Why the HUB24 (ASX:HUB) share price surged to a record high today

The HUB24 Ltd (ASX:HUB) share price has surged to a record high on Tuesday after the release of its first quarter update…
The post Why the HUB24 (ASX:HUB) share price surged to a record high today appeared first on Motley Fool Australia. –

ASX shares higher

The HUB24 Ltd (ASX: HUB) share price has surged higher following the release of its first quarter update.

At the time of writing the investment platform provider’s shares are up 5% to a record high of $21.79.

How did HUB24 perform in the first quarter?

HUB24’s update revealed that its strong form continued in the first quarter of FY 2021.

For the three months ended 30 September, the company reported record first quarter net inflows of $1.36 billion and an average monthly net inflow of $454 million.

Combined with a positive market movement of $436 million, this lifted its Funds Under Administration (FUA) to $19 billion at the end of September. This was a 32% increase on the prior corresponding period and has increased HUB24’s platform market share to 2.1%.

What were the drivers of its growth?

Management advised that its strong flows were driven from both new and existing licensee channels across self-licensed and boutique advisers, brokers, and large national accounts.

This includes advisers winning new clients as well as funds being transitioned from incumbent platforms.

Pleasingly, management remains positive on the future and notes that its new business pipeline continues to grow.

It signed 27 new licensee agreements during the September quarter, with both large boutique licensees and self-licensed practices.

Management commented: “HUB24 is confident that the new business pipeline will continue to grow as additional opportunities emerge given adviser movement from institutional licensees and further industry consolidation.”

“Given market dynamics, HUB24 continues to be a platform of choice as advisers look for stability, delivering innovative product solutions that provide their clients with choice and customer service excellence,” it added.

In addition to this, the company notes that business development activity across all states is continuing as advisers adapt to the current environment. Furthermore, the HUB24 team continues to leverage growth opportunities from within its existing customer base while actively pursuing new relationships.

Rate cut impact.

The company also provided commentary on the impact it is experiencing from the ultra low cash rate.

“HUB24 is continuing to absorb some of the impact of the historically low interest rates since the Reserve Bank of Australia (RBA) cash rate reductions announced in March 2020. Should the RBA announce a further rate reduction, HUB24 expects to absorb this reduction which will negatively impact platform segment revenue until interest rates begin to rise,” it concluded.

Man who said buy Kogan shares at $3.63 says buy these 3 ASX stocks now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

In this FREE STOCK REPORT, Scott just revealed what he believes are the 3 ASX stocks for the post COVID world that investors should buy right now while they still can. These stocks are trading at dirt-cheap prices and Scott thinks these could really go gangbusters as we move into ‘the new normal’.

Find out the names of our 3 Post COVID Stocks – For FREE!

*Returns as of 6/8/2020

More reading

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Hub24 Ltd. The Motley Fool Australia has recommended Hub24 Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Why the HUB24 (ASX:HUB) share price surged to a record high today appeared first on Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!