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Key Points:
- HUB24 achieved record Q1 FY25 platform net inflows of $4.0 billion, excluding large migrations.
- Total FUA reached $91.6 billion, driven by net inflows and market movements.
- Strategic alliance with Reach Alternative Investments expands access to high-quality private equity and private credit investments.
HUB24 Limited (ASX:HUB) has reported a robust start to the 2025 financial year with record-breaking net inflows and continued platform enhancements. The company’s Q1 FY25 results show strong growth in platform Funds Under Administration (FUA), strategic business developments, and a focus on customer-centric innovations.
Platform Net Inflows and FUA Growth
During Q1 FY25, HUB24 achieved record platform net inflows of $4.0 billion, an impressive 44% increase compared to the same period last year. This achievement reflects the company’s growing market leadership and the positive reception of its services by financial advisers and clients. Notably, these inflows exclude large migrations, underscoring the strength of HUB24’s organic growth.
As of September 30, 2024, HUB24’s total FUA reached $91.6 billion, representing an 8% growth over the quarter and a remarkable 41% increase year-on-year. Positive market movements contributed an additional $3.1 billion to FUA during the period. The company also signed 44 new distribution agreements and saw a significant rise in the number of advisers using its platform, which grew by 195 to a total of 4,720, a 17% increase on the previous year.
In addition to these impressive results, HUB24 ranked first for quarterly and annual net inflows according to the latest Plan for Life data. Its market share increased to 7.7%, up from 6.3% as of June 2023, placing it in seventh position overall among platform providers.
Progress on EQT Migrations
HUB24 also made progress on the migration of FUA from Equity Trustees (EQT). A further $1.5 billion of FUA was migrated in early October 2024, bringing the total migrated amount to $4.1 billion. HUB24 expects the migration process to be completed by the end of FY25, with a total of approximately $5 billion in FUA from EQT. These migrations are expected to further bolster HUB24’s growth trajectory, positioning the company to meet its FY26 FUA target of $115-123 billion.
Strategic Alliances and Business Updates
As part of its strategy to provide innovative investment solutions, HUB24 announced a strategic alliance with Reach Alternative Investments. This partnership includes a minority equity investment in Reach, a firm specializing in providing Australian investors with access to high-quality private equity and private credit investments. Traditionally, these types of alternative investments have been difficult to access in Australia, but through this collaboration, HUB24 aims to co-design new investment options that meet the growing demand from advisers and clients for alternative assets.
Additionally, HUB24 continued to enhance its platform capabilities to support advisers and their clients. These updates include the launch of pre-populated advice fee consent forms and a new digital dashboard that allows advisers to manage, track, renew, and request advice fee arrangements more efficiently. These features aim to increase productivity for advisers while improving the overall client experience.
HUB24 has also rolled out enhanced cash management capabilities, providing clients with faster access to deposits and improved payment functionality. These enhancements reflect the company's ongoing commitment to delivering service excellence and leveraging technology to improve its platform.
Class Ignite Conference and Enhancements
In September, HUB24’s subsidiary, Class, held its flagship industry conference, Class Ignite. The event attracted over 400 delegates, providing a platform for networking and education, particularly for the Self-Managed Super Fund (SMSF) segment. Significant product enhancements were announced at the event, including the launch of direct registry feeds and a new client interface developed using myprosperity capabilities. This new interface is set to roll out progressively throughout FY25 and is expected to further strengthen HUB24’s market leadership by enhancing the client experience.
Looking Ahead
HUB24’s strong performance in Q1 FY25 reflects its growing dominance in the wealth management industry, underpinned by record net inflows, strategic partnerships, and continuous platform innovations. The company remains confident in achieving its ambitious FY26 FUA target, supported by a strong pipeline of opportunities across all customer segments.
