Netwealth shares lift after record quarterly performance
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More news: Shares in Netwealth were up 4.5% to $27.13 by 3:36pm AEDT after the Melbourne-based financial services group outlined record inflows during the September quarter and announced a $2.5 million acquisition of digital content and mobile app Flux Corp.
RBC Capital Markets analyst Jack Lynch said the performance sets up the company for stronger-than-expected net inflows in FY25.
"NWL delivered a strong 1Q25 for net inflows which has been consistent with management commentary heading into the fiscal year. 1Q25 custodial net inflows beat RBC and consensus expectations and, pleasingly, were well diversified across market segments and geography. Positive outlook commentary coupled with today’s better-than-expected net inflows should support the market’s confidence in a stronger flow environment into FY25," he said in a note.
Netwealth posts record inflows in September quarter
The news: Investment platform Netwealth has reported record net inflows in the September quarter, helping lift its funds under administration (FUA).
The numbers: The company said FUA rose by $7.4 billion over the three month period, led by record inflows of $4 billion and another $3.4 billion increase from positive market movements. Overall, FUA stood at $94.5 billion at September-end.
The context: The Melbourne-based financial services group said total managed accounts increased by 2.7% to 147,165 over the quarter to an overall balance of $19.4 billion. In addition to strong account growth, the company has expanded through the acquisition of Xeppo in August and mobile app Flux in October.
The group said several new large groups have begun transitioning their clients to its platform, with a number of these transitions in the early stages, instilling a high level of confidence in the net inflows outlook for FY25. Netwealth's strong showing has seen its shares jump nearly 80% over the past 12 months.
The source: ASX
