessing and go into the ecosystem that sits around Class really of administrators and accountants, auditors and actuaries that they can do it themselves, literally the self-managed superannuation. And so what we are doing here is creating a new path, a new incubation service for those early stage SMSF aspirational members. This is through the advice network. So we know our advisers, there's demand in our network for this. We're probably left -- if you think about an adviser that chooses HUB24, as part of the transition from another platform to HUB, often they leave behind some superannuation numbers because there's too much tax to incur or, for whatever reason, they can't make it stack up. We think with this as a new choice. We still got our retail superannuation. But as a new choice, we think that this might give us a rate of penetration into the existing books we've got as well as a whole new market. There is another angle on this, though. The industry, I showed before the stats of net funds created 23-odd-thousand. What I didn't show you is that's the net number. Every year, about 15,000 to 20,000 funds leave the industry. And some of those funds leave the industry because they just get sick of running it. Sometimes a husband and wife team who've got their SMSF, 1 partner dies, the other one is not really interested in running it. And so these funds end up, wound up and clients, everything sold and the clients are pushed into an industry fund and sort of from there on the left to their own devices. We think it's a bad outcome. If we could, as part of our service, extend the usage of the SMSF so you say, we want you to keep it, just pull it into our service and make it simpler, but we'll continue to run it as an SMSF. And so this is a new solution for existing accountants out there to say, we think we've got a solution, but we don't have to close it down now. We won't lose this fund to the industry. You won't lose your client. At the moment, this is -- we've been testing this concept out with some of the advisers, getting great feedback. We're going to commence an actual live pilot with some of our advisers in the next quarter, and we've got really big plans for this. So that's it for me today. Just to leave you -- we've talked often about HUB being the integration of platform, technology and data. And that really is the stuff that's driving that platform of the future. Darren is going to talk more about what that means. But we think we're uniquely placed to drive into on those waves of success in platforms. The next wave is not even on the graph yet. We think we are uniquely placed to drive into that obvious standard for success. Darren?

Yes. Thanks. Thanks, Jason, and good morning, everybody. As you've heard from Andrew, Craig and Jason, we have a really strong vision for what the platform of the future is. And we've been very deliberate in the -- changing sorry, very deliberate in the acquisition and the build-out of the components that we need for that platform of the future. So putting the customer at the center, having multiple different advisers that they're going to need to interact with, having assets that are custodially-based, noncustody-based and then that one way for the intermediaries to deal with us. So it reduces friction and makes their life easier. But 1 way for the customer to see all of their wealth. So a really strong vision. What I'm going to cover off today is a deeper dive into each of the components that we have, and also the program of work that we've got underway that is bringing them together into that platform of the future. So I'll start off by talking about the HUB24 custodial platform, then I'll talk a bit about the portfolio accounting and reporting service -- sorry, administration reporting service, the PARS business, and then how we are integrating in Class, NowInfinity and underpinning that with the HUBconnect work to bring that platform in the future into reality. And through the process, we'll also give you some deep dive views into some of those artifacts to really bring to life and bring some color into the things that we're talking about. So if we look at the HUB24 core platform, our custodial platform first, we're really proud of what we've achieved in this platform. It has broken the $50 billion in FUA, and most of that is organic. We have won the managed accounts functionality for 6 years in a row. And you heard from Craig and also from Jason, about the strong tailwinds in that business and how it's really improving the efficiency of advice and the efficiency of the portfolio that's being delivered to the underlying customers. We also topped 22 out of categories in the investment trend survey, which led us to being ranked #1 for best product offering in that survey. But we're not resting on our laurels after we win those. We've got a very strong pipeline of work that we go through every year. 2022 was no exception. We launched 2 private labels within Signia and ClearView. We also focused very heavily through that, obviously, the COVID period and the post-COVID period and how do we improve the efficiency for the customers and the advisers. So we strengthened up our digital acquisition and digital onboarding capability. But we also built in for the new fee regulations a digital fee consent basis that didn't just mean advisers had to comply with the way we did it, we brought in the way they did it to try and make that a much more efficient process for those advisers and their customers. And Jason mentioned the new -- and Andrew did too the new present report function that is in beta with about 70 clients at the moment, 70 advisers at the moment and is going live over the next quarter. And I'll do a live demonstration or video demonstration of that towards the end of the presentation to give you a feel for how we're trying to make the engagement between advisers and their customers that much stronger. For 2023, once again, big pipeline of work underway. We're looking at more adviser efficiency. We're looking at more self-service for customers, better cash handling for customers, but also incorporating some of the features and functionality that we've got from the Xplore acquisition to raise up the features for high net worth and ultra-high net worth individuals. So enhancing our asset class capabilities with FX, overseas assets and with bonds. [Presentation]

The HUB24 investment platform is designed to support advisers with the administration, trading and reporting of clients' assets. Here, we're looking at the dashboard in what we call Adviser HUB, the portal where advisers and their staff would manage those clients' assets. What you can readily see is a comprehensive snapshot of a range of business metrics and activity that allows advisers and their staff to easily manage their clients with HUB24. Firstly, you can see a snapshot of their funds under advice with HUB24. Information around inflows, outflows and new accounts that have been opened. Scrolling further down, we can see information around advice fees and brokerage as well as tiles that allow advisers to click through to see relevant information for transactions that are in flight. It could be pending trades or information around corporate actions that are accessible and relevant for their client base. Further down, we see cash-related tools, which is the heartbeat of any rep platform. And support tiles that allow advisers and their staff to interact directly with HUB24's back office around administrative and workflow items. Each of these tiles can be clicked through for further detail and action is required. This is a key component of HUB24 service and support proposition along with tools such as screen sharing and live chat capability that connects directly to our client services team. These tools help deliver a fantastic service experience for advisers as reflected by the number of awards HUB24 has won over the recent years. As we continue down further, we can see further options around account management activities, client usage and log-in activity importantly at the bottom, a snapshot of the all-important superannuation contributions tracker, with the ability to click through for further information on this critically important component of advice planning. Tools such as this are at the heart of creating efficiency for advisers and supporting their advice strategies. When I scroll back up to the top of this page, it's important to call out that this page is customizable and can be adjusted for advisers and their staff based on their individual roles and responsibilities to get a more meaningful dashboard. We'll shortly have a look at how an adviser would view a client account. Before we do, it's important to call out that HUB24 provides access to a very broad range of investments for advisers and their clients. Clicking on the Investment menu, you can see at a high level, HUB24 offers a range of professionally managed portfolios, or SMAs, well over 1,000 managed funds, domestic and international listed securities and term deposits. The breadth of this menu is important to allow advisers to construct best-of-breed portfolios for their clients as well as asset consultants who are running professionally managed portfolios. Managed portfolios, in particular, are an area of growth in the industry, and something which HUB24 excels. The HUB24 platform provides clearly differentiated capability in this space to support enhanced client outcomes, which is reflected in us being awarded as best platform for managed portfolio capability 6 years in a row. If I scroll down this page, I can see that I'm now looking at an individual client account, and I'll see a snapshot that gives me a view of clients' performance, where I can adjust the date ranges and I can also benchmark against a range of indices. Continuing to scroll down, I can see a breakdown of the clients' investment portfolio. In this case, I can see a range of managed portfolios, listed securities, managed funds and cash. On the right-hand side, I have pie charts giving visibility of my clients' assets and sector allocation also. Importantly, HUB24 provides a very simple tool to allow advisers to view this information over a single client account, or where appropriate, aggregate view across a number of accounts for that individual or within a family group. You can very simply use these toggle buttons to change views. Trading is another incredibly important function of the HUB24 investment platform for advisers. What we see for this client is a simple snapshot of their total portfolio value, and importantly, the available cash with which to trade. Below on the same single screen, I can see the different asset types that I might need to trade. Managed portfolios, securities, managed funds, term deposits, all on 1 simple screen. From here, I can place trade instructions at the same time across the different assets as required for my client. Importantly, HUB24 provides very easy-to-use pre-trade tax and compliance oversight tools to support advisers where other platforms can't. One critical support tool for advisers is the ability to understand pre-trade what the CGT implications might be for a particular client. With HUB24, at the click of a button, you're able to see, based on the assets I'm looking to trade an estimated tax outcome prior to proceeding with the trade, using a tax rate that can be adjusted at a client-by-client level for an accurate reflection. This pretrade information is critically important for advisers to ensure no unexpected outcomes, and that the tax implications from any given trade are within expectations and aligned with what they have set with their clients. Further from a compliance perspective, through the Analysis tab, we provide a range of tools for advisers to understand pre- and post-trade outcomes to ensure they will still align within their compliance guidelines. A simple example being the ability to confirm that after the trade is complete, the asset allocation for a client will remain within the risk profile parameters and keep them compliant. From here, an adviser can proceed with the trade, where we also provide automated tools supporting efficiency and scalability. An example of this is the automatic production of advice documentation, which otherwise becomes a manual process for the adviser. Finally, we touch on reporting. Another critical function for investment platforms such as HUB24 and how we support our advisers and their clients. HUB24 provides a very easy and comprehensive reporting tool for advisers, allowing them to customize date ranges they would like to report across and select whether they are looking to report on a single account or across multiple accounts within a family group. There are over 40 different reports that an adviser can choose from, and each report can be exported to PDF or Excel for simplicity. So if we return to the dashboard, hopefully, that gives a sense of the different tools that are available to our advisers and the role that HUB24 plays in supporting the advice market. Ease of use is paramount and something we continually strive for as we develop the functionality to support advisers with the administration, trading and reporting of their clients' assets.

So we felt it was really important to give you a sight of the actual software, how the advisers actually use it. So this is the back office of an adviser's business and how they're administering their clients' portfolio. And it's a real glimpse into what is quite a massive amount of functionality available to those advisers. But the other thing that's important is, and you heard it through the demonstration, those views can be customized to the advisers' back office to improve efficiency. And whoever is using it, it logs on, knows who they are and won't show them a confusing array of screens and functionality that they don't actually need to use to do their day-to-day work. And we spend a lot of time working with advisers to continually enhance the efficiency of how we offer that to the market. It also showed you some of that market-leading technology that Jason spoke around, the optimization of the portfolios of the clients. So moving on. I'm looking at that second component I talked about. So we've got the custodial platform, now we're talking about the PARS noncustodial administration service. And this is really centered around the acquisition we made of the Ord Minnett business number of years ago. That technology has now been embedded in the HUB24 technology base. And we're administering over 8,000 accounts, we have $17 billion in FUA and that's out of about $150 billion of what we see as traditional noncustody, broker-based marketplace. So lots of opportunity for us to expand and provide this service to other players. We can offer it as a holistic solution. So what's there today is you can onboard clients, we can run their administration, we can do their tax, we can do their fees, we can do corporate actions. We can act as a mail house for them. But our vision of the platform of the future is it's a platform-as-a-service. You don't need to take the holistic solution. If an organization wants to outsource a component of its back office to be more efficient, we've built this in a way that we can offer those things as a service to the underlying organization. So if they want an onboarding service, we can do that for them. If they want a corporate action service, we can do that for them. So very much a pick and mix, but also a holistic solution that we can offer to provide us more generally. This next slide really demonstrates the rationale behind why we think this platform of the future is needed. It's out of an investment trend survey in 2021 and have been told that the actual trend, and this is continuing, if not being exacerbated in the most recent survey. And if you look down at the bottom, this is how many advisers are advising and administering noncustodial assets on top of the traditional platform, custody assets and superannuation assets. And so 20% of advisers came back saying, "No, we don't tend to do that." But that means 80% of advisers are administering noncustodial assets on top of the traditional platform. And of those, 47%, over half, are doing this manually. Highly inefficient. High risk of errors in that process. And so really, this is reinforcing to us 2 things. One is the need for the joint custody, noncustody solution, but also that there's a much bigger noncustody market out there in the traditional $150 billion broker-based noncustody assets. And so what does that mean? This is a more detailed version of that initial diagram that I showed you. So we -- what we believe is we need a solution that allows us to create an environment for a family group that hand is essentially set up for their future. So it might be they have [indiscernible] based assets. It might be they have a family trust. It might be they have an SMSF. It may be they use a series of different platforms. So our solution needs to be able to cater for the complexity around that family unit and how it's been established. It needs to be able to integrate with financial planners, brokers, accountants or any combination of those and provide that service into them. And then it has access to custodial assets like the HUB24 platform, which will have managed accounts, have turned deposits, will have many of the assets that Jason has already mentioned. And then there's the noncustody side where people are getting more and more involved in investing in assets outside of those custody platforms, unlisted assets. It might even go down to collectibles and cars. It might go up to all the different banking facilities that they're using. And so we're bringing together that noncustody capability, the custody platform and then all of the services that sit around that need to be unified. So at the moment, many advisers have to go into different systems, handle things in different ways. If they want to run a corporate action, sometimes they have to go to 3 different places to actually make the election for that corporate action to go through for the client because they're holding the asset in 3 different regulatory structures. So we're looking to bring together all of those services that we have today in the different components into a unified way of managing our client from onboarding, from doing the superannuation and SMSF administration to creating the documents that are required for their various financial setups. And as I said, we have a very deliberate approach to this, by building out our leading services and acquiring components that then build into that. So the HUB platform, the PARS business, added together with the Class functionality, to now Infinity functionality around the document and the compliance management. And then underpinning that with a data source that brings together data. And this is one of the biggest challenges the industry has had, is how do I get data from all these different disparate sources so that I can combine it, see it in one place and then also actually act on that. And that's been the challenge that HUBConnect has been -- we've been developing over the last couple of years to solve that. So if I move on to the progress we're making. I spoke about earlier, the fact that we're continuously involving and investing in the core platform. So we will continue to enhance that going forward. That's not going to stand still. We've added to that, the high net worth capabilities out of the Explorer acquisition in this most recent period. We've embedded the HUB non-PARS service and have that available now as a Platform as a Service. And as Jason outlined, we are very close to launching into a pilot a self-managed super fund where we brought together the class, the now Infinity and the HUB platform together. Underneath that, we've also been working with a series of think-tank clients and their advisers. So think-tank clients being the licensees and the advisers on what do they need from that single view of wealth and what data do they need access to. And then what services can we provide to them once we have the access to that data. And the next phase that we're now moving into is around unifying each of those components. So we have the building blocks, we have the HUBConnect portals. So it's now bringing together for the advisers and the customers one way of doing business or one way of seeing their wealth. And it's also bringing together that data capability that Jason talked about in the Class acquisition, where we're really accelerating bringing to the market that data as a service component. And that will ultimately deliver those 4 key tenets that we've spoken about all the way through the presentation. So that single view of wealth for the customers, one way for the advisers and the customers to interact across their whole of wealth, and then the increased visibility, flexibility and reporting that comes out of having that all in one space. Jason showed this slide earlier, and I thought I'd come back to it just to sort of resettle us because there was a lot on that previous slide of componentry. But essentially, it's bringing together HUB and Xplore, the Platform and the PARS with Class and our data capability. But it's really underpinned by that data capability that Jason spoke about. Andrew mentioned that HUBConnect was borne out of the Agility business. It has spent over a decade or more working with brokers in breeding in financial data, cleansing it, providing solutions back to them to make them run efficiently and provide engaging interactions with their end customers that wasn't available in the marketplace. Since they've been on board and we've incorporated that into HUBconnect, we've expanded that, we have over 90 integration points now covering financial planning software, covering platforms, covering banking accounts and banking details as well as that broking data. And we have over 90 customers underneath it that are accessing that information in one way or another to improve the efficiency. They may just get data as a service where they can see their client base, they may integrate that into their CRM systems, they may use our applications to improve the workflow processes that they have with their underlying customers. So once you have clean data, we don't own the data in HUBconnect, we're a custodian of data. But when we do have that data, it can provide all of that power back into those end users and end customers. And then by bringing Class in, we increased that data connectivity from the 90 that we have up to well over 200 different acquisitions. I think we've got 300 when you add the 2 together, but there is some overlap in the number of data integration points. But we've also got a very strong commissioning and authorization process that's in there that allows us to make sure -- and privacy and security that make sure that the owners of the data can request through that clean data in a secure way. And to put a little more color around how we're using that and also an area that we think we are market leading particularly in this space, we've been using machine learning, artificial intelligence and robotic process automation to really enhance the data that we're getting to provide to the end clients. And we have this concept of structured and unstructured data. Structured data, it comes straight out of the admin systems or the financial planning systems, it's dates, it's numeric values, it's addresses. So straight data that we can bring across. Often, it's got data cleansing issues that we need to solve. But there's a vast amount of data in the system that is unstructured. They are the CRM documents, they're PDF documents, they're identification documents. And these are things that traditionally licensees and advisers haven't been able to get their hands on. If they're basically paper form, you have to keep pulling the documents up. We use AI and machine learning to firstly identify those documents. We then categorize those documents. We extract relevant information out of those documents. We then combine it with the structured data. And that provides an amazing picture of the client for the licensees and the advisers that can gain access to it. And I'll give you a quick example to try and bring that to life. Statements of advice. Many advisers that I know of, they generate it in the system, it comes out and it's not fit for purpose. It doesn't look right. It's not personalized enough. It's missing a whole bunch of stuff that they want to put in for their clients that they discussed at the meeting. They bring it into word. They type it all up, they PDF it, they sign it, they send it on and get stored in a document. That's the source of truth for an adviser and for the licensee as to what the client signed up. It's not what's actually in the system in structured data. Our solution allows us to read that in, extract all of the relevant information, confirm it's being signed and then combine that with what's being implemented. And we can do an immediate compliance check on that. We can also then overlay the licensee and the advisers compliant levels on to various aspects of the data. Is the risk profile appropriate for the type of client that we've identified through reading in all of those documents? So you can see that once you have access to that structured and unstructured data, we can start to open up a whole new range of services to licensees and to the advisers that traditionally has just not been available. Now AI and machine learning is available to everybody. They are tools that you buy. The difficult thing and what we've been doing is training the machine in understanding what these documents are, where they're relevant, what information they should get out. So we've, over 18 months, brought in over 0.5 million documents from our different think-tank clients, and we've got very, very high in the high 90s levels of accuracy for reading that information, understanding it and extracting that information. And that's the difficulty in machine learning and AI. It's not having the tools. It's actually putting the time into building smart models around how we use that. So now that we've got a lot of this information, we're working with a whole range of different industry participants to actually use it in a proper way. Now I'll talk about the first one on this slide in a second, and we'll do a short demonstration. This is the report present functionality that we're rolling out. And we have in beta with a number of clients today. And this is really a unique way in which we can bring that data together for an adviser, give them great efficiency in setting up reports for their clients and also more engaging meetings with those clients. And I'll talk about that once you've seen the demonstration. In the center is that compliance reporting that we spoke, as being mentioned and I've just spoken about, which is where we can go into licensees, and we can actually help them with a KRI dashboard that reads every single document that they've created. They don't need to do spot audits through the process. They can actually get early warning around potential compliance issues in their business. They can also get benchmarking that shows how are their advisers and practices going against one another, and they can identify where they can go in and improve the efficiency of the underlying advisers' offices. So we're doing a lot of work with our think-tank clients around how we can use that holistic data for them to provide much more robust real-time compliance solutions. One of those is -- we've got in a proof of concept is you can actually load your documents up the advisers before they send them to the client. So that you're actually getting pre compliance checking of those documents before they actually get to the client to be signed, and they can make sure that they're covering all of the requirements of the licensee and the law. And then on the far left, you've got the data as a service. And this is the piece that we find really interesting longer term. The industry has really suffered from inefficiency. New fintechs will come in and they try and break into an environment where they've got to get access to clean, broad datasets. And then they spend all of their time not focused on the new core tool that they've created that's going to make the market very efficient. They're focusing on how do I get how do I get that data to power this. And many of them are struggling to break into the market because of that. With HUBconnect, we can create that central place of quality data, access to quality data. So if their clients are giving approval and authorization that comes through, we can release that quality data that streamlines the whole marketplace. And we can create an ecosystem of fintechs that are powered by this quality core data store. So that's really interesting. And we're in discussions now with over half a dozen fintechs at the moment who are really keen to explore the capabilities here and the ability to bring this to market in the near future. So what I'm going to do now is play you a short video presentation of the present function. [Presentation]

So this is a really good example of how Hub has been working with the adviser force on improving the capabilities for their clients. We went out there and spoke to a number of clients about improving our reporting on the platform. And they said to us, we don't need you to add to the 4 reports you've currently got on the platform. The big tabular reports with all the information on it. What we need help is how do we engage with our clients. Because at the moment, I've got my back office team extracting information from lots of different sources, pulling them into Excel, creating graphs, copying them into a PowerPoint slide and then taking that off. So every time they went to a client, they were spending between 2 and 10 hours in preparing information decks for their clients. So one of the better advisers and I spoke during the week, and he's just raving about the capability because he's going -- it's taken a 2-hour job down to 5 minutes for me to do this. I can do it in a really tailored way for a customer. So it can all be branded up and specific to them. I can sit with my iPad or my laptop in the room with them and show it to them real time. And if they have questions, I can drill down and give them real-time information on it. And then I can give them the PDF at the end of the day. And he said, I haven't been able to do that without all of that manual work upfront. So we see this as the first step in the new innovative reporting capability that will roll out to the HUB24 advisers in the next quarter, and then more broadly, across the HUBconnect infrastructure when you get access to that whole of wealth data. So to summarize, we've got a very strong vision on where we think we need to go with the platform in the future. We have the components and we've deliberately acquired and built out those components. We've got a strong roadmap that's delivering the integration of those components. And really, the focus is to make sure that we can reduce the cost of advice, improve the engagement for the end advisers and their customers and make advice more affordable for more Australians to gain access to. So I'll hand over to Kitrina now to give us a financial outlook update.

Thanks, Darren, and good morning, everybody. So I'm here to give you a quick update on the financials and the outlook. I'll just move along the slides. There we go. So what does that all mean that everybody has been talking about this morning? Well, we have very strong financial management. We have very strong operating cash flows. Taking the 31st of December reporting, we had over $15 million worth of operating cash flows. And the acquisition of Class will just add to that. The cash balances that we hold are significantly above those that we need for our regulatory requirements than our AFSL license. You can also see on this slide the dividends that have been paid over the last 18 months. The group's dividend policy is to pay out between 40% and 60% of the underlying NPAT each half, with the first half last year being $0.045, and then second half, $0.05, growing at 22% half-on-half and then the first half of this year being $0.075 again, a 36% growth. So very pleased with the dividend trajectory and the capital management of the group. Going forward, the acquisition of Class, Class will be incorporated into our Technology Solutions segment. We have 3 segments. We have the platform segment that covers custody and noncustody. We have the corporate segment that covers the corporate overheads and the investment that we have in the diverse advice group. And we have tech solutions, which includes the Agility HUBconnect businesses and will from this year-end incorporate the class business. We'll be including some new metrics for Class, which I'll talk about a bit more when we get on the next slide as well, but we'll be using the HUBconnect financial services clients, which is the HUBconnect and Agility, we'll be incorporating the Class, the number of accounts for their core super business in their portfolio and trust business. And then the document orders, which is on a pay-as-you-go and on a subscription basis, the number of documents ordered over a 12-month period and the number of companies that are registered onto the corporate messenger service. This year-end, when you see our reporting suite come out. You'll also see our first ESG report. So we'll be doing a report calling out the key risks and how we're managing those and how we look at sustainability across our core groups being customers, shareholders, employees and the broader community that we work with. So just moving on to my last slide. We have the financial drivers of the business. So we have here the last guidance that we gave was for full year '24 and where we -- the range that we expected for our custody for. So when we came out of the first half, we said that the guidance would be between $83 billion and $92 billion, and that included a range of net flows and was dependent upon market. But clearly, markets have been quite brutal in the last couple of months. And so we've got 2 years to run in that guidance. We'll continue to monitor that, but we're still comfortable with that guidance at the moment. You can see on the right-hand side of this slide as well, we've given an update on where the Q4 for this year, where the Q4 net flows are projecting. And here, we've said that this quarter will be in line with prior year's quarter. So if you look back at the quarterly results, when you look at full year '21, the last quarter, that's what we're expecting for this year as well. Again, we've got the earnings drivers for the core business. We've got advisers. So these are all as at the 31st of March, unless stated otherwise, but they're all at 31st of March, and we've got advisers of just over 3,400. We've got platform net flows, which is the custody net flows of $9.3 billion as of the 31st of March, that add on the last quarter for that to get to the year. Platform revenue margin is holding steady. It was 32 bps at the half and is still looking like it will remain in about -- that's been quite steady all year. The number of accounts for PARS is just over 8,000, and that continues to grow. The Class number of accounts for their core, super trust and portfolio business is just over 196,000. And the documents ordered on a rolling 12 months was just over 164,000. And then the company is using the corporate messenger service is just over 567,000. So we'll be incorporating those metrics into the year-end as at the 30th of June when we do the year-end reporting. We're hoping that all metrics continue to improve, but that's subject obviously to the macro environment and how the markets behave. We've also included here some information for you on the latest interest rate impact. And so the HUB24 platform and the PDS that we have for that, which excludes the Xplore platform and the Xplore PDS, so our maximum cash fee is up to 1.75%. And because we have flexible pricing, some people are on that fee, some people have a lower fee because they've got different pricing arrangements for other parts of their portfolio. We're slightly below that on an average across the HUB24 portfolio. We are paying customers interest, taking the combination of the arrangement that we have with ANZ, the RBA rate and our PDS disclosure on the rate counts that we have. We are paying customers' interest at the moment. As you are all well aware, we're in negotiations with different providers for our deposit contract. The one that we have with ANZ expires on the 1st of December, and between now and then, we'll be announcing what our new contracting provider is. And then finally, just a very quick update on the M&A announcements that we've had out and the targets that we've had out for those. So when we did the Explorer and the Ord Minnett and the Diversa transactions, we put out a statement that said by the time we got to full year '24, we were expecting an extra annual run rate of synergies of $10 million. We're still on track when we get to 30th of June 2024 to achieve $10 million every year. That will be a mix of expenses and revenue. A couple of years ago when we did the Xplore acquisition, we were sort of targeting mainly expenses, but given the portfolio has performed very well on revenue, it's now going to be a mix of revenue and expenses. And we're still targeting 13% EPS accretion for this year-end. And then on the Class acquisition, we had a statement that it would be 8% EPS accretive to the group from full year '23, and we're pleased that, that's still on track when we're looking out at the budgets that we're doing for Class and HUB24 for next year. So with that, I will hand back to Andrew for closing comments and Q&A.

Thank you, Kitrina. Thank you, everyone. Really liked having the team talk to the group here. In fact, Darren, the present functionality is awesome in terms of when you think about the fact that it's built, not on the HUB24 platform, it's built on the HUBconnect data. So it's running on the platform, but it's running off the HUBconnect database already built that then allows us to slot in other assets, as you said, and whole of wealth assets is ready as well. So reporting engine that will be fine-tuned and actually does that. So the foundations for that are there already. So good to see that coming alive, and great feedback in the market. I've certainly beginning that when I've been going around the country as well. Hopefully, from today, everyone, you can see that we do have great market leadership in our core propositions. We also have a coherent strategy for competitive advantage. You've met the team, strong leadership. We are very focused on the current phase we're in, and back to Jason's presentation about the yellow bar specialist platforms and how we think that will continue to follow history, it's the wave after that as well that we're also focused on with some of the investments we've talked to you about today. So we are continuing to invest. We've got a very strong leadership team. We also intend to leverage the product capabilities we've got through our acquisitions across our broader market and our other customer sets. Of course, we'll continue to build our business with a customer-centric and innovative product design approach that delivers real value for shareholders and for customers. So with that aside, I'm happy to take questions. There are questions able to come through online, and happy to take them from the group here as well. For logistics, I'll probably facilitate that, and we've got some microphones around the room so that the HUB24 team can answer from where they are as opposed to coming up and down from [indiscernible] given the camera situation. But there's 1 question online about the percentage of advisers having more than 1 platform or use HUB exclusively. Most advisers will use an average of 2 to 2.5 platforms. We can't use half a platform. Of course, but that's because of heritage. You've got clients on different services. You need to meet reasonable basis of advice objectives or best interest and different platforms, different propositions. So typically, an adviser will have a lot of -- more than 1 platform because they've got customers and they're in the process of moving. And in fact, in many cases, they'll have a couple of platforms for different propositions or different types of clients. Our goal, though, is to get as best penetration we can with advisers, with the services and the product features so we can suit their range of client segments moving forward. Other questions from the floor here in [indiscernible] or online?

Yes. Andrew, can you maybe just explain how the revenue model maybe changes as to sort of backfill as a service offering?

So over time that we already have a revenue model for noncustody, which is a fee per account, Platform as a Service, if it has the financial products inside. You've got the custodial platform and you've got the data piece on top. So it depends on the client relationship and the nature. So you'll see over time more revenue appearing in the Tech Solutions segment, which class in. But I think for quite a period of time, you'll see that the bulk of the absolutely being custodial growth. So the same as it is today. Incremental growth in the other with additional services and clients coming on board, and I think that will take some time to wash through before you see any change in mix in terms of affecting the current mix results.

So that, I guess, the noncustodial side is -- or the data side is a fee per...

There is fee per service. So as Darren talked about, we've got some relationships, which are with other providers, which are serviced from 1 data as a service piece. It depends on the relationship. But generally, the data piece is actually fee per account, or a fee for a service or a license, yes. But the strong growth in the outlook stand for Kitrina that we talked about is custodial for that revenue model should persist.

James Cordukes at Credit Suisse. Look, maybe just following on from the earlier question. I mean, a lot of the investment is actually going towards the benefit of both the client but also the adviser as well and making their life easier and more efficient. So do you think you should be adjusting your revenue model to charge more to the adviser? And I guess building on, I guess, what you're saying before with the platform of the future, well, things like HUB for example, like they drive increments -- sorry, how present will they drive incremental revenue? Or is it just purely around monetizing the customer business?

Depending on how to use certainly, there is fees to advisers for some of the data services and products, to licensees. So HUBconnect it's actually a licensee charging model where it fees charged to licenses. And then the next iteration to advice practices will be fees charged to practices. In the present model, if it's taken to market as part of a whole of wealth data platform that will have separate fees to take into market as part of HUB24. It depends on the usage group and profile. But yes, there will be more a more charging or service-based fees coming from advisory groups or professionals or other industry participants as opposed to subsidize it all from a customer point of view in custody. So you'll see that emerge over time.

Nic Burgess from Ord. A couple of questions for Jason, if I can, on the expansion of the self-managed superannuation market. So just that target market, you identified, Jason, I think, aspirational accumulators. You said that you're very much targeting that through the advice channel. Maybe it was just me, but it did sound like that was more of a sort of a sort of a pre-advice market, if you like, and workplace accumulation or sort of industry fund or retail superannuation type of people at this stage? So maybe can you clarify that? And sort of how confident are you that, that market target are getting advice or will get advice?

Yes. Nic, we're definitely going through the bistate and advisers have -- look, still these days, books of business of clients sitting in retail or corporate or industry funds that -- and we're not targeting, by the way, the very small mass market into the market. This is those as [indiscernible] accumulators probably in the $90,000 to $100,000 income brackets. As I said, a couple of years into the 12% regime. So they're putting a lot of money and so it's growing actually very quickly. And so they're not the years away and not decades away from being able to get into the SMSF market, and they are on the radar of advice. So there might be existing clients or advisers, they may be children of existing clients who advisers where they've been struggling, the advisers have been struggling with what's the solution for these clients. So do I wait, leave them where they are until they hit a certain number, the magical $500,000, and then we move them into something else? Or can we secure them earlier and bring them on this journey back quicker? And we do think there's a cohort in the bistate market today of that client. And we also think that this gives the advisers an opportunity to market to a different group, who might not be on the threshold of advice, but this may push me into that.

Yes. And to site fees previously a barrier, I appreciate it not even in pilot phase. Just how might the fees compare to sort of standard health managed circle or a retail rate superannuation?

Something super has historically been a fixed fee regime. So the regulator came out with a view some years ago about those fees and sort of the minimum level required in a self-managed fund to make it economic. The industry didn't agree with those fees, but there's been some narrative around that. The model we're looking at is fee is more intent of retail. So these are fees that will grow with the size of the -- on a percentage basis with the size of the account. And so we can support clients at a lower fee balance -- sorry, a lower account balance than maybe was traditional in that market. But we are -- it is a slimmed down version of it. It's not providing access to the full universe of investments. You won't be able to do property through it, you might be to do lending through it. Midpoint won't be on the menu maybe the TS, but not the rest. So it is a limited universe. But this is the universe that, that client -- it's more than the universe that client would get retail fund or an industry funds. It's giving them more flexibility and giving them a journey through to a much more flexible future.

Yes. And 1 last question, Andrew, if I can. Just maybe bring Kitrina into the conversation. Assuming you're successful in growing the market, how much does it cost cash, we think about development? How long does it take? What are some of those big sort of financial questions around that development?

So we'll be in pilot in late July, early August is the plan. And I'll hand over to Kitrina for second, there is some incremental operational costs because we'll be doing SMSF administration for those clients. But we'll match that to the revenue profile. So you won't see a hit there, and there's an investment cost upfront. Do you want to add to that?

There is. so like Andrew said, there are a couple of things. One, there is an upfront investment, and that will go below underlying EBITDA. And the way to think of that is, look, it will probably be somewhere between the $1 million and $2 million, and we'll give you a firm update when we get to year-end. And then going forward, the majority of the costs are variable costs. And so as we see the model implemented and we see the volume take up, then we'll be able to manage the costs being put on at the same rate as the volumes. Now there will be a few months where we have to actually front-loading service. But basically, we'll be looking at the volumes coming through at the variable cost on.

Strategically, Nic, if we can make this work better with less friction for the adviser and for those clients, which they can incubate and grow into full-service advice clients in the future. And even if you take the next iteration of this where we talk about platform in the future, imagine a world where you can -- you've got the end-to-end with the [indiscernible] and the other class pieces working across the broader base. The investment in that, hopefully, will drive traffic to HUB24 regardless we'll get advocating support because we're trying to grow the market, help advisers serve their clients get more exposure. So we expect that product in itself will work, but there will also be benefits in the platform itself in terms of opening us up to new relationships.

Siraj?

Siraj from Citi. Just maybe on the expansion of the platform of platforms of the future. As you mentioned, the key benefit is on the core business, right? But your guidance still says this remains the same for FY '24. Should we be assuming -- why isn't that more in hiring?

The guidance we've got is for custodial fuel. So we've not had a noncustody for our guidance target, and that noncustomer itself doesn't drive revenue or financial results, it's a number of accounts. And so that's the approach we've got at this stage is always to have guidance out, and it has been to have it out 18 to 24 months out. So there's $11 million range there in that guidance target for custody for I think it's a sensible prudent target right now, particularly with what's going on in the marketplace.

So yes, so just to clarify, what I meant is you're investing in all these capabilities making an ideas, your core platform is more attractive [indiscernible] , et cetera. So should we be thinking that the floors, your $11 million to $40 million before you bought Class and all the other businesses. So shouldn't that be high end in some ways because core business an element?

Well, absolutely, aspirationally, we try to get higher flow surround. I think that when you're making guidance statements, you want to actually make sure they're prudent and sensible, particularly when we've got other things happening in the market. As I said earlier, we're sort of in uncharted territory to have had possibly $12 billion flows per annum. It's not been seen before. What is normal? Hard to tell, certainly with the current macro environment. So I think the statement is prudent, but our goal would absolutely lead to obviously, always with any guidance target, we generally always overshot anyway, hence we've revised would be to get towards the high end of that or above if we can as per action. But as it stands right now, it's the right target to be judicious.

A question for Jason Baxalta. On the earlier coaters, do you know what the asset pool is and like what the total size of the asset is by any chance?

In that special market?

Yes, special.

I do have those numbers or my team can remember. Siraj it's not at the top of my head.

Sure. That's okay. And last one, maybe for -- just for Kitrina, just in terms of the OpEx cost that you mentioned in latent as a group, do we still expect leverage to come through -- is that the way we should think about it?

Yes. So we're absolutely always looking at the revenue expenses and the underlying EBITDA in the jaws. And I think when we came out first half, we obviously, we have positive fuels in the first half, and we said that we would look to hold or improve those where we can. And that's exactly how we managed our expenses. The impact of the market is quite significant this half. And depending on what happens going forward. So the one thing I would call out is that impacted the market. However, the cost guidance that we gave you at year-end last year for this year still stand, and we've absolutely managed our expenses to that range that we gave you last year. And when we look out for full year '23, if you exclude some of the hires that we've done around the leadership team, where absolutely the expense growth year-on-year will be less next year than it was this year. So you will expect to take the operating leverage come.

Yes. Subject to market balances, but then also there's the positive in terms of the return to normal fees for cash. Nick?

Nick from Barrenjoey. Just a question back on the Class strategy. Can you talk through just the flow, so it's set up the documents in the -- does it end up investing in a custody platform on a trim down? And you just thinking about where those funds in deploying and then doesn't account and get involved where you're doing the business?

Yes. So it is a combined service. NowInfinity, Class and HUB24. So to set it up, we're using NowInfinity document service to administer the fund and manage the member balances, we're using Class and do the tax reporting. And we're using up to 4 IDPS account to do the investment. So as doing that normal way. We are running the SMSF admin and providing an accounting function for these incubated SMSFs, if you like. But as I said, over time, what we see happening is that through the Class ecosystem, these will be set for they go with our listing with the trustee and go to a different universe investment. So initially, investment universe will be the IDPS menu, which is far -- it's about double the size of the retail super menu. So it gives a lot more flexibility, the adviser in conjunction with the trustees of the fund will determine that investment strategy. But once they decide to go, I want to take control of it myself, I want to invest in a property, I want to do other things without blessing disconnect from our service, we'd love to retain them as a Class fire, we'd love to retain them as a HUB client for at least part of the money. Obviously, they'll go and do their own thing and with our blessings. So when they get to that magical number, maybe it's $500,000, we expect them to sort of move on [indiscernible] part.

So in terms of the fees, I think [indiscernible] have been on process [indiscernible] And then you've got the fees of a custody platform or send out many of it as well because they can't do certain [indiscernible].

No. No, it's the full IDPS account. They can use what we call our core account, the limited menu with a lower admin fee. So that's an available option. That's entirely up to the adviser to term, which is in the client's interest. In terms of the fees, we are looking at an all-encompassing fee that covers the underlying Class cost and NowInfinity cost, the audit, the self-managed fund administration, all of that in one fee. So it won't be done at the standard IDPS rate. It will be a premium on that, but it's akin to the retail type pricing.

So if I'm limited in terms of my investments to the IDPS [indiscernible] senior revenue [indiscernible] or just double the sort of rate deal? [indiscernible].

So there's [indiscernible] over and above the investment meeting. So this is household superannuation. So a young couple of high income earnings who have $100,000 in super today, each have a $200,000 SMSF account, and off they go on that journey. So at that point, that could go on to SMSF full on, incur the fees, it would be relatively expensive in the first few years for them. It's a possibility. It's probably likely they're going to wait 5 years or so until they get a much higher balance. So we're saying, look, you can get in there earlier at fees that are akin to what you pay in retail super, with the ability to aggregate as a household, with the ability to access a much wider menu, which is definitely attractive for some of the clients in the feedback we're getting. And then go on that journey of SMSF. If you are that aspirational client, you hear them around talking in the barbecue, I want to buy a property in my super. Then this is the journey here to get to that point.

[indiscernible] 2 points. So we're talking about a demographic that wants choice and control and flexibility. And so it plays to demographic in the want of the investor, and why not? The other thing is that the consequence of starting later is if you're moving from a retail fund into an SMSF, there's a tax event because you're changing trustees. So in effect, you may actually have a lower investable balance when you get to the end of that journey at that point. When you start where you intend to finish, you don't have that tax event. So there are other advantages in terms of maintaining [indiscernible] balance as well as those things. So the demographic and the tax consequences would be coming at a lower cost at an earlier entry point. It works into those types of customers.

We don't think this replaces retail super. We just think it's another option for advisers. It's another angle to sell. It's another input into the best interest duty. We think there is a cohort there. This is the feedback we're getting from the advisers. There is a cohort that this is relevant for.

And the strategy described is putting another tool in the advisers toolbox in terms of structures that they can sell into a flexibility and portability is important. What about products targeting the existing SMSF admin-based within Class because there's a significant amount of funds that [indiscernible] those 77 [indiscernible] accounts that you got there? What are you offering to them? Because it doesn't sound like they're going to get the accounting work on the back of the associate market set after the advice channel?

No, but we do think this is a lead source for that accounting market. We do think that if we can grow this market, it's very positive for the accounts in terms of being [indiscernible]. We're not targeting the existing traditional market. There are lots of casualties along the path, the financial institutions can easily access that market. That is not our plan. It is self-managed and DOI super for a reason. And so we respect that market. We believe Class has a long way to go to improve its service into that market, but we don't have plans to push the platform into that market. Having said that, by the way, that market already does use the platform. So I think we mentioned when we broadcast, 25% of FUA is from SMSFs, had a set on the board, 70-something percent of advisers use SMSF. So it's not like we're not in that market. The platform is already participating in that market. And if we can make the integration tighter, we might get a better outcome there, but it's not a clear drive for us to push into that market any more than we already do.

It's a choice that we hope will grow the market and support the evolution of the market, give advisers new lead sources. And there's a question on line about what proportion of advisers who would lead it to. And these are the type of clients that advice probably don't service or find difficult to service because they haven't got an economic solution. And so this is actually not going to cannibalize in general, the advisers curable -- it's going to give another lead source incubate or deal with the children of parents, but actually grow their business with an economic way of doing that. So that's the proposition.

Just one more because there was a comment about [indiscernible] being in only last year, excluding transition I think implies about $2.5 billion. You can correct me if I'm wrong.

Yes. So that is correct. We've also had that question online. So when you -- if you look at last June last year's quarterly, you'll see that we were at $3.9 billion, and that did include the ClearView transition [indiscernible].

There is no transitions this quarter?

Correct.

And then that's obviously below March. So not exhibiting the normal seasonal pickup you get into June. So are there any -- or is there a feedback from sales channels to that what advisers are doing [indiscernible].

Absolutely, we've done a deep dive across the group. And there's no red flags and advisers are busy. But having said that, adviser balances are lower. So new business balances are lower because of market movements. So you get that compounding effect. Advisers are busy. There's no [indiscernible]. Just generally across the board, there's a small dip in what's going on for them because of market uncertainty or dealing with client issues. So I think that it's just where we are with this part of the cycle. The question is, Nick, was last year, the quarter 4 and quarter 1 and 2 of '22 were phenomenal. Uncharted territory, what is normal for us. And of course, we try and aspire to do as best we can. So I think we've just got an economic time in a market time. Advisers are also busy chasing consents. So they have another piece of briefly implementation that don't get paid fees from 1 July as they don't chase all the consents. So they're busy doing a number of things and setting down clients and rebalancing, but there's no indicators of that being protracted at this point in time, although we're living in a volatile marketplace. So I think it's just the way this season is this year in this economic time.

James from Shaw. Just further to that, is there any change in the mix in terms of the gross outflows in terms of net flow number that the gross versus the outflows?

No, it's consistent patent. It's still -- we're tracking about 11 percentage outflows per year, which is still half that of a normal platform. So the indication is that there's no issue with business retention. That's normal pension retirement drawdown. So we probably have one of the lowest outflow percentage, if not the lowest in the market, I think. So that's fine. There's been no change in the mix. Yes.

And in terms of the Class $2 million synergy number you've spoken to, how much of that has been achieved today?

Corporate costs in Board and so forth...

Up to $2 million, yes, we're very comfortable with that. And it is -- I think it's probably roughly about $1.2 million of that will be in this year and then the rest of year, next year.

[indiscernible] market moves, I think, in the first -- in the third quarter, the sort of new market negative market impact was about minus 3.2% ASX, so they obviously seem to be more linkage to the [indiscernible] or the NASDAQ. I mean, it's obviously probably if you go 20% half year-to-date. Any observations about just product mix shifts to cash and what we should think about in terms of that marketing that particularly over the last couple of weeks?

So on the shift to cash. So generally speaking, when markets are sort of volatile, there's generally people think that there is a flight to cash in the cash cover. We've always said that our range is anywhere between 8% and 12%. And pre the inflation in the market moving, we were right at the very bottom of that. We have seen a bit of an uptick. But we're still not out of the 8% mark. We're still in the between 8% and 9%. So we haven't seen that mix come through. From our equities, we're still obviously predominantly focused on the Australian market, but we haven't necessarily seen a particular shift in any of the -- where people are placing their money. We did do a lot through when we saw the Q3 and just coming out of Q3, and there was nothing in there to suggest that people were moving around in the portfolio that was impacting that.

There's a question online about the mix to the fee cap. We Have a number of rate cards with different features, some paying transaction fees, some of which have different overall basket of fees. So we do have different rate cards in the marketplace. And hence, as Kitrina mentioned earlier, our fee cap is 1.75% on cash. It's a question on line about, hey, how close is that. Look, it does agree with our answer, it is lower than that because of the Phoenix, and we don't tend to disclose that for commercial reasons and for contract resisting customers. So it's below the 1.75 and it's because of that fee rate mix with different rate cards.

Just a question over here if I could. I think what today reminds us of is just a significant investment you make to [indiscernible] technology. And actually, that talks to the continuation of winning share in the market. I'm interested just in your thoughts around how you think the market will go in regards to a consolidation will be forward flows in light of the volatility in the markets.

Great question. I think we can -- we operate in a market where even in terms of volatility, people seek out advice. So typically, these businesses, whilst you get the volatility in the asset mix and that changes the results, you've still got this need for advice, there's need for people to invest the need to be able to secure their future. And so platform business is typically resilient in those [indiscernible] balances goes up and down. In terms of market consolidation, I think that when you look at the participants, and Jason talked earlier about 2 winners, if you look at the market participants, we're still living in an environment where institutional platforms are still trying to work out their strategy or their ownership. They're yet to retool or rebuild. In fact, there's a lack of clarity on all of those institutional platforms at the moment. And the mix, even if you look at the other nonbank institutions, there's work to do on their platforms as well. So from that perspective, a HUB has a clear strategy. We've got clear growth. We've got the highest level of adviser consideration. I expect we'll continue to see strong growth. unless the situation changes and some of those encumbered or platforms who wrote the last wave actually sought out their strategy, their ownership will actually rebuild or rekit because the gap between us and them in terms of functionality is expanding. So from that perspective, we're confident with those dynamics that will continue to grow.

Maybe just [indiscernible] the talent at the moment, because it's getting on [indiscernible] is that more a big gap that you're talking about [indiscernible]?

We're pretty good. Our attrition rates are lower than what's been reported in industry averages far lower. We've seen, obviously, there's activity out there. We've quite comfortable. Yes, we look after our staff when we do the right thing. We're growing staff. We've hired a lot of staff. So at this point in time, we're weathering that storm quite well. Yes, it's harder and more complex. Having said that, we're a great business with great prospects. So typically, we tend to win in that space. The attrition rates in the business have dropped down over the last few months. We've seen a slow trend down. So we're more comforted than alarmed. If you look, talk to interest, what's going to happen all these noises out there, from our perspective, we're doing well. James, then back to you, Siraj.

James from Credit Suisse. Just a question maybe to Kitrina. Just on the $10 million of synergies for Xplore. I wouldn't mind understanding a bit more around what you're including in that revenue side. So whether it's on flows or whether it's marginal cash. And then also why expense synergies are probably a little bit less than what you thought? What was what, I guess it can go quite flat?

So how [indiscernible]. So not the margin on cash for Xplore. So Xplore has a much, much lower percentage held in cash than the HUB24 platform. And equally, because we're doing migrations where most of the contracts with ANZ have actually now on [indiscernible]. And therefore, you can't have to hold its wholesale cash. So just there is a necessary upside there in the cash on the Xplore side. But on the fee and the net flows for Xplore, it's performing higher than we were expecting when we did the business case. That's the way to think about it. So Xplore sort of had lower growth than HUB24, and it was quite sort of single digits and it was quite consistent year-on-year. And since HUB24 has taken ownership, we've seen through the net flows from Xplore an uptick with [indiscernible]. So contributed to the benefits compared to the business case and what we told the market when we did the acquisition. And then on the expenses, side. I think we said when we got to the first half that we were at the sort of pointy end of the integration, which is when you're looking at the product, the migrations and the technology changes. And that's always harder for every platform and every business that's doing this. And so that is -- it is harder and it is taking longer, and so therefore, the expense benefits are going to come through a bit later than we were expecting. And so when we look at that, we're still expecting those expense benefits to materialize over the longer term, but it will just take us a bit longer together.

I think complexity and the business is growing more than we thought and the fact we had those 3 great quarters balancing our normal priorities of the integration is that we have to do actively. And certainly, there's customer opportunities in the Xplore book that are causing us to think about what gaps we be [indiscernible] we don't feel in HUB24 24. So in the middle of that. The first migration is still planned unless it's changed in the last few days, Craig, to go ahead on 1 July indicatives a red light, green light. But we were doing our first product migration on 1 July. And we've got some success of fund transfers planned for November. So we're making progress. It just may take longer, James.

And maybe just a follow-up question. I mean, like looking at, I guess, the stack of your business and which part to outsource and insource, I mean custody is currently using a third-party provider. Is there an option to kind of bring that in-house and add efficiency as you go through the migration?

There's definitely an option share that you're absolutely right, that we outsource it. And it's absolutely on the list of things that we look at and would it be an option. I think it sort of feeds into Andrew's comment on capacity and how much can the organization actually take on at any one time. And so where we are at the moment, that's probably not something that we'd add considering the projects and the migrations that we've got on to it, but it's absolutely something that we're aware of and continue to look at.

Siraj and folks, just a last call for questions. We're probably finishing up in a few minutes. But Siraj?

Thanks, Andrew. So just on adviser growth, there's a good slide showing that' it's a key forward indicator of flows, right? That has slowed to the third quarter because of the market volatility. Just, I mean, maybe some of the easy wins is done because of the banks have exited that post churn, so How do you get to that 75% coverage? What do you need to do to get the other advisers [indiscernible]?

Look, we do it in several ways. So we're actually in our budget, expecting to put on more salespeople for FY '23. And we'll -- we're also looking at how we target different markets. So in terms of our strategy, we have a key accounts process. We're hiring a Chief Growth Officer. We're now in several segments. So it's about having targeted marketing to each segment. It's about freeing up our sales force and changing how you might do hunting and gathering. So we're actually retooling the way the sales force works as well so that you're focusing your business development people on high-value relationships in development and you're servicing others differently. So the whole way we approach sales and marketing will change in the next few months in regard to that to help you get there. There are still when you look at those statistics that there are platforms who have achieved higher gross flows than HUB and network have in the past. And that's why I say there's room to move here if we get the servicing more we're right. And the pipeline is still very, very strong. Is it the first churn? Look, I would say there was 3 still a quarters. There's been a constant growth. I think there's a lack of certainty in the rest of the marketplace. And I think you'll see that play through again. So it's about getting the focus right at this point in time. So we are thinking that way, different products, different opportunities. The strategy we're talking about today will create more resonance for HUB. I think you see it incrementally change. There was a question on line about how does the cash fee differ from HUB? I will try that. It is a different arrangement. It is a different custody and a product issue in Xplore -- sorry, if Xplore -- when Xplore is transitioned over, it should moves into our product runway into the same arrangements. But the cash usage or percentage on Xplore is lower in some of the accounts given the structure in the MDA structure, it's a different percentage levels. So it is different, and we'll talk more about that if and when that happens as we do integration. One more online, Kitrina, about how we should think about the 32 bps revenue margin in FY '23. Not going to give guidance on revenue margin, but do you want to talk to that? [indiscernible] this increase in interest rates?

Yes. So like Andrew said, we don't give guidance on the revenue margin, but the way to think about it is there's some headwinds and some tailwinds. And so as we sort of mentioned on the interest rate impact and the fact that we're sort of -- whilst our fee on HUB24 is 1.75 and because of the mix of rate cards, we're slightly below that. We are at the cap. And therefore, that's a tailwind for the margin, which will -- it's good for the margin. And then trading volatility, we're not necessarily seeing significant trading volatility even though the markets are moving around, which implies that people are sort of more holding at the moment. But again, that can impact the margin. But at the moment, we're not seeing too much volatility in that, and it's quite consistent with last year for this year, and we're expecting the same trend into next year. And then on the admin fee tiering and the capping, I think like we said at the first half, normally, we expect see 1 or 2 bps of admin fee tiering coming through, which can lower the margin. We didn't see that in the first half because of the scale and basically just the scale of the portfolio and the speed that, that now comes through. And we've seen that trend continue into the second half. And there's nothing to say that, that won't continue into full year '23. Something that will sort of have a negative impact on the margin. It's a change in the cash rate agreement that we have, given where the curves are for deposit arrangements, it's highly likely that will follow the industry trend and have a lower rate that we get from the ADI provider, and that will impact the revenue margin. But like I say, that will be offset with the uplift in the cash fee being up the top and lower tier rank.

Thank you. Any last questions, folks?

One last one. The $175 million that you've got in the PDS you made a comment that you're just below that. Obviously, the [indiscernible] $145 million, $150 million max just do we read that as you've taken a bit more spread under the IBA right going [indiscernible] 5 bps?

No, we've not done that. We have 2 rate cards. And so when -- and so there was a rate change back in 2019 where we gave clients a choice of having accounts where their work paying transaction fees on managed fund trades and so forth or they kept paying those fees. So it's a bundle of fees that happen in 2019. And at that point in time, there was some up to that cap, and others not up to that cap. So that hasn't changed in that period of time. We've not adjusted that at all. Clearly, the market and the analysts and the report to someone in the room who want report on that the other day, when the ADI rate changes in December, we'll be receiving less income. But we have the ability to go up to a disclosed fee. We haven't decided how whether we'll do that as [indiscernible] have announced, we'll look at market pressures and maintain a good competitive product mix for clients, and we look at that point in time. So the cap building is there, but it's not our stated intention. At this stage, we'll talk about that if and when. Okay. Well, thank you, everyone, for coming along. Thank you everyone online. I hope you've got a lot of value out of that. It's great to have such good support from shareholders. We really value that support and your interest. And we'll see you -- you'll see our quarterly report in July, and we'll see you at year-end again. Thanks very much.