While the likes of Stake, Selfwealth and Superhero are fighting for a slice of the investment platform market share at the bottom end, wealth management company HUB24 (ASX: HUB) has emerged as Australia’s fastest growth platform provider by targeting the top end of town.
Over the next 30 years, more than $6 Trillion in wealth is expected to be transferred from the Baby Boomer generation to their tech-savvier beneficiaries where HUB24 is in pole position to facilitate the mass intergenerational wealth transfer.
The process has already commenced with HUB24 reporting $3.6 billion in net cash inflows to their platform which contributed to $81.6 million in revenue for the Half Year ended 31 December 2021 – a 72% increase on last year.
The big influx in Funds Under Administration towards HUB24 continues to be driven by their customer-centric approach to investing where the platform gives its customers more control over their wealth portfolios than traditional means. For the older generation, this means handing over complete control of your wealth to a financial advisor whereas HUB24 offers its customers direct access to investment opportunities around the world without having to pick up the phone and spend 30 minutes verifying your identity.
By continuing to make customer-focused upgrades to the HUB24 platform, not only are they seeing a huge influx of wealth moved onto their platform, the Company is seeing big returns themselves – reporting a 103% increase in net profit after tax of $14.2 million.
Shareholders were duly rewarded with a 7.5 cents per share fully franked interim dividend, a 67% increase on last year.
“We’ve delivered record net inflows and strong financial results including an increase of 80% in Group underlying EBITDA, whilst continuing to deliver on our strategic objectives and ensuring we are well-positioned to capitalise on emerging opportunities,” said HUB24 CEO, Andrew Alcock.
“We are very excited about the recent acquisition of Class and how together we can lead change in the wealth industry and enhance value for our customers and shareholders.”
With their acquisition of Class Limited just settling last week, the process can now commence for HUB24 to take advantage of Class’ long-standing position as the leading SMSF administrator in Australia – a position held by the fintech company for more than a decade.
As of September 2021, there was $291 billion in assets being administered on the Class Super platform where data sharing between HUB24 and Class will likely see a chunk of those funds moved to HUB24 as more Australians opt to take control of their wealth by utilising the HUB24 platform.
Alfred Chan is a Business Reporter at The Sentiment specialising in ASX-listed small cap companies, a bloodstock enthusiast and former equities analyst.
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