Investors have shown strong confidence in Hub24, driving up the investment platform provider’s share price following the release of its robust second-quarter update.
The update revealed impressive growth, with Hub24’s platform funds under administration (FUA) rising 8% to reach $98.9 billion for the quarter. This marks a 36% year-on-year increase, highlighting continued momentum.
Key to this growth were record net inflows of $5.5 billion for the quarter, a 23% increase compared to the same period last year, alongside a positive $1.8 billion boost from market movements. Notably, $1.5 billion of these inflows were attributed to large migrations from EQT. Excluding these large migrations, net inflows for the second quarter of FY 2025 stood at $4 billion, marking a 47% increase year-on-year and maintaining consistency with Q1’s inflows.
Hub24’s expansion was further supported by 40 new distribution agreements signed during the quarter, alongside a 14% rise in the number of advisers using the platform, which increased by 166 to reach 4,886 advisers.
A further boost to Hub24’s outlook comes from industry data, which shows the company ranked first for both quarterly and annual net inflows, as well as recording the largest annual market share gains among platform providers. As of the end of September 2023, Hub24’s market share rose to 7.9%, up from 6.6%, and the company now ranks seventh overall in the sector.
However, the update also highlighted some challenges. Hub24 announced that its Xplore Wealth Managed Discretionary Account (MDA) services will be discontinued next year. Despite approximately $2 billion of FUA within the MDA, management expects the closure to have an “immaterial” impact on the company’s earnings.
Related topics:
Dollar Holds Steady as U.S. Inflation Moderates, Yen Nears Intervention Threshold
GBP/USD’s Reaction to US Data and BoE Move: A Rebound with Constraints
Dollar Holds Steady as U.S. Inflation Moderates, Yen Nears Intervention Threshold
