Netwealth has announced record profits of $67.2 million as it looks to secure several important new licensee relationships and new accounts in the year ahead.
Funds under administration rose to $70.3 billion, representing 26.3 per cent growth, and its market share is now 6.7 per cent.
According to chief executive and managing director, Matt Heine, FY2022-23 was a fantastic year for Netwealth with many strategic and financial milestones met.
“For the first time we surpassed $100 million EBITDA and delivered an EBITDA margin of 46.9 per cent. Our record profit of $67.2 million represents a 20.9 per cent increase from last year’s result,” he said.
Throughout the year, it expanded its platform products and services and introduced a raft of new features, including its Wealth Accelerator Multi-Asset Portfolio Services, launched in April 2023, with $226 million of non-custodial FUA onboarded.
In the last 12 months, Netwealth stated it saw the highest FUA net inflows of industry platforms at $9.4 billion which represented 66.2 per cent, compared to 45.6 per cent in the prior year.
It echoed recent analysis by research house Plan for Life, which saw the FUM of the top four platforms (BT, Commonwealth/Colonial, AMP and Insignia) decline while platforms like Netwealth and HUB24 experienced double-digit gains.
Netwealth was recently named in the top three platforms based on advisers’ experience in the Adviser Ratings Musical Chairs report for the second quarter of 2023, alongside HUB24 and CFS FirstChoice, and won praise for its range of investment options and adviser functionality and experience.
The firm noted managed account balances increased from $2.4 billion to $13.6 billion, which consisted of $1.6 billion in net inflows and $0.8 billion in market movements.
Meanwhile, client accounts were 127,507, an increase of 11,865 or 10.3 per cent to FY22.
Following these promising results, Netwealth’s next strategic initiative will be the relaunch of an upgraded Core product in September, targeting cost-conscious investors. This is expected to boost market presence in both the mass affluent and emerging affluent segments, and generate new streams of revenue.
It will feature an expanded investment menu of 48 multi-asset managed models and competitive pricing structure, and complements the firm’s other offerings, Heine said.
Another key initiative is a series of generative artificial intelligence experiments and potential platform features to leverage the capabilities of the technology, it said.
“As we enter FY2024, our current FUA is at an all-time high of $72.2 billion, our market share is continuing to increase, our sales pipeline is strong and diverse both geographically and across market segments, and we have successfully secured several important new licensee relationships that have begun transitioning and funding new accounts,” Heine stated.
