HUB +3.98% rallied today following its 1Q27 update, with continued growth in FUA and adviser numbers providing some reassurance after a sharp selloff. This was an important quarter for HUB following softer 2H26 fund flows and, more recently, Netwealth’s (NWL) downgrade to FY27 inflow guidance, which raised the question of whether the slowdown across the sector was cyclical or something more persistent.
Key 1Q27 highlights:
- Total FUA: A$168.6bn, up 15% YoY.
- Platform FUA: A$143.7bn, up 18% YoY.
- Platform net inflows: A$3.98bn, down 23% YoY.
- Platform gross inflows: A$8.64bn, down 2.7% YoY.
- Advisers using the platform: 5,860, up 12% YoY.
- New licensee agreements: 45 signed during the quarter.
When we last wrote about HUB after its FY26 result, the central question was whether slower 2H flows were simply the result of macro uncertainty, as management argued, or whether the rate of growth was beginning to structurally moderate. An important question given HUB was still trading on a premium multiple, and lower growth generally means a lower multiple.
Netwealth added weight to those concerns last week, cutting FY27 net inflow guidance from $18–20bn to $17–19bn, while quarterly inflows of around A$2.6bn were well below expectations. HUB was sold off in sympathy, with investors understandably extrapolating weaker flow momentum across the sector, however HUB net inflow number today of $3.98bn comfortably beat NWL.
Today’s result is better than feared, but it does not completely put that debate to bed. FUA continues to grow strongly, adviser numbers remain healthy and 45 new licensee wins reinforce HUB’s strong competitive position. However, net inflows were still down 23% on the prior year, so the velocity of growth has clearly moderated.
The difference now is valuation. HUB is around 40% below its 12-month high and has already undergone a significant de-rating. We still view HUB as the quality leader in the space and prefer it to NWL, given its stronger adviser growth, broader earnings base through Tech Solutions and superior operating leverage.
While we would like to see net inflows stabilise and reaccelerate over coming quarters, today’s update suggests the structural growth story remains intact.
MM remains bullish on HUB around the $68 area
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