The Hub24 Ltd (ASX: HUB) share price will be on watch this morning after posting strong growth in its quarterly update to the market.

HUB24 is an Australian financial technology business that creates portfolio management and Superannuation software. Founded in 2007, you can think of HUB24’s software as a way to better manage investments in shares and other assets. HUB24 has a management team with decades of experience within the wealth management industry and in the development of platforms.

The Update

HUB24 has recorded quarterly net inflows of $1.24 billion for the first quarter of the 2020 financial year (FY20). This is a massive 94% increase on the previous corresponding period (pcp) and clearly illustrates the ongoing growth potential of the platform.

Funds under administration (FUA) as at September 30 stood at $14.4 billion, which was up 57% on the pcp.

According to the update, the HUB24 platform is growing faster than any other in the industry and is ranked second for both quarterly and annual net inflows.

The platform provider has been a key beneficiary of a large number of financial advisers moving away from larger institutions, a trend which is likely to continue, at least in the short term.

Another 85 advisers were added to the platform during the September quarter, bringing the total number to 1,705 as at September 30.

Reaction From Management

Commenting on the strong performance, HUB24 Managing Director Andrew Alcock said: “We are pleased with the great start to FY20, with net inflows of $1.2 billion almost double the level of the first quarter of FY19. We’re continuing to grow our pipeline by securing new relationships and remain focused on continuing to invest to further consolidate our industry leading position.”

The HUB24 share price has been in a downward trend for much of this year, having fallen 24% from its peak back in April.

Whilst the company has been growing at a pleasing rate, investors had already seemingly been factoring that in to the share price. However, it will be interesting to see if this latest update can reignite the buying and push HUB24’s share price back towards the April high.

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Disclaimer: Any information contained in this article is limited to general financial/investment advice only. The information has not taken into account your specific needs, goals or objectives, so please consider consulting a licenced and trusted adviser before acting on the information. Please read The Rask Group’s Financial Services Guide (FSG) for more information. This article is authorised by Owen Raszkiewicz of The Rask Group, which is a corporate authorised representative No. 1264179 of Strawman Pty Ltd (ACN: 610 908 211) (AFSL: 501 223).

At the time of publishing, Luke has no financial interest in any companies mentioned.