NWL +1.67%: Ended higher though it was a volatile session with traders taking advantage of early strength following a good quarterly. Custodial net inflows i.e. assets held in safe custody (not HIN) of $4.4 billion in 2Q was ~20% ahead of consensus estimates underpinned by 4,272 new accounts established in the 3 months, taking total numbers of accounts to 151,437 (+14%) for the calendar year.
The outlook is good here, momentum strong, just the stock price is very high. Interestingly, they have also made changes to what they pay on cash across some products, moving from an up to 0.65% haircut to RBA Target Rate to a up to 0.8% reduction. In other words, cash that sits on the platform will get around 2.65%, about 2% pa less than what a savvy investor could get elsewhere!
MM remains neutral NWL, given current sky-high valuation
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