Netwealth share price zooms higher on business update


invest in ASX shares

In morning trade the Netwealth Group Ltd (ASX: NWL) share price has pushed higher following the release of its latest quarterly business update.

At the time of writing the investment platform provider’s shares are up over 4% to $7.70.

What was in Netwealth’s update?

According to the release, during the quarter the company’s funds under administration (FUA) increased $2.3 billion or 10.8% quarter on quarter to $23.3 billion. This means the company achieved a $5.4 billion or 29.9% increase for the full year.

The release explains that it achieved FUA net inflows of $1.5 billion in the June quarter, with the remaining $0.8 billion increase due to favourable market movements. Total FY 2019 FUA net inflows came in at $4.3 billion.

On the table below, you can see how the company has progressed over the last 12 months.

NWL share price

The solid growth in FUA this year means that Netwealth has grown its market share from 2.3% to 2.5%.

This makes it the ninth-largest platform provider (in FUA terms) behind the likes of IOOF Holdings Limited (ASX: IFL), AMP Limited (ASX: AMP), and the market leader Westpac Banking Corp (ASX: WBC) through its BT business.

But whilst it may trail these competitors in total FUA, its net funds flows increase of $4.3 billion over the 12 months to March 31 was the biggest in the industry by a decent margin.

The next best performers over the same period were HUB24 Ltd (ASX: HUB) with a $3.7 billion increase and then Macquarie Group Ltd (ASX: MQG) with a $1.9 billion lift in platform FUA.

And with the company launching Challenger Ltd (ASX: CGF) annuities on its platform last month and its platform continuing to grow in popularity and rate highly with users, management appears confident that its solid growth can continue at the expense of some of the bigger players which continue to give up market share.

If you like Netwealth then you should check out these top growth shares that have been rated as buys.

NEW. Five Cheap and Good Stocks to Buy in 2019…

Our Motley Fool experts have just released a brand new FREE report, detailing 5 dirt cheap shares that you can buy today.

Stock #1 is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…

Stock #2 is another high-growth business trading near a 52-week low all while offering a 4.7% grossed-up yield…

Plus 3 more cheap bets that could position you to profit over the next 12 months!

See for yourself now. Simply click the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.


More reading

James Mickleboro owns shares of Westpac Banking. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Hub24 Ltd. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited. The Motley Fool Australia owns shares of Netwealth. The Motley Fool Australia has recommended Hub24 Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Motley Fool’s purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool’s free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 2019


Here’s how you can strike it rich in the share market…

The best way to strike it rich in the share market is to buy shares that are not only cheap, but growing quickly.

Combining countless hours of research with over 30 years of hands-on stock market investing experience, The Capital Club’s founder Bruce Jackson has just published his definitive list of 3 Cheap and Good ASX Stocks for 2018.

Best of all, the report is absolutely free, exclusively for readers of The Capital Club.

In this comprehensive free report, you’ll find the name of one ASX gold stock that’s not only profitable, but trading at less than 4 times forecast profits.

You’ll also discover the name of a company one fund manager has called the cheapest stock in the ASX 100, and you’ll read about the three catalysts that could push the share price higher in the next six months.

Finally, the report names one of the cheapest retailers trading on the ASX, a company that just picked up the assets of a distressed competitor on the cheap, paying just 2 times earnings. No wonder one top fund manager thinks its share price could at least double.

With the share prices of each of these 3 companies having the potential to double or more, you’ll want to act now. Simply click here or the button below, enter your email address, and this free report will be instantly sent to you.

See the 3 stocks