Tag: Motley Fool

The Flight Centre Travel Group Ltd (ASX: FLT) share price surged nearly 4% higher on Friday. This came amid the NSW Government’s decision to scrap quarantine entirely.

Australia’s most populous state will open its international borders and scrap all forms of mandatory quarantine for vaccinated arrivals from 1 November.

In response to the decision, Flight Centre’s CEO Graham Turner told media the decision is “common sense”. The Australian Financial Review quoted Turner as saying: “Fully vaccinated people coming in, whether they’re from Queensland or the UK, if they are vaccinated, they are probably safer than someone down the street.”

As of Friday’s close, the Flight Centre share price is $22.56. That’s 3.77% higher than it was when the ASX closed on Thursday.

That’s a better performance than that of the broader market on Friday. The S&P/ASX 200 Index (ASX: XJO) and the All Ordinaries Index (ASX: XAO) ended the session 0.7% higher.

Meanwhile, the share prices of Qantas Airways Limited (ASX: QAN) and Webjet Limited (ASX: WEB) gained 1.9% and 4% respectively.

Let’s take a closer look at NSW’s new travel freedoms.

Flight Centre share price lifts after NSW scraps quarantine

NSW Premier Dominic Perrottet commented on the benefits he believes the state will see once it allows quarantine-free international travel. Perrottet stated: “Welcoming back fully vaccinated travellers will not only mean families and friends can be home in time for Christmas, it will also give our economy a major boost.”

Prime Minister Scott Morrison also weighed in on NSW’s plan to allow vaccinated travellers into Australia without quarantining, saying it demonstrated the freedoms vaccination against COVID-19 can provide.

However, Morrison was quick to clear up who can and can’t arrive in NSW from next month.

“This decision is about Australian residents and citizens first. The Commonwealth Government has made no decision to allow other visa holders… to come into Australia under these arrangements,” he said.

The post Flight Centre (ASX:FLT) share price jumps as boss applauds NSW quarantine stance appeared first on The Motley Fool Australia.

More reading

• Why ARB, Flight Centre, HUB24, and Qantas shares are rising today
• Why did the Flight Centre (ASX:FLT) share price have such a great FY22 first quarter?
• NSW has reopened. Time to buy?
• Is the Flight Centre (ASX: FLT) share price overvalued?
• Why did the Flight Centre (ASX:FLT) share price have such a great month in September?

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Webjet Ltd. The Motley Fool Australia has recommended Flight Centre Travel Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3BNpCHg

The brokers at Macquarie Group Ltd (ASX: MQG) reckon that the Magellan Financial Group Ltd (ASX: MFG) share price is undervalued.

How undervalued could the Magellan share price be?

Macquarie noted that Magellan shares have fallen. It’s down around 25% since Magellan reported its FY21 result.

Over the past year it has fallen 46%.

The broker attributes this decline to the underwhelming returns that its main investment strategies have been generating, causing the business to trade on a lower price/earnings ratio (p/e ratio).

However, Macquarie now believes Magellan could be good value.

The dividend is one of the things Macquarie thinks will support Magellan from dropping further. Based on the broker’s numbers, Magellan is expected to pay a partially franked dividend yield of 6.7% in the current financial year.

Its forward estimated earnings multiple is also lower compared to its longer-term average. Looking at Macquarie’s profit estimate for FY22, the Magellan share price is valued at 15x FY22’s estimated earnings.

The analysts also believe that Magellan will deliver growth of both earnings and the dividend in FY23. The FY23 expected partially franked dividend yield is 7%, whilst the Magellan share price could be valued at 13x FY23’s estimated earnings.

What has been happening to performance?

For the period to 30 June 2021, the Magellan Global Fund had returned 10.8% over 12 months and 13.2% per annum over three years. However, the benchmark of the MSCI World NTR Index in AUD returned 27.5% over the prior 12 months and 14.4% per annum over the prior three years.

The Magellan Infrastructure Fund also underperformed its global infrastructure benchmark over the prior year.

In the three months to 30 September 2021, Magellan experienced net outflows of $1.53 billion, which was approximately 1.3% of average funds under management (FUM) over the quarter. That comprised net retail outflows of $617 million and net institutional outflows of $910 million.

In relation to the net institutional outflows, $1 billion of outflows were the result of three clients rebalancing their portfolios. However, all three clients were retained, each with mandates of more than $2 billion.

No institutional mandates were lost during the quarter and the global sustainable strategy secured its first two mandates during the quarter.

How did Magellan perform in FY21?

The Magellan share price started falling when it reported its report for the 2021 financial year.

Statutory net profit fell 33% to $265.2 million. There were several different elements that made up that result.

Adjusted net profit before tax and before associates rose 3% to $454.4 million.

However, its associates (namely Barrenjoey) are investing heavily for growth, leading to a loss after tax for Magellan of $41.8 million. That meant Magellan’s ‘adjusted’ net profit after tax fell 6% to $412.7 million.

The fund manager also recorded $154.1 million of transaction costs related to strategic initiatives of $154.1 million. That included a restructuring of its global equity retail funds into a single trust.

Magellan has also launched new products like a core series of exchange-traded funds (ETFs), a sustainable fund and its retirement product called FuturePay. These new initiatives may assist with FUM, profit and the Magellan share price in the coming years.

The post Why Macquarie thinks the Magellan (ASX:MFG) share price is undervalued appeared first on The Motley Fool Australia.

More reading

• 2 ASX dividend shares with large yields and consistent payouts
• Top brokers name 3 ASX shares to sell next week
• Here are the top 10 ASX shares today
• Which shares are set to finish the week as the top movers on the ASX 300?
• Top brokers name 3 ASX shares to sell today

Motley Fool contributor Tristan Harrison owns shares of Magellan Financial Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3lFWig8

Bitcoin (CRYPTO: BTC) mining, as you may know, has come under fire for the massive amounts of energy required to run its vast arrays of computer networks.

By some estimates, Bitcoin mining in 2021 is using as much energy as all of Australia.

That’s of particular concern when the mining is done in regions reliant on high-emissions coal fired electricity, as was the case with China.

But China’s crackdown on crypto mining operations, driven more by regulatory concerns than environmental worries, looks to have succeeded in all but stamping out mining in the Middle Kingdom.

Although, as the Cambridge Centre for Alternative Finance pointed out in Wednesday’s data update from its Bitcoin Electricity Consumption Index (CBECI), a growing number of miners look to be rerouting through countries like Ireland and Germany using VPNs or proxy servers.

That’s one heck of a shell game.

United States takes lead in Bitcoin mining

Nonetheless, the CBECI data indicates that the “leading share of global Bitcoin network hashrate now sits in the US, followed by Kazakhstan and the Russian Federation”.

The hashrate refers to the computing speed and power involved.

The global hashrate share in the US has climbed to 35.4%, from 16.8% at the end of April. Meanwhile Kazakhstan has seen its share increase to 18.1%, up from 8.2%, and Russia now accounts for 11%, up from 6.8% at the end of April.

As for China, its share of the global network hashrate fell to 38% in June 2021 from a high of 76% in September 2019. In the most recent data, Cambridge notes the “declared mining operations in mainland China have effectively dropped to zero”.

Commenting on the Bitcoin mining migration to the US, Jonathon Miller, the managing director Australia of cryptocurrency exchange Kraken said:

The news that the US is now the epicentre for BTC Mining doesn’t come as a surprise given the ongoing crackdowns we’ve seen in China and July’s ban on mining. It was expected that migration would occur, particularly to locations where renewable energy is cheap and plentiful.

This is a positive thing for the cryptocurrency industry as many miners in North America rely on hydroelectric power, improving the overall energy consumption and impact of BTC.

What are the implications for Australia?

Australia, Miller said, has a global Bitcoin network hashrate share of just 0.19%. “There is a big missed opportunity here for us. But it isn’t too late to invest in more renewable energy and increase our own share of the BTC Mining pie.”

Milled added:

The US digital asset industry is likely to take advantage of this boom, attracting more talent and investment, leading to more jobs, business, income and tax revenue. If we want to see the same thing replicated here, we need to improve our own energy offering so we can also reap these benefits.

With electricity prices being what they are Down Under, Australia may have some way to go on improving its energy offerings before we see an influx of Bitcoin miners.

The post Why Bitcoin miners are flocking to the US and what this could mean for Australia appeared first on The Motley Fool Australia.

More reading

• Bitcoin price to US$500,000? Why ARK’s Cathie Woods is doubling down
• ASX set to welcome first cryptocurrency ETF… but there’s a catch
• What happened to the Bitcoin price in the FY22 first quarter?
• Are NFTs a bubble awaiting a pin or the next big investment theme?
• Here’s what happened to the Bitcoin price in September

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Bitcoin. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3AIHKR9

Today, the S&P/ASX 200 Index (ASX: XJO) dealt another day of green to finish the week. The benchmark index climbed 0.69% to 7,362 points.

By Friday afternoon the ASX boards were awash with gains. The only sector not pulling its own weight today was the utilities sector. Meanwhile, tech shares and miners pushed more than 1% higher.

As always, the question is: which shares delivered the biggest returns to investors on the ASX today? Here are the ten stocks that rose to the occasion:

Top 10 ASX shares countdown today

Looking at the top 200 listed companies, ARB Corporation Ltd (ASX: ARB) was the biggest gainer today. Shares in the 4×4 accessories company lifted 5.55%. This positive move followed an upgrade from the analysts at Citi — giving the company a price target of $55.45. Find out more about ARB Corporation here.

The next biggest gaining ASX share today was OZ Minerals Ltd (ASX: OZL). The copper-gold miner rallied 5.50% after gold prices gained overnight. Uncover the latest OZ Minerals details here.

Today’s top 10 biggest gains were made in these ASX shares:

ASX-listed company	Share price	Price change
ARB Corporation Ltd (ASX: ARB)	$50.44	5.55%
OZ Minerals Ltd (ASX: OZL)	$25.11	5.50%
The Star Entertainment Group Ltd (ASX: SGR)	$3.69	5.43%
Ebos Group Ltd (ASX: EBO)	$33.15	4.11%
Macquarie Group Ltd (ASX: MQG)	$190.21	4.01%
Netwealth Group Ltd (ASX: NWL)	$17.18	4.00%
Flight Centre Travel Group Ltd (ASX: FLT)	$22.60	3.96%
Webjet Ltd (ASX: WEB)	$6.41	3.72%
Imugene Ltd (ASX: IMU)	$0.425	3.66%
Magellan Financial Group Ltd (ASX: MFG)	$34.09	3.65%

Our top 10 ASX shares today countdown is a recurring end-of-day summary to ensure you know which companies were making big moves on the day. Check-in at Fool.com.au after the market has closed during weekdays to see which stocks make the countdown.

The post Here are the top 10 ASX shares today appeared first on The Motley Fool Australia.

More reading

• ARB (ASX:ARB) share price charges 6% higher on broker upgrade
• Legal risk just increased for the Westpac (ASX:WBC) share price
• Why ARB, Flight Centre, HUB24, and Qantas shares are rising today
• What’s up with the Wesfarmers (ASX:WES) share price today?
• ASX 200 (ASX:XJO) midday update: Rio Tinto cuts guidance, Treasury Wine disappoints

Motley Fool contributor Mitchell Lawler owns shares of Macquarie Group Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Netwealth. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited, Netwealth, and Webjet Ltd. The Motley Fool Australia has recommended Flight Centre Travel Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3BOMRAA

It has been a cracking week for ASX-listed hydrogen shares, with some companies providing returns north of 30% this week alone.

Shares in the alternative energy source regained momentum on Monday after Fortescue Future Industries announced plans to construct a hydrogen electrolyser manufacturing centre in Gladstone. However, investors may be wondering if there is substance to the emerging industry.

Thankfully, Capgemini released its 23rd edition of the World Energy Markets Observatory on Tuesday. Among a vast collection of insightful data, Capgemini shed some clarity on hydrogen’s future in the energy market.

Demand for alternatives

Before we get to how hydrogen might help Australia reach its net-zero targets, let’s evaluate the current energy landscape in the land down under.

According to Capgemini, Australia’s total electricity generation in 2020 was 265.2 terawatt-hours. Putting this into perspective, that is approximately the energy consumption of 47.9 million homes. Additionally, the report indicates almost a quarter of all this electricity was generated from renewable sources.

While that might seem substantial, the research suggests a further 5 to 10-fold increase in investments of low carbon technologies per year will be needed to meet Paris Accord objectives. Such an outlook appears positive for ASX hydrogen shares and the like. At a minimum, it indicates a sustainably larger market for green alternatives.

Commenting on this, group vice-president energy and utility sector Philippe Vié stated:

In this year’s World Energy Markets Observatory, we see the need to maintain energy affordability while accelerating energy transition efforts. Emerging technologies and new use cases across the energy value chain, including green hydrogen, CCUS, storage, and e-mobility, will play a critical role in helping the world achieve a net-zero future.

ASX hydrogen shares with a part to play

So, what part could ASX hydrogen shares play in this net-zero future? Based on Capgemini’s findings, green hydrogen has the potential to decarbonise an additional 15% of the world economy. That makes for an incredibly large addressable market.

However, to unlock such market potential, the costs of the emissions-free benefactor will need to decline. At present, green hydrogen will drain the pocket at $3 to $6.55 per kilogram. Meanwhile, fossil-based ‘grey’ hydrogen is a much cheaper $1.80 per kilogram. Luckily, Capgemini expects costs for the green alternative to reduce if/when the price of electrolysers shifts lower.

Speaking of electrolysers, one ASX-listed company getting involved in the production of this equipment is Fortescue Metals Group Limited (ASX: FMG). Specifically, the green-focused subsidiary Fortescue Future Industries (FFI), which today announced a joint venture with US-based hydrogen solutions provider, Plug Power Inc (NASDAQ: PLUG).

In addition to Fortescue, there is a whole swathe of smaller ASX hydrogen shares vying for a slice. These hydrogen compadres include Hazer Group Ltd (ASX: HZR) and Province Resources Ltd (ASX: PRL).

The post How fast is green hydrogen growing and which ASX shares could benefit? appeared first on The Motley Fool Australia.

More reading

• Own Fortescue (ASX:FMG) shares? Here’s the latest on China’s steel demand
• Fortescue (ASX:FMG) share price rises amid Gigafactory plans with Plug Power
• Fortescue (ASX:FMG) share price up 3% against all odds
• 3 reasons why the Fortescue (ASX:FMG) share price could be a buy
• Fortescue (ASX:FMG) share price down 5% as iron ore retreats

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3p4cJEV

The Sandfire Resources Ltd (ASX: SFR) share price has surged over the last 2 days after it announced the sale of its interest in Adriatic Metals Plc (ASX: ADT).

The sale of Sandfire’s 16% holding in Adriatic Metals brought in $97 million of aggregate proceeds.

The news sent the Sandfire share price 4% higher yesterday and it is still rising today.

At the time of writing, the Sandfire share price is $6.06. That’s 7.7% higher than it was at yesterday’s close and 12.2% higher than it was at Wednesday’s close.

Unfortunately, as The Motley Fool Australia reported yesterday, it hasn’t been such a pretty picture for Adriatic Metals.

The company didn’t see a scrap of the profits. Additionally, it had 16% of its capital sold at a 15.9% discount to its closing price on 12 October.

Let’s take a closer look at the most recent news from Sandfire Resources.

Sandfire share price soars amid investment sale

The Sandfire Resources share price is gaining for the second day in a row after it announced that it had sold around 34.6 million Adriatic Metals CHESS depository interests.

The CHESS depository interests represented ordinary shares. Sandfire sold each interest for $2.80.

The company appointed Canaccord Genuity Limited, RBC Europe Limited, and Stifel Nicolaus Europe Limited to be the sale’s bookrunners.

The sale was made to institutional investors and opened before the ASX did on Wednesday. It was finished before trade began on Thursday and is expected to be settled on 18 October.

Sandfire’s managing director and CEO Karl Simich, commented on the sale boosting the company’s share price this week, saying:

This has been an excellent investment for Sandfire. However, given that our focus is firmly now on the MATSA operation in Spain, which we see as the backbone of our company moving forward, together with our exciting development and growth assets in the Kalahari Copper Belt, our holding in Adriatic is no longer a strategic asset for the company.

The post Why has the Sandfire Resources (ASX:SFR) share price rallied 12% in 2 days? appeared first on The Motley Fool Australia.

More reading

• Adriatic Metals (ASX:ADT) share price plunges 16% on Sandfire update
• Why Adriatic Metals, Platinum, Redbubble, & Whitehaven Coal are dropping
• Why is the Adriatic Metals (ASX:ADT) share price halted?
• Sandfire Resources (ASX:SFR) share price fizzles after sale of Adriatic Metals stake
• Why has the Adriatic Metals (ASX:ADT) share price leapt 11% in a month?

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3AJLKB1

The Dimerix Ltd (ASX: DXB) share price is gaining more field position in afternoon trade and is now changing hands at 28.5 cents.

That’s an approximate 4% gain for the biopharmaceutical company today after it released a key update regarding its CLARITY 2.0 clinical trial regarding COVID-19.

Here are the details.

Dimerix Phase 3 COVID-19 study to expand into Australia

Dimerix advised that it has entered into an agreement with the NHMRC Clinical Trials Centre at the University of Sydney to expand its CLARITY 2.0 study.

It’s not uncommon to see large studies be conducted across different jurisdictions, as it enables a wider testing sample for more robust outcomes.

For instance, researchers can gauge results across a number of demographics, ethnicities, age groups, and locations in various countries to understand any inter-human variables in how a drug might work.

Dimerix’s seamless feasibility/phase 3 clinical trial, which is examining the effect of the company’s DMX-200 drug candidate in COVID-19 patients with respiratory complications, will commence recruitment of 600 patients across six sites in NSW, VIC and QLD upon regulatory approval.

Currently, the study is “already approved and open for recruitment in India”, and is being led by Professor Meg Jardine, Director of the NHMRC Clinical Trials Centre.

If successful, the company claims that DMX-200 “would likely be effective against the different Covid-19 strain mutations based on its mechanism of action”.

As border restrictions begin to ease and lockdown mandates begin to wind back in the coming months, active COVID-19 cases and hospitalisations are expected to rise, as has been the case in other countries when doing so.

The release notes that “it is anticipated that a significant portion of the population will remain susceptible to Covid-19 because they are not vaccinated or do not get an adequate protective response from the vaccines”.

This, it claims, is a driving factor for the need for COVID-19 treatments – like DMX-200 – on top of vaccines within Australia.

What’s next for Dimerix?

To fund the Australian arm of the CLARITY 2.0 study, Dimerix’s balance sheet is the “strongest it has been in the company’s history” after it received $24 million from a recent share purchase and placement plan.

It will use this cash to finance the suite of clinical programs surrounding DMX-200 and progress the company’s other candidate program, DMX-700, towards development.

The former also includes a phase 3 trial for a rare kidney disorder known as FSGS, whilst the DMX-700 program is centred on chronic obstructive pulmonary disorder (COPD).

Today’s gains are a welcomed reprieve for shareholders, having endured a 5% loss over the month in their Dimerix holdings.

Dimerix share price snapshot

The Dimerix share price has climbed 21% this year to date, ahead of many of its biopharmaceutical peers.

Despite this, it has only gained 5.5% in the past 12 months, well behind the S&P/ASX 200 index (ASX: XJO)’s return of around 18% in that time.

The post Dimerix (ASX:DXB) share price jumps on COVID study update appeared first on The Motley Fool Australia.

More reading

• Dimerix (ASX:DXB) share price soars as boss looks back on ‘pivotal’ year
• These 3 ASX Healthcare shares have soared over 10% today
• Dimerix (ASX:DXB) share price soars 9% on COVID-19 news

The author Zach Bristow has no positions in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3lDIoLn

The ARB Corporation Limited (ASX: ARB) share price is finishing the week in a very positive fashion.

In afternoon trade, the 4×4 parts manufacturer’s shares are up 6% to $50.68.

Why is the ARB share price charging higher?

The catalyst for the rise in the ARB share price today appears to have been a broker note out of Citi this morning.

That note was in response to the company’s annual general meeting update on Thursday which revealed that FY 2022 has started positively.

The company advised: “Pandemic induced restrictions during the first quarter of FY2022 impacted ARB in a number of its markets, including significant lockdowns in Victoria and New South Wales. Despite these restrictions, trading performance remained strong during the quarter with pleasing sales and profit growth.”

“ARB’s order book remains strong, both domestically and internationally, and the Company is continuing with its product development work, store development program in Australia and the expansion of its manufacturing capability,” it added.

What did Citi say?

In response to the update, the team at Citi upgraded the company’s shares to a buy rating with a $55.45 price target.

Based on the current ARB share price, this implies potential upside of 9.4% for investors even after today’s strong gain.

Citi commented: “The 1Q22 trading update revealed better profit momentum despite lockdowns in NSW and Victoria. We upgrade ARB to Buy (from Neutral) following the -11% share price decline since its August 2021 peak as we see potential for sales and profit to accelerate over 2Q22e with NSW and Victoria reopening.”

“ARB also has significant medium-term growth drivers including i) its partnership with Ford, ii) distribution gain opportunities in the US, iii) opportunities to expand in Europe and iv) expansion of its Thailand manufacturing facility,” it added.

The ARB share price may now be up 63% in 2021, but Citi appears to believe it could run even higher.

The post ARB (ASX:ARB) share price charges 6% higher on broker upgrade appeared first on The Motley Fool Australia.

More reading

• Why ARB, Flight Centre, HUB24, and Qantas shares are rising today
• ASX 200 (ASX:XJO) midday update: Rio Tinto cuts guidance, Treasury Wine disappoints
• ARB Corporation (ASX:ARB) share price rises as stock goes ex-dividend
• These ASX shares are surging on the back of key Aussie lifestyle trends
• Top brokers name 3 ASX shares to buy today

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended ARB Corporation Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3j6j2nE

The Westpac Banking Corp (ASX: WBC) share price could find itself under the comfortable spotlight if it gets hit by legal action for its vaccination policy.

The second largest ASX bank has become the latest S&P/ASX 200 Index (Index:^AXJO) company to make it mandatory for all staff to get the COVID-19 jab.

Westpac’s staff in NSW, Victoria and the ACT will need to be fully vaccinated by December 1 or risk losing their jobs. Employees in other states will be required to be fully vaccinated by February 1, 2022, reported the according to the Australian Broadcasting Corporation.

Westpac is first of the big banks to mandate COVID vaccination

The Commonwealth Bank of Australia (ASX: CBA) said that it will start consultation with its staff about implementing its vaccination policy.

The other two big banks, Australia and New Zealand Banking GrpLtd (ASX: ANZ) and National Australia Bank Ltd. (ASX: NAB) have yet to announce their vaccination policy.

But ASX banks aren’t the first to move on this front. Other large ASX shares have already announced similar policies for their staff. This includes the Telstra Corporation Ltd (ASX: TLS) share price and BHP Group Ltd (ASX: BHP) share price.

Westpac facing legal challenge risk to vaccination policy

The no-jab no-job mandate has angered some in the community. They argue that their rights are being infringed by such a draconian measure.

You only need to look at the angry protests by those working in construction to see evidence of this. Workers across several industries are threatening to challenge companies’ vaccine mandate in court.

But Westpac believes the vast majority of its staff will back its decision. The bank’s internal survey of 10,000 staff found that 91% have or intend to get vaccinated while 4% are undecided.

Of course, it only takes one anti-vaxxer to take legal action and spoil the party. Westpac has 76,000 staff.

Loophole for anti-vaxxers to exploit

Legal experts agree that such court actions are unlikely to succeed. There is legal backing for employers to require their staff to be vaccinated.

However, this also depends on the nature of their job. There could be a loophole if anti-vaxxers can show they can socially distance on the job and take over measures to stop the spread.

Legal standing yet to be tested

“With a large workforce, it is important that we have the safest possible work environment,” Westpac CEO Peter King said in a statement.

“Since the NSW outbreak started in June, more than 3,800 of our employees have been required to isolate and more than 280 branches have closed and re-opened, both significantly disrupting operations.

It remains to be seen if Westpac, or any other ASX company, will have their conviction bested in court.

The post Legal risk just increased for the Westpac (ASX:WBC) share price appeared first on The Motley Fool Australia.

More reading

• What’s happening with the CBA share price this week?
• BHP (ASX:BHP) share price climbs as miner hones in on ESG future
• What’s up with the Wesfarmers (ASX:WES) share price today?
• These ASX 200 banks just made a decision that could affect 76,000 workers
• ASX 200 (ASX:XJO) midday update: Rio Tinto cuts guidance, Treasury Wine disappoints

Motley Fool contributor Brendon Lau owns shares of Australia & New Zealand Banking Group Limited, BHP Billiton Limited, Commonwealth Bank of Australia, National Australia Bank Limited, Telstra Corporation Limited, and Westpac Banking Corporation. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra Corporation Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3vlrKDx

The Netwealth Group Ltd (ASX: NWL) share price has risen by around 25% in the past week.

Considering its market capitalisation was already in the billions, that is a significant increase in a short amount of time.

On 14 October 2021, the business released its quarterly business update and outlook for the three months to September 2021.

Netwealth quarterly update

Netwealth said that funds under administration (FUA) at 30 September 2021 was $52 billion. That was an increase of $4.8 billion (a 10.2% increase) for the last quarter, including market movements of $0.8 billion. Year on year, the increase was $17.9 billion (an increase of 52.7%), including a positive market movement of $6 billion.

The FUA net inflows for the September quarter were $4 billion, which was 111% more than the prior corresponding period. Of the total FUA, net inflows from two clients contributed approximately $0.9 billion. The rest of the inflows were “well diversified”.

Turning to funds under management (FUM), it reached $12.6 billion at 30 September 2021, which was a 7.7% increase (or $0.9 billion) for the quarter and an increase of 56.9% year on year ($4.6 billion in dollars).

FUM net inflows were $0.9 billion for the quarter, including $0.7 billion of managed account net inflows.

The managed account balance was $10.7 billion at 30 September 2021, an increase of 63.6% year on year.

The Netwealth share price has risen almost 20% since this announcement.

How fast is it growing compared to the competition?

Netwealth said that it continued to lead the industry for FUA net inflows, as reported in the ‘Plan for Life’ quarter platform market update. It recorded the largest FUA net inflows of $9.8 billion for the 12 months to 30 June 2021.

At 30 June 2021, its market share increased to 4.9%. That was an increase of 1% over the prior 12 months.

It is the sixth largest platform, behind IOOF Holdings Limited (ASX: IFL), Westpac Banking Corp (ASX: WBC) / BT, AMP Limited (ASX: AMP), Commonwealth Bank of Australia (ASX: CBA) / Colonial and Macquarie Group Ltd (ASX: MQG). It’s also growing at a faster pace than Hub24 Ltd (ASX: HUB).

Outlook

The outlook may be factoring into investor’s thoughts about the Netwealth share price.

It said:

The ongoing structural changes within the financial services industry continue to support and increase Netwealth’s addressable market and growth opportunities.

As a result of these changes our pipeline for new business remains very strong across all market segments.

The business upgraded its FUA net inflow guidance for FY22 from $10 billion to approximately $12.5 billion. That was due to the record net inflows from the last quarter and the growth that is in its “substantial” new business pipeline.

The post Here’s why the Netwealth (ASX:NWL) share price has surged 25% this week appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX shares today
• Which ASX 300 shares are the major movers on Thursday?
• Why A2 Milk, HUB24, Netwealth & Perseus shares are storming higher
• ASX 200 (ASX:XJO) midday update: HUB24 & Netwealth impress, A2 Milk surges again
• Netwealth (ASX:NWL) share price jumps 10% following record quarter

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Hub24 Ltd and Netwealth. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited and Netwealth. The Motley Fool Australia has recommended Hub24 Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3vbRSAG