Netwealth (ASX:NWL) share price jumps 10% following record quarter

Record-breaking inflows have shone a light on Netwealth shares today…
The post Netwealth (ASX:NWL) share price jumps 10% following record quarter appeared first on The Motley Fool Australia. –

The Netwealth Group Ltd (ASX: NWL) share price is pushing higher on Thursday. This follows the financial management software company’s September quarterly update.

At present, shares in Netwealth are swapping hands at $15.80, a 10.57% increase.

What’s lifting the Netwealth share price today?

In an announcement released this morning, Netwealth has surpassed all previous quarterly funds under administration (FUA), setting a record in the September quarter.

At 30 September 2021, the company held $52 billion in FUA, representing an increase of 10.2% for the quarter. Notably, this indicates a significant 52.7% increase compared to the prior corresponding period.

Meanwhile, the funds under management (FUM) portion of the business also experienced reasonable growth in the latest quarter. Specifically, FUM at the end of the period stood at $12.6 billion, increasing 56.9% from the prior corresponding period. The distinct surge in funds has investors bidding up the Netwealth share price today.

However, the fastest-growing segment was Netwealth’s managed account balance. At the end of September, managed accounts totalled $10.7 billion, increasing 63.6% from the prior corresponding period.

As a result, the financial platform has retained its spot as the sixth largest and fastest-growing platform provider by net funds flows in Australia. Currently, the company holds a market share of 4.9%, while Macquarie (in the fifth spot) holds an 11.2% market share.


Shifting our gaze to the future of the company, Netwealth shared a positive outlook for its market potential. This is thanks to the ongoing structural changes within the financial services industry.

Consequently, the company believes this will support further increases in its addressable market and growth opportunities. Building on that, Netwealth mentioned its pipeline for new business remains very strong across all market segments.

Finally, as a result of the stellar record net inflows in the September quarter, the company has upgraded its FUA net inflow guidance for FY2022. Now Netwealth forecasts FUA net inflows of $12.5 billion for the financial year, as opposed to its previous $10 billion guidance.

Despite these achievements, the Netwealth share price is still down approximately 20% over the past year.

The post Netwealth (ASX:NWL) share price jumps 10% following record quarter appeared first on The Motley Fool Australia.

Should you invest $1,000 in Netwealth Group right now?

Before you consider Netwealth Group, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Netwealth Group wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

Why Alumina, Aurelia Metals, Netwealth, & Piedmont Lithium are storming higher

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Netwealth. The Motley Fool Australia owns shares of and has recommended Netwealth. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!