Shares in Netwealth (ASX: NWL), a current holding within the value component of the ASX Growth portfolio, has today risen 4.4% after the wealth management company released strong quarterly results for the period ending September 2024, reflecting robust growth in both funds under administration (FUA) and funds under management (FUM). Today’s gains take our profit on the position to 35% having entered in March 2024.
The company reported FUA net inflows of $4.01 billion, a 5.6% increase from the previous quarter’s $3.8 billion, bringing its total FUA to $95.42 billion, up from $88 billion—an 8.4% rise. This represents a record quarter for the company, which has attributed its success to continued strong client demand and several large groups transitioning their business onto the platform.
Netwealth’s FUM also saw a significant jump, ending the quarter at $22.47 billion, up 9.7% compared to the previous period. The number of member accounts increased by 2.7% to 147,165, underscoring the platform’s ability to attract new clients. The company noted that it continues to enjoy a strong pipeline of new business, and many of these large client transitions are still in the early stages. This bodes well for further inflow growth and positions Netwealth favorably for the remainder of FY25.
In addition to its record-breaking inflows, Netwealth announced the appointment of Hayden Stockdale as its new Chief Financial Officer, effective November 25. Stockdale brings extensive experience in financial strategy and management, having previously held senior positions across the finance sector. His appointment is expected to strengthen the company’s executive team and support its strategic vision moving forward.
With a strong start to FY25, Netwealth is projecting a positive outlook for the rest of the financial year. The continued integration of large client groups and the momentum in new business inflows should underpin solid growth in the coming quarters. As a result, the company remains confident in its ability to achieve higher FUA and FUM levels, further cementing its position as a leading player in the Australian wealth management industry.
As a reminder, NWL’s inclusion in ASX Growth is based on fundamental criteria such as profitability and valuation. The portfolio is next due to be rebalanced on October 15th, and at this stage there are no indications NWL would be removed from the portfolio.
