Aussie small cap funds boosted by HUB24’s growth
The three funds holding exposure to HUB24 in their top 10 have reported double-digit performance as the platform firm delivers a record first half.
In its company results for the first half of 2021, the firm said it had seen a 39% increase in group underlying net profit after tax to $7.5 million compared to the same period a year ago. Meanwhile, platform funds under administration also increased 39% to $22 billion and it set a new half-year record for platform net inflows of $3.1 billion.
Its share price had risen 110% over the year to 23 February, making it one of the best-performing financials over the past year. It particularly rallied after October when it was announced the firm would be acquiring Xplore Wealth.
It was also announced as the preferred platform provider for financial advisers, alongside Netwealth and Praemium, usurping the big bank groups.
HUB24 was held in the top 10 of three funds within the Australian Core Strategies universe; Milford Dynamic, Hyperion Small Growth Companies and Aberdeen Standard Australian Small Companies.
All three of these funds had returned over 10% over the past year to 29 January, 2021, compared to losses by the ASX 200 of 3.1% over the same period and by the Australian equity small and mid-cap sector of 14.8%.
The largest weighting was in the Hyperion fund at 4.8%, followed by Milford at 3.1% and 2.9% in Aberdeen, but Aberdeen highlighted this weighting had reduced following profit taking.
Hyperion also reported the strongest performance at 29% while, Milford returned 14.8% and Aberdeen Standard returned 10.7%.
AUTHOR
Laura Dew
Recommended for you
Grant Hackett has been promoted from CEO of Generation Life to head up the wider Generation Development Group.
Tribeca Investment Partners has made a distribution hire from Australian Ethical in a newly-created role focused on the national intermediary market.
Asset managers may be urged to diversify their product ranges, but investment executives have warned any M&A deal should avoid simply filling gaps and instead consider long-term value creation.
Specialist wealth platform provider Mason Stevens has become the latest target of an acquisition as it enters a binding agreement with a leading Sydney-based private equity firm.
