Netwealth shares down after quarterly update
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More news: Shares in Netwealth tumbled on the ASX despite the financial services group posting funds under administration growth of $6.7 billion for the March quarter.
Netwealth shares were down 5.7% to $19.13 by 1:20pm AEDT.
Netwealth records FUA surge for March quarter
The news: Netwealth reported funds under administration (FUA) growth of $6.7 billion for the March quarter, as its founder and major shareholder Michael Heine takes a step back from his role as executive director.
The numbers: The ASX-listed financial services group held FUA of $84.7 billion by 31 March, after a $6.7 billion quarterly rise comprising FUA net inflows of $2.7 billion and positive market movement of $4 billion.
FUA inflows of $5.2 billion for the March quarter were 40.7% higher than the prior corresponding period, with net inflows of $2.7 billion representing a 62.2% rise.
Funds under management also increased during the quarter, rising by $1.6 billion to $19.7 billion. Netwealth's managed account balance increased by $1.4 billion to $17 billion, including net inflows of $600 million, a 62.1% increase year on year.
The context: The Melbourne-based group said that in addition to strong account growth during the quarter, the company expanded and strengthened its new adviser and licensee relationships, as well as experiencing strong conversion rates in its new business pipelines across all segments.
Netwealth noted that it expects FUA inflows in the June quarter to be "very strong" with several new large transitions commencing, in addition to higher seasonal flows and increased market activity.
The group's founder and major shareholder Michael Heine, who has served as executive director since stepping back as joint managing director with his son Matt Heine in 2022, will transition to a non-executive directorial role by 30 June.
The source: ASX announcement
