It has been a stunning day of trade for the Hub24 Ltd (ASX: HUB) share price.
In afternoon trade, the investment platform provider's shares are up almost 14% to $25.10.
This makes it the best performer on the ASX 200 index on Tuesday.
Why is the Hub24 share price racing higher?
Investors have been scrambling to buy the company's shares following the release of its latest quarterly update.
According to the release, Hub24 had a strong first quarter and delivered platform net inflows of $3 billion for the three months.
And while this is down 1.6% on the net inflows recorded a year earlier, it is still very strong in the current environment. Especially compared to what fund managers like Magellan Financial Group Ltd (ASX: MFG) have been reporting.
The release reveals that these inflows took Hub24's platform funds under administration (FUA) to $52.4 billion. Which, after accounting for negative market movement of $0.3 billion, represents a net increase of $2.7 billion since the end of FY 2022.
This was driven by continued growth in the number of advisers on its platform. Hub24 now has 3,639 advisers, up 13% year over year and 4.3% since the end of FY 2022.
Change of deposit agreement
In other news, Hub24 revealed that it is ditching Australia and New Zealand Banking Group Ltd (ASX: ANZ) in favour of Bank of Queensland Ltd (ASX: BOQ) for deposits. This is expected to result in a reduction in its average platform cash management fees.
Management explained:
Following a competitive selection process HUB24 has signed an agreement with Bank of Queensland which will take effect from 2nd December 2022. As a result of this change in providers, and subject to portfolio mix fluctuations, this is expected to result in a reduction in the rate of HUB24's current average platform cash management fee of between 0.20% pa to 0.30% pa.
