HUB24 announces $5.5bn inflows, plans to close Xplore MDA

In its second quarter results announcement on the ASX on Tuesday morning, HUB24 announced that its total funds under administration (FUA) reached $120.9 billion as at 31 December 2024 (up 33 per cent on the prior corresponding period).

The result comprised Platform FUA of $98.9 billion (up 36 per cent on pcp) and Portfolio, Administration and Reporting Services (PARS) FUA of $22.0 billion (up 17 per cent on pcp)

HUB24 said this was driven by record quarterly net inflows of $5.5 billion (up 23 per cent on pcp) and “positive market movements” of $1.8 billion. The net inflows also included $1.5 billion of large migrations from Equity Trustees (EQT).

The EQT migration has reached $4.1 billion in total to date, with HUB24 expecting a total of about $5 billion and the remainder planned for 2HFY25.

Excluding large migrations, net inflows of $4.0 billion for Q2 FY25 were up 47 per cent on pcp, broadly in line with the net inflows in Q1 FY25.

Combined with the $4 billion from the first quarter of FY25, HUB24’s half-year net inflows are $9.5 billion, with the firm saying this reflects its “continued market leadership and focus on delivering customer service excellence”.

“HUB24’s proposition continues to resonate with licensees and advisers with the business uniquely positioned to capture opportunities from new and existing client relationships,” it said.

“The strong net inflows and market movements in 1HFY25 are tracking ahead of our FY26 FUA target assumptions. With a strong pipeline and momentum across all customer segments, we remain confident in meeting our FY26 Platform FUA target of $115 – $123 billion and are well-positioned for future growth.”

The total number of advisers using the platform also increased by 166 to 4,886 (up 14 per cent on pcp) on the back of 40 new distribution agreements signed during the quarter.

The firm also announced that it is set to shut down the Xplore Wealth managed discretionary account (MDA) services by 31 March 2026.

“Engagement with financial advisers is underway to explore alternative options including moving to the HUB24 Platform,” HUB24 said.

“There is approximately $2 billion of FUA within Xplore Wealth MDA and given the nature of this solution there is potential for outflows as a result of the closure.

“The contribution of Xplore Wealth MDA to Underlying EBITDA is immaterial.”

Providing a business update, HUB24 said it would continue to focus on innovation and delivering “enhanced solutions that drive productivity for advisers and create value for their clients”.

“During the quarter, HUB24 continued to enhance its market-leading reporting capabilities with Engage, the next evolution of HUB24 Present. Currently in pilot, Engage leverages HUBconnect capability, enabling advisers to efficiently deliver increasingly customised and engaging client reporting,” it said.

“Following the release of advice fee consent enhancements in Q1 FY25, HUB24 rolled out the next phase of capabilities to manage client fee arrangements more efficiently. This included the launch of bulk fee processing enabling advisers to process fee consent requests across multiple client accounts at one time, and the introduction of customisable fee templates for advisers to drive practice efficiencies.”