Finance

Hub24 Ltd (ASX:HUB) Drops 5% After Business Update

The Hub24 Ltd (ASX: HUB) share price closed more than 5% lower today after the company released a business update. Here’s what you need to know.

About Hub24 Ltd

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 strong management team with decades of experience within the wealth management industry and in the development of platforms.

What’s Happened?

HUB24 released its December quarter FY20 update to the market this morning.

Highlights include:

  • Quarter Net Inflows of $1.259 billion — up 67% on pcp, excluding the large institutional transition in December 2018
  • Record first half Net Inflows of $2.497 million — up 79% on pcp, again excluding the institutional transition in Dec 2018
  • Funds Under Administration (FUA) of $15.8 billion at 31 December 2019 — up 58% on pcp

This strong result sees the HUB24 platform continue to grow at the fastest rate in the industry, while also being ranked 2nd place for both quarterly and annual net inflows according to the latest available Strategic Insights data.

According to HUB24, its strong FUA growth is being driven by both transition opportunities from new and existing adviser relationships, as well as organic flows from existing advisers.

Further, record net inflows over the first half have been assisted by advisers with larger client account balances and therefore, access to competitive pricing.

During the quarter, 136 new advisers began using the HUB24 platform and 17 new distribution agreements were signed. These new distribution agreements were with a combination of institutionally-owned licensees and high quality self-licensed advisers.

Despite this, the HUB24 share price closed the day 5.29% lower, with shares last trading at $11.28.

FREE Finance & Investing Courses

Online Value Investing Course - FREE!

How do you value an investment? Do you really understand what you’re investing in and why?

We’ve just updated our FREE business valuation course and made it available to investors like you. Complete with models, templates and tools, simply click here to access the course.

It’s completely free!

WordPress Theme built by Shufflehound.

INFORMATION WARNING

Please note, this website provides news and factual information only. It is not a source of financial or investment advice of any kind.Before acting on any of the information you should always speak with a licensed and trusted financial adviser who is authorized to give you financial advice. Check ASIC’s professional registers (asic.gov.au) for a list of licensed financial advisers and organisations.Never invest in a fund/ETF or buy a financial product (insurance, brokerage account, etc.) before you read the Product Disclosure Statement (PDS). The PDS document is your source of truth and can be found on the company’s website. Read it before you act.Finally, always remember that the future is uncertain and investing in anything is risky. Past performance is a poor guide for future returns. For more information, read our Terms & Conditions.