The HUB24 Ltd (ASX: HUB) share price has been a strong performer in morning trade on Tuesday.
At the time of writing the investment platform provider's shares are up 4% to $11.75.
Why is the HUB24 share price on the rise?
Investors have been buying HUB24's shares this morning following the release of an update on its performance during the June quarter.
According to the release, the company saw its net inflows increase 32.4% on the prior corresponding period to $979 million. This meant that net infows on an annual basis have now increased 60.6% to $3.9 billion.
Total gross inflows over the period were $1,475 million, up 44.7% on the prior corresponding period.
Overall, this led to total funds under administration (FUA) lifting to $12.9 billion at the end of June, up 54.3% on the prior corresponding period.
Management advised that the company's strong growth in FUA continues to be driven by organic opportunities from both existing and new adviser relationships, as well as through transition opportunities from other platforms.
It also revealed that the latest available Strategic Insights data shows that HUB24 was in 2nd place for quarterly net inflows. It also maintained its position of 2nd place for annual net inflows across the Australian platform market.
This sandwiches it between Netwealth Group Ltd (ASX: NWL) in first place with net inflows of $4.3 billion and Macquarie Group Ltd (ASX: MQG) in third place with net inflows of $1.9 billion.
Over the 12 months to March 31, HUB24 increased its platform market share from 0.9% to 1.3%.
These inflows could be given a boost in the near future after the company was chosen to provide platform services by three large licensees.
Agreements have been secured with these licensees and the company is actively working to rollout the HUB24 platform to their advisers.
These include Madison Financial Group, a national advice network with 100 financial advisers; Centrepoint Alliance, a national advice network with over 350 advisers; and one of Australia's largest stockbroking and wealth management networks which will be formally launched in the coming weeks.
Given that the company finished the period with 1,625 advisers on its platform, these agreements could provide a major boost to fund inflows in the coming quarters.
