Strong final quarter sees HUB24 FUA up $32bn for FY24–25

In a quarterly update, the firm said funds under administration (FUA) are $136.4 billion, which comprises $112.7 billion on the platform and $23.7 billion in portfolio, administration and reporting services.

The 10 per cent increase in platform FUA during the quarter is driven by the $5.3 billion in net inflows, plus $4.9 billion in positive market movements.

Excluding the $1.2 billion in large migration from Equity Trustees, net inflows are $4.1 billion. HUB24 confirmed that the EQT migration is now complete, with $5.3 billion having been transferred to HUB24 during FY2023–24 and FY24–25.

It was announced in April 2023 that HUB24 had entered into a heads of agreement with EQT to provide custodial platform administration and technology solutions for EQT and Australian Executor Trustees clients with staged large transitions over 18 months.

Platform FUA is divided between 87 per cent in retail assets and 13 per cent in institutional ones.

During the quarter, the total number of advisers using the platform increased to 5,097, having surpassed 5,000 for the first time in the March quarter.

Over the whole financial year, net inflows are $19.8 billion, which it said is up 25 per cent on the prior corresponding period.

“Our record FY25 net inflows and ongoing momentum reflect strong customer advocacy. Operating in structurally growing markets driven by demographic trends and compulsory superannuation, HUB24 is well positioned for continued growth, supported by a strong pipeline of opportunities from new and existing relationships.”

During the quarter, the platform launched HUB24 Private Invest for high-net-worth advisers and their clients. Designed for wholesale clients, it provides easier access to wholesale investments, streamlined documentation, consolidated reporting, and administration of custody and non-custody assets.

Earlier this year, Morningstar flagged that competition is heating up between platform providers and that HUB24 inflows may lessen in the coming financial years.

In an analyst note, it said: “We maintain our forecast for reduced net inflows from fiscal 2026 onwards due to volatility and improved products from rivals. The moderating rate of net inflows and slower growth in flows per adviser, relative to the last three quarters, align with our view that prior outsize growth was largely cyclical – driven by a rebound in fund flows following weaker levels in fiscal 2023–24 – and is likely to cool.

“Given HUB24 remains relatively subscale to incumbent platforms and the tight regulatory scrutiny, we don’t expect the firm to win a price war, nor can it charge a premium for its products. Fee compression and growth investments are likely to limit the degree of operating leverage it can achieve.”