Factors contributing to the decline in HUBs share price

Key Highlights:

• HUB24 secured top rankings in platform advocacy, tax optimization, and client reporting.
• Platform FUA as of June 30, 2023: AU$62.7 billion with AU$1.2 billion positive market movement.
• Net inflows for the quarter amounted to $2.1 billion, down 14.7% YoY, while Platform FUA increased by 5.5%.

Source: Kapitales Research

HUB24 (ASX: HUB) has delivered solid results amid economic uncertainty, with net inflows of AU$2.1 billion for the quarter, reflecting a 14.7% decrease compared to the previous corresponding period. The overall market has experienced softer flows, particularly in Investor Directed Portfolio Services (IDPS), with increased utilization of off-platform term deposits. However, superannuation flows have remained strong, displaying resilience to economic cycles.

As of June 30, 2023, HUB24's Platform Funds Under Administration (FUA) stood at AU$62.7 billion, including a positive market movement of AU$1.2 billion for the quarter. According to the latest available Plan for Life data, HUB24 maintains its leading position for quarterly and annual net inflows. The company's market share has increased to 6.05% as of March 31, 2023, up from 5.1% in March 2022, placing it in 7th position.

HUB24's customer base has expanded, with the total number of advisers utilizing the platform reaching 4,011 during the quarter, marking a 15.1% increase compared to the previous corresponding period. The company has secured 28 new distribution agreements, including significant opportunities with large boutique advice practices. Licensees and advisers have responded positively to HUB24's innovative product solutions and customer service proposition.

With a Total Funds Under Administration (FUA) of AU$80.3 billion as of June 30, 2023, comprising AU$62.7 billion in Platform FUA (up 26.2% compared to the previous corresponding period) and AU$17.6 billion in Portfolio, Administration, and Reporting Services (PARS) FUA (up 11.1% compared to the last corresponding period), HUB24 continues to solidify its position in the market.

Additionally, HUB24 has received recognition for its excellence in the industry. It ranked first in Overall Satisfaction and first in Ease of Doing Business and IT/Web Functionality in the 2023 Wealth Insights Report. In the Investment Trends 2023 Adviser Technology Needs Report, HUB24 ranked first for primary platform advocacy, tax optimization tools, and client reporting.

Furthermore, HUB24 successfully acquired my prosperity Pty Limited, which now operates as a business unit within the HUB24 Group, expanding its offerings and capabilities.

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