Independent platforms were sold off heavily last week as news broke that HUB’s closest competitor, Netwealth (NWL) had been given 12 months’ notice by ANZ that interest on cash accounts which is paid at 0.95% above the overnight cash rate would no longer be offered. The platforms take this rate, apply a haircut and pass on a significantly lower rate to their customers – it’s a nice little earner for them. While detail is fairly scarce on what this means for earnings we can make some assumptions and in the case of HUB, its ~19% correction from recent highs seems a large overreaction.
The independent platform space is one MM is bullish on in the medium term given the huge opportunity the sector has to continue to take market share from the larger incumbents.
MM is buying HUB in the Flagship Growth Portfolio with a 4% weighting around $22.50
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