Financial services company, HUB24 Limited (ASX: HUB) made an announcement on 8 January 2019 stating that its investment and superannuation platform has reached a new fund under administration (FUA) milestone of over $10 billion. Following this news, the share price of the company increased by 5.398 percent as on 8 January 2019. [optin-monster-shortcode id="swikrbu1d9j9aq0o4cko"]
At the end of the financial year ended 30 June 2018, the company was having $8.3 billion in FUA, and in the following six months the company has gained around $1.7 billion in FUA and thus reaching to the milestone of $10 billion as at 31 December 2018. As per the announcement, the company is experiencing strong growth, and it has maintained the fastest rate of growth in the industry in percentage terms relative to its size. According to the latest available data from Strategic Insights, HUB24 is at the second place in terms of quarterly net inflows as at 30 September 2018.
Despite facing difficult market conditions, the company’s market-leading platform has demonstrated continuous growth in the first six months of FY 2019 on the back of strong flows from both existing advisers and new relationships. As per the company’s Managing Director Mr. Andrew Alcock, despite facing structural change and distraction across the industry, the company was able to maintain its position as the platform provider with the fastest growth rate in the market. He also informed that advice networks and individual practices are continuing to choose HUB24 because of its commitment to constant innovation, market-leading technology, and superior customer service.
As at 31 December 2015, the company had $2.4 billion in FUA, and in the time span of three years, the numbers have jumped up to $10 billion, with the number of advisers using the HUB24 platform increasing from 556 to 1,456. The company’s Specialist platforms have achieved 67 percent share of annual market inflows in FY 2018, and as per the September 2018 data, the Specialist platforms have continued their trend of increasing their share of net inflows.
In the FY18, HUB24 signed various new white-label platform agreements which includes an agreement with Fitzpatricks Private Wealth which successfully transitioned $725mn of FUA from their in-house MDA solution to the HUB24 platform in early December.
Further, the company has recently launched branded platform solutions for various national advice groups including AdviceIQ and PortfolioIQ. These groups have selected HUB24 for its ability to provide a flexible platform solution that catered to the needs of their advice networks. Further, the company is progressing its ConnectHUB offering which is currently in pilot with several advisers. ConnectHUB will allow advisers to integrate multiple external data sources in real time and it will provide a consolidated view of wealth for their clients.
Meanwhile, in the last one year, the share price of HUB24 increased by 8.44 percent as on 7 January 2019 and is trading at a PE multiple of 90.30x. HUB’s shares traded at $12.30 with a market capitalization of circa $725.74 million as on 8 January 2019 (AEST 12:51 PM).
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