HUB is set to challenge retail banks by perfecting one specific innovation; modernising the self-managed super fund for both advisers and investors through their award-winning superannuation and investment platform.
Their financial results for FY19 revealed strong growth for the company, and the subsequent surge in share price reflected a July prediction from Goldman Sachs.
The broker foresaw an August share price rise, which came to fruition between 16–30 August. In that time, HUB shares climbed almost 20% in price.
Today, HUB shares were already up 65 cents before midday, after the release of their Q1FY20 update.
Record Q1 net inflows have excited investors, who were told previously by the company that FY20’s ‘opportunity for growth is…significantly larger’.
ASX:HUB commences FY20 with a bang
As per the update:
‘The HUB24 platform continues to grow at the fastest rate in the industry and is ranked 2nd place [as of June 2019] for both quarterly and annual net inflows…across the Australian platform market.’
Q1FY20 quarter net inflows are up 94% from Q1FY19, sitting at $1.24 billion. Average monthly inflows are already ahead of the FY19 average by around $90 million.
Funds Under Administration (FUA) are also up 57% from the prior corresponding period.
HUB noted that ‘structural change across the industry’ is leading to opportunities for FUA transitions from competitor platforms.
80 new advisers began using the HUB24 platform during the September quarter, with 22 new licensee agreements signed.
The company also noted that recruitment has now commenced for additional distribution staff ‘to leverage the unprecedented market opportunities for increasing growth’.
In addition, HUB’s wholly-owned subsidiary licensing solution platform, Paragem, has on boarded 11 new practices — the largest annual growth in practice numbers to date.
Where will HUB go from here?
HUB are making efforts to enhance the investment opportunities available to their customers.
Managing Director Andrew Alcock stated:
‘We’re continuing to grow our pipeline by securing new relationships and remain focussed on continuing to invest to further consolidate our industry leading position.’
As such, this quarter also saw 20 managed portfolios being added to the platform, including diversified, fixed interest and equity portfolios.
The aim here is to maintain their leading position in managed portfolios.
The company is therefore putting together a managed portfolio tech scrum team, which is set to be in place by the end of 2019.
The fact that HUB are aware that further innovation is needed to remain a leader in the fintech crowd is promising.
And having a platform geared to a particular aspect of financial marketing gives them a point of difference within this oversaturated sector.
If you’re interested in other fintechs who we believe are showing similar models of innovation, check out this free report.
For Money Morning