HUB 24 (HUB) – Another record quarterly
HUB -0.21%: HUB has announced another quarterly net flows record of $1.9bn which is up ~40% on this time last year and ~11% on the quarter. They now have $35.6bn on the platform as a result of contributions from both significant net flows and favourable market movements. Further to that, they’ll also benefit from another ~$1.3bn transitioning in 4Q21, a little later than expected, while they’re developing a private label investment and super product for IOOF which is also expected to launch around the same time. HUB now have market share of 2.5% , or 4.3% if we include Xplore which has now transitioned to HUB’s corporate governance model and the two teams are working together.
To give some context on the numbers, last week we saw Netwealth (NWL) post quarterly net flows of $2.3bn , yet it has a market capitalisation more than double that of HUB. Looking forward, our focus now is on HUB achieving management’s guidance of FY22 FUA of $43b – $49bn, which is obviously a big number and implies very strong growth on FY21.
Looking longer term, given the big regulatory shifts in the wealth management space, we’re seeing a big transition of advisers towards private practices and that is likely to continue driving net flows to independent platforms in MM’s view. The 20,674 advisers at Dec 2020 (12% annual decline) is slated to fall to just 13,000 by end of 2023 , according to Adviser Ratings.
