barry731 These are very different businesses; NWL & HUB are basically tech companies that provide a platform for other financial intermediaries (advisers, institutions etc) to use their platform for all their administrative needs. Yes they have added on additional services for which they get a bigger margin, but their core purpose is to provide a platform for which they get an admin fee.
I think their admin fee is ~40bps but that basically allows a financial adviser to outsource pretty much all the admin to NWL (I assume including reporting, compliance etc etc). NWL have then added other services (cash mgmt, smsf admin, brokerage, fx etc) that is supplementing those admin services (where the margins are getting squeezed), but this additional services makes their offering stickier hence very hard for clients to change once they are onboarded and get familiar with the platform......hence the high PE on these businesses.
FUA and FUM drive their revenues, and obviously losing a large client will have an impact (as it has for MFG), but they don't need to worry about investment performance etc....it mostly comes down to the client service and the platform they are providing......hence valued like a tech growth company rather than a fund manager like MFG
MFG Price at posting:
$17.04 Sentiment: Hold Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)