Hub24’s Shares Fall After Flat Net Inflows in Fourth Quarter

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By Alice Uribe

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SYDNEY– Hub24 Ltd.’s shares fell Tuesday, after it issued a market update that showed broadly flat inflows for the fourth quarter amid market volatility.

The investment-platform company’s shares fell 6.6% to A$22.16 after hitting A$22.06 earlier, leading declines from peers Netwealth Group Ltd and Praemium Ltd., which fell 4.3% to A$12.28 and 1.5% to A$0.68, respectively.

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Hub24 said that for the full year to June, it recorded platform net inflows of 11.7 billion Australian dollars (A$7.96 billion), up almost 32% compared with the previous year, but its platform net inflows for the fourth quarter sat at A$2.5 billion , which was broadly flat on the previous corresponding period, excluding large transactions.

At the same time, Hub24’s total funds under administration was A$65.6 billion at end-June, which was down from A$68.3 billion at end-March. Platform funds under administration was A$49.7 billion at end-June, which Hub24 said was hurt by negative market movement of A$3.8 billion for the quarter.

“During the quarter advisers have been focused on supporting their clients through recent market volatility as well as ensuring they have met their regulatory obligations for ongoing advice fee consent requirements which are now in force,” Hub24 said Tuesday.

A slowdown in funds flow was an industry phenomenon rather than being specific to Hub24, some analysts said.

“This gives us confidence that flows will likely recover into FY 2023-25 ​​underpinning our positive view on both Hub24 and Netwealth,” Credit Suisse analyst James Cordukes said in a June research note.

Credit Suisse said that it has a preference for Hub24 due to its larger earnings before interest, taxes, depreciation, and amortization margin expansion opportunity.

Write to Alice Uribe at [email protected]

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Credit: www.marketwatch.com /

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