Inflows down, adviser numbers up at HUB24

HUB24 has reported $1.9 billion of platform net inflows for the March quarter, a 28.6 per cent reduction compared to the previous corresponding period (pcp).

In an update issued to the ASX on Tuesday, HUB24 declared that its pipeline of opportunities continued to grow during the quarter, with 27 new distribution agreements signed and a 9.2 per cent increase in the total number of advisers using the platform to 3,748.

Meanwhile, the firm’s total funds under administration (FUA) grew by 12.6 per cent to $76.9 billion, including a 16.5 per cent increase in platform FUA to $59.4 billion and a 1.0 per cent lift in portfolio, administration and reporting services (PARS) FUA to $17.5 billion.

“During the quarter, the business has achieved solid results in the context of continued uncertainty in the macro-economic environment and ongoing market volatility affecting adviser and client sentiment,” HUB24 said.

Despite the inflow decline seen during the quarter, HUB24 noted that it continues to rank first in the industry for quarterly net inflows and has now moved from second to first place for annual net inflows, according to the latest Plan for Life data.

The firm held a 5.85 per cent market share as of 31 December 2022, up from 4.9 per cent as of December 2021, putting it in seventh place in the industry.

Regarding developments during the March quarter, HUB24 noted that it had entered into a heads of agreement with Equity Trustees to provide custodial platform administration and technology solutions for EQT and AET trustee services clients.

“The scope of the agreement covers staged large transitions totalling approximately $4 billion FUA indicatively over the next 18 months. Subject to detailed planning and final agreements being completed, the company will provide further updates,” it said.

“The current platform FUA target (excluding PARS FUA) guidance of $80–$89 billion at FY24 remains unchanged.”

HUB24 also indicated that it was committed to continued investment in enhancing its platform offer to deliver outcomes for advisers and their clients.

Changes to the platform during the March quarter included the addition of a new tax optimisation alert functionality and enhancements to the firm’s reporting feature HUB24 Present.

“Following the completion of the pilot, HUB24 SMSF Access, the first joint product development initiative leveraging the combined capability of HUB24, Class and NowInfinity, was launched to market in February,” the firm added.

“The new SMSF product solution is designed to meet the needs of clients who are keen to access the benefits of a cost-effective SMSF solution has been well-received by advisers.”

Additionally, HUB24 confirmed that it had signed a credit approved term sheet with Commonwealth Bank to consolidate and transition the banking arrangements of both HUB24 and Class, which the firm completed its acquisition of last year, to the big four bank.

Jon Bragg

Jon Bragg is a journalist for Momentum Media's Investor Daily, nestegg and ifa. He enjoys writing about a wide variety of financial topics and issues and exploring the many implications they have on all aspects of life.