Excluding acquisitions (PARS, XPL), HUB reported 3Q21 FUA of A$24.4bn, up 11% for the quarter and up 62% on the pcp. Including acquisitions, HUB now has A$35.6bn of custody FUA and A$15.8bn of non-custody (PARS) FUA. Net flows were strong at A$1.92bn, up 41% on the pcp. The ClearView FUA transition (~A$1.3bn) is on track for 4Q21. Adviser numbers were up 21% for the quarter to 2,758 (including acquisitions) and up 8% organically. The clearest headwind is the inevitable revenue impact from a lower interest rate achieved on pooled cash. Whilst the outcome creates downside earnings risk, we think HUB can ultimately absorb the impact and still deliver solid long-term growth. HUB continues to deliver strong forward looking metrics. Executing on the scale achieved (margin improvement) is now required, which is our base case expectation over FY22-24. Add maintained.
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