Hub24 Ltd (ASX: HUB) shares are charging higher on Tuesday morning.
At the time of writing, the ASX 200 stock is up almost 4% to a record high of $48.17.
This means the investment platform provider's shares are up 82% since this time last year.
Why is this ASX 200 stock charging higher?
Investors have been buying Hub24 shares this morning following the release of its fourth quarter update.
According to the release, Hub24 continued to deliver strong growth during the fourth quarter with platform funds under administration (FUA) increasing to $84.4 billion. This represents a 6% quarter on quarter increase and a 35% improvement on the prior corresponding period.
Management notes that this was driven by record quarterly net inflows of $5 billion, which was up 138% on the prior corresponding period.
However, this includes $1.8 billion from EQT. Excluding large migrations, fourth quarter net inflows were $3.2 billion, which is up 50% on the same period last year. This more than offset negative market movement of $0.3 billion for the quarter.
For the 12 months ended 30 June, the ASX 200 stock reported a record year of net inflows. They came in at $15.8 billion, which is up 62% on the prior corresponding period. Management believes this reflects Hub24's continued market leadership, strong customer relationships, and proven ability to successfully deliver large, complex migrations.
Excluding large migrations, it still achieved a joint record for net inflows of $11.4 billion. This was in line with FY 2022's net inflows.
Adviser growth
Also growing in the quarter was the number of advisers on its platform.
The ASX 200 stock advised that its proposition continues to resonate with advisers and licensees, delivering a strong pipeline of opportunities.
During the fourth quarter, 29 new distribution agreements were signed and the total number of advisers using the platform increased by 13% to 4,525.
Market share growth continues
Management notes that in the latest available Plan for Life data, Hub24 ranked first for quarterly and annual net inflows. It also had the largest quarterly and annual organic market share gains of all platform providers.
Hub24's market share increased to 7.3%, which is up from 6.1% at the end of March 2023. This means it is ranked in seventh place overall. This places it just behind Netwealth Group Ltd (ASX: NWL) and AMP Ltd (ASX: AMP), with Insignia Financial Ltd (ASX: IFL) still the clear market leader.
