Netwealth Group Limited (ASX: NWL) Announces Record FUA Growth
Record FUA Net Inflows
Netwealth Group Limited (ASX: NWL) announced a record net inflow of $4.5 billion for the December 2024 quarter, a 69.8% increase compared to the prior corresponding period. This figure exceeds the previous record of $4.0 billion achieved in the September 2024 quarter. Over the past twelve months, the company reported total funds under administration (FUA) inflows of $27.3 billion, with net inflows of $15.0 billion, marking a 57.2% increase year-on-year.
Quarterly Highlights
The total FUA reached $101.6 billion at the end of December, an increase of $6.2 billion for the quarter and $23.6 billion for the calendar year. The number of accounts rose by 4,272, reaching 151,437, reflecting a 14.0% increase for the year. Netwealth’s steady growth was driven by high transition rates from financial intermediaries and strong conversion rates across all client segments.
Product Enhancement and Financial Performance
Netwealth’s non-custodial product offerings saw significant growth, with a 204.2% increase to $694 million over the year. Funds under management (FUM) rose by $1.5 billion to $24.0 billion. During the quarter, the company launched various enhancements to its platform, improving user interface, adviser workflows, and expanding its suite of managed models.
Outlook
While the third quarter of FY2025 is expected to see seasonally lower flows, Netwealth expresses confidence in continued positive inflows. The company plans to invest in multiple initiatives to capitalise on market opportunities, projecting a modest rise in expenses moving forward while maintaining its strong financial position.
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Netwealth Group. The Motley Fool Australia has positions in and has recommended Netwealth Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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