Netwealth shares soar 12% as inflows grow despite volatile market
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More news: Netwealth was one of the best performing companies on the ASX 200 index after the investment platform grew funds under administration by 29%, or $2.5 billion, during the March quarter.
Netwealth shares were up 12.3% to $25.40 at 12:15pm AEST, extending gains of more than 25% over the last 12 months.
RBC Capital Markets analyst Jack Lynch said Netwealth's third-quarter result was in-line with consensus estimates, with lower-than-expected market movements driving a "marginal miss" to funds under administration.
However, Lynch said that the result "will be taken positively" given net inflows remained strong in April despite the heightened levels of volatility in the broader market.
Netwealth's management have also reiterated confidence in their outlook for net flows into fiscal 2026 and beyond, he noted.
Netwealth posts 29% growth in quarterly funds under management
The news: Investment platform Netwealth added $2.5 billion in funds under administration (FUA) during the March quarter, as record inflows outweighed negative market movements.
The numbers: The company said quarterly FUA rose 29% year on year to $104.1 billion, driven by net inflows of $3.5 billion and partly offset by $1 billion in negative market movement.
Net inflows totalled $12 billion for the financial year to date, a 61% jump compared to the prior corresponding period. Net inflows reached $15.8 billion for the last 12 months, a 49% increase year on year.
The total number of accounts increased by 4,301 for the quarter to 155,738 as at 31 March, a 13% increase over the preceding 12 months.
The numbers: The Melbourne-based financial services group said growth was driven by a high level of recurring and well-diversified revenue, as well as resilience amid volatile markets.
Netwealth, which has expanded through the acquisition of Xeppo and mobile app Flux, said net flows have continued to remain strong in April, despite increased market volatility.
The company said it expects FUA net flows to be seasonally strong in the June quarter. It noted that its net flows outlook for fiscal 2026 and beyond is supported by a "robust transition pipeline" and new client wins.
The sources: ASX, RBC Capital Markets
