While the pending rising tide on the ASX - following the 6.62% jump in the ASX/SPI200 overnight - will float all boats today, Netwealth Group (ASX: NWL) may outperform the market after an announced record-breaking performance for the March 2025 quarter.
Despite ongoing market volatility and market conditions, the Melbourne-based investment platform says it’s on track for a record year of funds under advice (FUA) net flows.
FUA were up 29% year on year to $104.1 billion, driven by net inflows of $3.5 billion and partly offset by $1 billion in negative market movements.
Net inflows totalled $12 billion for the financial year to date, up 61% on the previous period, while net inflows reached $15.8 billion for the last 12 months, up 49% on the previous year.
Overall, the total number of accounts increased by 4,301 for the quarter to 155,738 as at 31 March, up 13% from the preceding 12 months.
Management attributes recent growth to high transition rates from existing financial intermediaries and strong new business conversions.
What’s also protecting Netwealth from current market fluctuations is the company’s diversified revenue sources and portfolio across various asset classes.
Looking forward
Added to their strong net flows in April were the recent acquisitions of Xeppo and mobile app Flux.
The company expects FUA net flows to be seasonal strong in the June quarter.
Management noted that its net flows outlook for fiscal 2026 and beyond is supported by a "robust transition pipeline" and new client wins.
In the latest Plan for Life industry analysis as at 31 December 2024 Netwealth had:
The second highest platform in 12-month net flow for the 12 months to 31 December 2024.
The 6th largest platform with 8.5% market share, up 1.0% for the 12 months to 30 December 2024.
“We expect the strong adoption of managed accounts to continue as advisers focus on efficiency and automation,” the company noted.
“The benefits of managed accounts, and ability to rebalance portfolios quickly and at scale in response to volatile market conditions allows advisers to focus on new and existing client relationships.”
NetWealth's market cap is $5.5 billion; the share price is up 11 in one year and down 21% year to date.
The stock’s shares are in a downtrend that has been confirmed over multiple periods.
Consensus is Hold.
The share price opened 11% higher today.
This article does not constitute financial or product advice. You should consider independent advice before making financial decisions.