Netwealth Group reports the largest quarterly increase in FUA since listing

Financials sector company Netwealth Group Limited (ASX: NWL) reported an increase of $2.1 billion in the Funds Under Administration during the March 2019 quarter. This marks the largest quarterly increase in FUA since its listing on the Australian Securities Exchange in November 2017.

The Group’s Funds Under Administration now stands at $21.1 billion, reflecting an increase of $5.0 billion or 31.5% in the 12 months to 31 March 2019. FUA net inflow in the March 2019 quarter was $0.9 billion and market movement reportedly accounted for a further $1.2 billion increase. Year to date FUA net inflow of $2.8 billion was ahead of the previous corresponding period.

In today released Quarterly business update, Netwealth informed that it had been selected by an unprecedented number of new advisers as their preferred platform that has built a solid new business pipeline which continues to grow and convert to inflows throughout 2019 and beyond. The Australia New Zealand (ANZ) Private win further substantiates the Netwealth’s success story.

On 8 April 2019, the Netwealth Platform was selected as the preferred platform for ANZ Private providing a multi-asset, multi-currency platform offering which supports managed accounts, domestic and international bonds and equities, domestic managed funds, term deposits and foreign currency. ANZ Private expects to make the platform available to existing clients with investments held in ANZ Private, primarily in discretionary portfolios along with introducing further capabilities around July 2019. The report read that the opportunity currently includes approximately $3 billion of funds under administration with the current provider.

During the quarter, Netwealth released several new platforms features and products. The key initiatives included Portfolio and Asset Performance reports updated to enable both gross and net returns reporting, CSV outputs for new reports, Strategic Partner Pricing, new ATO reporting requirement for Superannuation funds and new Custody Platform. Moreover, the company was recognised as the Number 1 Platform by Investment Trends in December 2018, the fourth time in a row.

Netwealth stated that the fourth quarter is typically the strongest quarter for net inflows and it anticipates the trends to continue this year. The company expects it’s Fiscal 2019 FUA net inflows to exceed Fiscal 2018 FUA net inflows of $4.166 billion, subject to its estimated organic growth and the timing of client transaction as expected.

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Established in 1999, Netwealth offers a range of innovative portfolio administration, superannuation, retirement, investment and managed account solutions to investors and non-institutional intermediaries.

Going Forward, the company targets to introduce Challenger annuities to the platform during the remainder of the calendar year. Further cash management, transactional capabilities, online application and automated KYC verification, are some of the other development focus areas the company has planned for 2019.

NWL last traded at $8.650, down 4.631%, on 11 April 2019. The price to earnings multiple stood at 94.380 x with a market capitalisation of $2.16 billion.

Over the past 12 months, the stock has surged by 38.93% including a positive price change of 20.13% in the past three months.

Also Read: NWL Netwealth Group Releases 1H FY19 Results


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