Hub24 shares rise on Q1 inflows growth
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More news: Hub24 shares advanced in morning trade on the ASX after the investment platform reported funds under administration (FUA) growth in the first quarter of FY25, driven by total platform net inflows of $4 billion.
Hub24 shares were up 2.5% to $64.99 by 11:50am AEDT, having nearly doubled in value over the last 12 months.
RBC Capital Markets’ analyst Jack Lynch said Hub24's result was "strong", with underlying net inflows of $4 billion coming in 22% ahead of RBC's forecasts.
FUA also beat to RBC (1.9%) and consensus (1.5%) estimates, with positive market movements better than analysts expected.
E&P Capital analyst Olivier Coulon said he would expect consensus estimates for net flows in FY25 to increase by over 10% following Hub24's result.
Hub24 reports Q1 net inflows of $4 billion
The news: Investment platform Hub24 reported a boost to funds under administration in the first quarter of FY25, driven by platform net inflows of $4 billion.
The numbers: Total FUA grew 37% year on year to $113 billion. This included platform FUA of $91.6 billion, which rose 8% quarter on quarter and 41% year on year. Portfolio, administration and reporting services FUA was up 21% year on year to $21.4 billion.
FUA growth was driven by platform net inflows of $4 billion during the quarter, up 44% compared to the prior corresponding period, as well as positive market movements of $3.1 billion. This excluded large migrations.
Hub24 said that it signed 44 new distribution agreements during the quarter, and the total number of advisers using the platform increased by 195 to 4,720. The platform's market share increased to 7.7%, up from 6.3% at 30 June 2023.
Hub24 noted that it expected another $5 billion of FUA from EQT migrations by the end of FY25.
The company said it remains confident in meeting its FY26 platform FUA target of $115 billion to $123 billion.
The context: The quarter also saw Hub24 announce a strategic alliance with Sydney private equity firm Reach Alternative Investments, comprising minority equity investment and agreement to collaborate to deliver broader access to alternative investment options.
What they said: "The strong start to FY25 with record quarterly net inflows (excluding large migrations) reflects Hub24's continued market leadership and focus on delivering customer excellence," the company said in a statement.
"Hub24's proposition continues to resonate with licensees and advisers, delivering opportunities from both new and existing client relationships," it said.
The sources: ASX announcement, RBC Capital Markets research, E&P Capital research
