HUB24 Limited (ASX: HUB) posted its 2018 December quarter update today (i.e., 15 January 2019) in which the company reported record $1.5 billion net inflows for the December quarter. Following the news, the share price of the company went up by 6.112 percent as on 15 January 2019 (AEST 12:24 PM).
Despite the structural changes and distraction across the industry, the company was able to maintain its strong momentum and growth trajectory during the December quarter. The company recorded gross inflows of $1.8 billion in the December quarter which is 167.4% higher than the previous corresponding year. Further, the 2018 December quarter inflows are the highest for any quarter to date.
The company also informed that its business development activity was successful in securing new relationships and the strength of the company’s pipeline presents further growth opportunities.
The December quarter net inflows of the company include the successful transition of Fitzpatricks Private Wealth inhouse MDA to the HUB24 platform, which is the company’s largest transition to date. The transition was completed ahead of schedule providing evidence of the company’s technology capability and expertise in managing large and complex transitions.
During the quarter, the company also experienced growth from its adviser base as they win new clients and transition FUA (Funds Under Administration) from legacy platforms in order access the company’s market-leading functionality, creating value for their clients. The company’s FUA increased by 45.6 percent to $10,046 million as compared to the prior corresponding quarter. At the end of the 2018 September quarter, the company had 1,319 advisers which got increased by 1,456 in the December quarter.
In the announcement, the company also informed about its ConnectHUB offer which will allow advisers to integrate different external data sources in real time, including cash management accounts and annuities. This integration will enable advisors to tailor their platform experience and provide a consolidated view of wealth for their clients. ConnectHUB is supporting the company’s ongoing business development activities and will be rolled out to the broader market during the remainder of FY19.
During the December quarter, the company was chosen as a platform provider for Australia’s most established wealth management firm, Patersons Securities and one other large national broker. Further, the company also signed new agreements with ten new licensees including national advice group AdviceIQ comprising more than 30 authorized representatives and Portfolio IQ, a collection of 25 smaller licensee businesses. During the December quarter, HUB24 launched five new branded versions of the platform and one new white label.
The company also expanded its menu and increase market-leading managed portfolios offer by adding 77 new portfolios and ten new portfolio managers to its menu. Out of 77 new portfolios, 33 are single-sector portfolios, and 44 are multi-sector portfolios.
Meanwhile, in the last six months, the share price of the company decreased by 4.19 percent as on 14 January 2019. HUB’s shares traded at 13.020 with a market capitalization of circa $763.05 million as on 15 January 2019 (AEST 1:12 PM).
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