Netwealth Group Limited, a financial services company, engages in the wealth management business in Australia.
Netwealth Group Limited (ASX: NWL) has delivered another exceptional performance in the December 2024 quarter, setting new benchmarks across key business metrics. Funds Under Administration (FUA) achieved record net inflows of $4.5 billion, marking a 69.8% increase compared to the prior corresponding period. This growth pushed total FUA to $101.6 billion, representing an impressive 30.2% year-on-year increase. Following the release, Netwealth’s shares rose by 1.04%, outperforming the broader ASX200’s 0.5% increase on Thursday.
The record inflows were driven by consistently strong transitions from existing financial intermediaries, complemented by high conversion rates from the company’s new business pipeline. Total FUA inflows for the quarter reached $7.8 billion, while outflows remained stable for the third consecutive quarter. Institutional FUA contributed significantly, with $517 million in net inflows, reflecting the company’s diversified and well-balanced client base.
Funds Under Management (FUM) also saw a strong quarter, increasing by $1.5 billion to $24 billion. Managed accounts were a standout performer, with balances rising by 7% to $20.8 billion. Net inflows into managed accounts contributed $1.1 billion, further reinforcing Netwealth’s ability to attract clients across its product offerings.
Operational enhancements continued to underpin the company’s strong performance. Key updates included the redesign of the portfolio page, providing clients with a unified ‘whole of wealth’ view, and the addition of digital consent features in the mobile app. Adviser workflows were further streamlined through tools like the Workflow Tracker and online functionality for transferring non-custodial assets.
Netwealth remains confident about its growth trajectory. While seasonal trends may result in lower inflows in the March quarter, the company expects strong contributions for the remainder of FY2025. Strategic investments in technology, security, and client-focused solutions aim to sustain long-term profitability and drive meaningful client outcomes.
Backed by a strong financial position, with high recurring revenue, no debt, and significant cash reserves, Netwealth continues to solidify its leadership in Australia’s wealth management sector. Its consistent delivery of innovation and operational excellence ensures its ongoing relevance and reinforces its inclusion in the ASX Growth portfolio.
