HUB24 (ASX:HUB) delivers record growth in December quarter FY22

Superannuation and investment service provider HUB24 Limited (ASX:HUB) has shared its market update today for the December quarter FY22.

Following the announcement, the shares of HUB were spotted trading a 1.53% high at AU$27.26 (12.29 am AEDT) with a market cap of AU$1.84 billion.

Record net inflows

In the December FY22 quarter, HUB24 reported net inflows of AU$3.6 billion, bringing 1HF22 net inflows to AU%6.7 billion. The company has recorded a 68% increase in the average monthly inflows from AU$627 million in FY21 to AU$1.1 billion in FY22.

Consistent growth has been delivered by HUB24 for net inflows from three consecutive quarters. The record performance reestablishes the leadership position of the company. It shows that the innovative solutions offered by HUB24 resonated with their clients and advisers.

In the December quarter, the company has signed 28 new distribution agreements. As per the Strategic Insights Data, HUB24 gained second place for quarterly and annual net inflows. 

Growth in Funds Under Administration (FUA)

Total FUA has grown to AU$68.3 billion in Q2FY22 with Platform FUA of AU$50 billion as at Dec 2021 (up 28% on PCP). The company also informed that PARS FUA is now AU$18.3 billion, up from AU$17.8 billion as of 30 September 2021.

Update on 1HFY22

Financial reports for 1HFY22 will be released with the following adjustments shortly by HUB24.

• AU$3.5 million expenses have been added to the financial accounts of 1HFY22 as the company predicts that the Special Performance Rights issued in FY21 will reach the stretch target FUA hurdles by FY25. The prediction has been made based on the record net inflows and FUA.
• Amendments will be observed in the provisional Purchase Price Accounting (reduced by AU$1.5 million), following the acquisition finalisation accounting for Xplore Wealth.

Business Updates

• Advice fee opt-in: existing and new clients can now opt-in to their advice fee online, and in addition to this, they can provide reporting and tracking of client consent.
• Record of advice has enhanced: This feature enables advisers to generate multiple client ROAs after introducing portfolio changes and placing orders simultaneously.
• com.au: The website was launched in December to enhance users’ experience.
• Class Limited acquisition: The acquisition continues to progress the scheme of arrangements sent to Class’ shareholders.