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Highlights:
- As at 30 June 2022, Netwealth’s Funds Under Administration (FUA) stands at AU$55.7 billion.
- For the June quarter, Netwealth marks a fall of 3.4% in FUA.
- The company posts a strong rise of 32.4% in annual FUA net inflows for FY2022.
- Netwealth shares are trading over 6% up on the ASX (as at 11:39 AM AEST, 14 July 2022).
Diversified financials company, Netwealth Group Limited (ASX:NWL), on Thursday, shared its June 2022 quarterly update and outlook via an ASX announcement. Reportedly, for the entire period of FY2022, Netwealth has delivered a record annual FUA (funds under administration) net inflow of AU$13 billion, 32% higher than the previous year.
Shares of the AU$3.03 billion market cap company were spotted trading 6.50% up on the ASX to AU$13.25 per share at 11:35 AM AEST. In one month, the share price increased by almost 12%, dropping by over 19% in one year. On a year-to-date basis, the share price fell by more than 27%. In last five years, the shares have moved up by 145%.
NWL shares were seen outperforming its benchmark index, ASX 200 Financials (INDEXASX:XFJ) which was down 0.52% around the same time.
Key highlights of the June 2022 quarterly update
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Image source: © Adodonov | Megapixl.com
- As at 30 June 2022, the company has recorded an FUA of AU$55.7 billion, up 18.1% for the financial year 2022 (FY22).
- However, for the June quarter, FUA has seen a fall of AU$1.9 billion or by 3.4%. The company has attributed this fall to the negative market movement of AU$4.7 billion.
- Annual FUA net inflows surged by 32.4% in a year to AU$13 billion for FY2022.
- On 30 June 2022, Funds Under Management (FUM) was AU$13.1 billion.
- During the June quarter, the company delivered FUM net inflows of AU$0.4 billion and FUA net inflows of AU$2.7 billion. As per the ASX release, the June quarter was solid but witnessed difficult industry conditions such as adviser regulatory requirements and market volatility.
- The member accounts increased by 4.1% during the quarter to reach 115,642.
Outlook
The company did not share the earnings guidance but said it has a strong financial position. Its new business has delivered a strong win rate across key market segments such as small institutions and the mid-market.
Netwealth reportedly said that its strong financial position is driven by strong EBITDA margins, a high correlation between operating cash flow and EBITDA, low capital expenditure and high levels of recurring revenue.
Awards and recognition during the June quarter
For the fifth year in a row, the company bagged the “Best Advised Product of the year” for the Netwealth Super Accelerator product.
The company received the “Best for Ease of Onboarding”, “Best Overall Functionality”, and “Best Client Experience” awards in April 2022.
About Netwealth
Established in 1999, Netwealth is a technology company, an administration business, and a superannuation fund trustee. The company offers superannuation and non-superannuation platform products, managed funds and managed accounts. The company has evolved into one of Australia’s fastest-growing wealth management groups, Netwealth said in a statement.
