HUB -4.97%: Sold off today after releasing the 4Q22 net flows of $2.5bn and total Funds Under Administration (FUA) of $65.6bn, up +12% YoY. The quarterly numbers were pre-released and represented 21% of annual flows which is below the 31% skew in FY19 and 33% in FY21, and this we suspect is the source of the market’s discontent in the SP today aside from the general sell-off in tech. Total net flows for FY22 totalled $11.7bn which is +56% on FY21 and +137% on FY20 levels while the result compares very favourably to key peer Netwealth (NWL) which saw skinnier net flows of -$360m or -12% vs pcp at their 4Q22 update.
To give some perspective on this business, in FY18 they saw the same net flows in the full year as they did in Q4 alone, and trading on 18x EBITDA, we still think HUB is a ‘class’ act!
MM remains bullish HUB
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