Fiducian Group (ASX:FID) executives told shareholders the company delivered higher funds under management, advice and administration (FUMA) and stronger earnings in the latest half, citing market gains and continued net inflows from its adviser network. Speaking on the company’s update call, management also discussed technology investments, progress in its financial planning business, and an ongoing regulatory matter tied to a closed investment fund.
FUMA growth and higher underlying profit
Chairman of Fiducian Services and CFO Rahul Guha said FUMA increased about 9% to AUD 15.6 billion over the six-month period, attributing the rise to “market improvement” and net inflows of AUD 178 million. Guha said the inflows came from the company’s own financial advisers.
Management pointed to balance sheet strength, with AUD 35.7 million in cash, which Guha said provides capacity for acquisition opportunities and other potential needs.
Dividend and platform fee changes
Guha said the company declared a dividend of AUD 0.255 per share, representing 70% of underlying net profit. He also noted the company “was able to absorb the platform fee reduction from July 1, 2025 onwards,” and said Fiducian reduced the number of tiers in its platform fees, which he said helped advisers and their clients.
In describing business segment performance, Guha outlined three core areas:
- Platform administration: average funds under management of AUD 4.2 billion in the half, generating annualized margins of 57 basis points, inclusive of fee rates, cash margin and expense recoveries.
- Funds management: average FUM of close to AUD 6 billion in the first half, with annualized margins of 51 basis points after underlying manager fees.
- Financial planning: salaried advisers managing AUD 2.6 billion in funds under advice at an average fee of about 55 basis points; the franchise segment at AUD 2.7 billion, where Guha said Fiducian retains about 8–9 basis points, with additional franchise-related revenue of AUD 2.9 million in the half.
Net inflows, new clients, and Auxilium
Guha emphasized what he called the consistency of platform net inflows over the past five years, contrasting that with net outflows he said were seen at many larger platforms over recent years. He said net inflows were supported by a mix of salaried and franchise advisers and a “very strong mix” of new clients, estimating 60%–70% of incoming money represented brand-new clients.
Management highlighted marketing campaigns, website leads, and referral arrangements as contributors to new business. Guha also discussed the company’s “badge offering and Auxilium offering” aimed at independent financial advisers (IFAs). He said the Australian market includes about 16,000 financial advisers, with about 10,000–11,000 considered independent, and said Fiducian is targeting that segment—particularly smaller advice practices.
According to Guha, funds from IFAs across “the badges, the core platform, and Auxilium” total about AUD 550 million. Managing Director Indy Singh described Auxilium as “in its nascent stage” but “growing,” adding that the company has undertaken system and software development to meet IFA needs and is using additional overseas testing resources. Singh said capturing even “a small fraction” of the independent adviser market could be meaningful for shareholders.
Technology investments, AI initiatives, and adviser headcount
Guha said Fiducian operates three main systems—Fast Track (platform administration), FORCe (financial planning software), and Fiducian Online (reporting)—with an emphasis on adviser and client efficiency and cybersecurity. As one example, he said multi-factor authentication was rolled out roughly four years ago.
Executives also discussed the use of AI to improve planning workflows. Guha described a current process that can take up to five days from meeting notes to a statement of advice, and said Fiducian is trialing a system that could reduce elements of that documentation to minutes, followed by adviser review. Singh said the company plans to introduce AI “agents” to advisers at a March practice development day to help conduct interviews, create financial plans, and generate records of advice, with the aim of improving productivity and helping financial planning become profitable on its own.
Guha said the company ended the year with 68 financial advisers, down from 77 six months earlier, but attributed most of the reduction to timing issues. He said five advisers were temporarily taken off the register due to education requirement gaps tied to changes effective July 1, 2026, and are expected to return after completing bridging courses. He also said additional departures included one franchisee who was exited and another who retired, with Fiducian acquiring that adviser’s client portfolio.
Despite the headcount change, Guha said the company still recorded AUD 178 million in net inflows and growth in funds under advice. He also noted Fiducian’s advice fees were “roughly maybe 20%–25% lower” than the industry, and said the company expects to narrow that gap over time.
Regulatory matter tied to a closed fund and other updates
Singh addressed an ASIC-related court matter connected to a fund the company closed after operating for nine years without generating profits for the company, though he said clients earned around 7.5% a year. He said the fund totaled AUD 15 million when it closed and involved about 160 clients. Management said no clients lost money and that, on average, investors received their money back plus additional gains; Guha said clients received “86% more on average.”
Singh said the regulator “went straight to court” without what he described as an infringement notice or discussion, and that a mediation process has now been proposed. He said the company would prefer to resolve the matter rather than pursue litigation and indicated it may accept liability as part of a mediated settlement. Guha said there were no other funds the company was aware of that were under investigation by regulators.
On costs, Guha said the company spends roughly AUD 3 million per year on system development and that these costs are expensed through the profit and loss statement rather than capitalized on the balance sheet. Management also discussed the accounting impact of AASB 16 lease standards and said underlying profit adjustments are made to reflect cash rent outflows. Singh said the company had expensed close to AUD 1 million in legal costs over the last 12 months related to the ASIC matter.
Asked about acquisition strategy, Singh said Fiducian is open to larger deals that fit its model but continues to pursue smaller acquisitions, including structures where a vendor is paid only if clients transition. Guha added that smaller acquisitions can be absorbed with minimal incremental expense and may generate additional revenue synergies if clients adopt Fiducian’s platform and funds offerings.
In concluding remarks on risks, Singh cited cybersecurity as his primary concern and also pointed to market declines as a risk that can reduce inflows and asset values, which in turn affects fee revenue.
About Fiducian Group (ASX:FID)
Fiducian Group Ltd, through its subsidiaries, provides financial services in Australia. It operates through Funds Management, Financial Planning, Corporate Services, and Platform Administration segments. The company provides investor directed portfolio and separately managed accounts services; and acts as the trustee of fiducial superannuation services. It also offers fiducial funds; financial planning services; client account administration platforms; and wrap platform administration services. In addition, the company develops IT software systems for financial planning; and offers financial advisory services, such as cash flow management, debt reduction, planning retirement, estate management, and aged care, as well as provides platform solutions and SMSF administration services.
