Hub24 Ltd (ASX: HUB) shares are on the move on Tuesday morning.
At the time of writing, the ASX 200 stock is up 1.5% to $64.50.
Why is this ASX 200 stock rising today?
Investors have been bidding the investment platform provider's shares higher today after responding positively to its quarterly update.
According to the release, the company had another record three months in the first quarter of FY 2025.
For the three months ended 30 September, Hub24 reported record Platform funds under administration (FUA) of $91.6 billion. This represents growth of 8% over the previous quarter and 41% on the prior corresponding period.
This was driven by record quarterly net inflows of $4 billion (up 44% on the prior corresponding period) and positive market movements of $3.1 billion. There were no large migrations during the quarter.
During the quarter, 44 new distribution agreements were signed and the total number of advisers using the platform increased by 195 to 4,720. This is up 17% on the prior corresponding period.
Total funds under administration (FUA) reached $113 billion at the end of 30 September, which is a 37% increase year on year. This comprises platform FUA of $91.6 billion and Portfolio, Administration and Reporting Services (PARS) FUA of $21.4 billion (up 21% on prior corresponding period).
Growing market share
Positively, the company notes that the latest available Plan for Life data shows that Hub24 ranked first for quarterly and annual net inflows and had the largest quarterly and annual market share gains of all platform providers. The ASX 200 stock's market share increased to 7.7% (up from 6.3% as of 30 June 2023) and is ranked in seventh place overall.
Commenting on its strong first quarter growth, management said:
The strong start to FY25 with record quarterly net inflows (excluding large migrations) reflects HUB24's continued market leadership and focus on delivering customer service excellence. HUB24's proposition continues to resonate with licensees and advisers, delivering opportunities from both new and existing client relationships.
Pleasingly, the ASX 200 stock appears confident that this positive form can continue. It notes that it has a strong pipeline across all customer segments. As such, management remains confident in meeting its FY 2026 Platform FUA target of $115 billion to $123 billion and believes it is well-positioned for future growth.
Following today's gain, the Hub24 share price is now up approxiamtely 95% over the past 12 months.
