How InvestSMART Plans to Scale $750m Funds with AI and SMSF Launch
InvestSMART Group Ltd reports a solid half-year performance with funds under management reaching $750 million and a growing subscriber base, while outlining plans to enhance its digital wealth platform with AI and new services.
- Funds under management increased to $750 million as of December 2025
- 15% growth in Professionally Managed Accounts investor numbers during 2025
- Stable subscriber retention rate of 77% with a recent 20% price increase
- Strategic focus on platform scalability, AI integration, and SMSF service launch
- Strong balance sheet with $8.5 million cash and disciplined cost management
Robust Growth in Funds Under Management
InvestSMART Group Ltd has reported a notable increase in its funds under management (FUM), reaching $750 million by the end of 2025. This growth reflects a 25% compound annual growth rate over five years, underscoring the company’s successful expansion in Australia’s competitive digital wealth management sector. The surge in FUM is driven largely by the 15% rise in investor accounts within its Professionally Managed Accounts (PMA) platform, which now serves as the core engine for its digital financial advice offering.
Diversified Product Suite and Subscriber Stability
The company’s portfolio includes low-cost, diversified ETF portfolios under the InvestSMART brand and four ASX-listed active ETFs managed by Intelligent Investor. The subscription-based research content, featuring insights from renowned commentator Alan Kohler, maintains a strong retention rate of 77%. Despite a 20% price increase implemented mid-2025, the subscriber base remained stable, with many renewing ahead of the hike, indicating solid customer loyalty and perceived value.
Investing in Technology and Platform Enhancements
Looking ahead, InvestSMART is prioritising investments in platform scalability and administrative automation, with a particular emphasis on artificial intelligence integration. These technological advancements aim to improve customer onboarding, service delivery, and advice quality, positioning the company to handle increased scale efficiently. The planned launch of a Self-Managed Super Fund (SMSF) service is expected to broaden its appeal, especially among high net-worth clients seeking tailored financial advice.
Strong Leadership and Financial Discipline
With a stable executive team led by CEO Ron Hodge and a board featuring respected figures such as Paul Clitheroe AM and Alan Kohler AM, InvestSMART benefits from experienced leadership. The company maintains a strong balance sheet, holding $8.5 million in cash, and continues to exercise disciplined cost management while selectively investing in growth initiatives. This financial prudence supports strategic optionality and resilience amid evolving market conditions.
Outlook and Market Positioning
InvestSMART’s integrated digital wealth platform, combining content, tools, and investment products, positions it well to capture the growing demand for accessible, low-cost investment solutions in Australia. Its focus on enhancing customer experience and expanding brand reach through targeted marketing and PR efforts, including ETF awards, signals a confident approach to scaling the business sustainably. However, the impact of new technology investments and service launches will be critical to watch in the coming periods.
Bottom Line?
InvestSMART’s strategic investments in technology and service expansion set the stage for sustained growth, but execution risks remain.
Questions in the middle?
- How will AI integration tangibly improve customer acquisition and retention?
- What is the expected timeline and impact of the SMSF service launch on revenues?
- Can InvestSMART maintain its low attrition rate amid rising subscription prices?
