HUB +11.04%: A strong second-quarter results with total Funds Under Administration (FUA) reaching a record $120.90 billion.
Key highlights:
- Total FUA A$120.90 billion, +33% y/y
- Platform FUA A$98.87 billion, +36% y/y
- Platform net inflows A$5.46 billion, +23% y/y
- Number of advisers 4,886, +14% y/y
Platforms like HUB are benefitting from several favourable conditions at the moment. Rising markets increase asset prices leading to higher FUA and higher interest rates allow the business to charge higher fees on client cash balances.
We’re continuing to see an industry-wide shift away from incumbents (Macquarie, BT, AMP) to tech-focused platforms – it’s the perfect storm for HUB right now. We like the business and the platform space more broadly, but prefer to wait for the Feb result to see if the FUA figures feed through to bottom line before we consider buying the stock.
MM is cautiously bullish on HUB
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