Netwealth FUA rises 25% amid strong adviser pipeline
Netwealth has seen a “strong start to the year” and is hopeful of benefitting from the AMP divestment with new clients coming to the platform.
In its full-year results for FY2023–24, the firm said funds under administration (FUA) was $88 billion, up 25 per cent from a year ago.
This was helped by net inflows of $11.2 billion, up from $9.9 billion a year ago, and positive market movement of $6.5 billion.
FUA was divided between 60 per cent in retail, 22.4 per cent in high-net-worth (HNW) clients, 10.2 per cent in ultra-HNW, and 6.8 per cent from institutional.
The average account size increased from $521,000 to $583,000, which Netwealth said was driven by success in the HNW space and private client segments.
Statutory net profit after tax (NPAT) was $83.4 million, an increase of 24.1 per cent over the year from $67.2 million.
Platform revenue was $249.5 million, which was up 18 per cent from $211.5 million a year ago.
There was a 7 per cent increase in use of the platform by financial intermediaries, which was up from 3,512 to 3,759. The platform said it is hopeful of benefiting from the AMP advice exit.
In a shareholder webinar, chief executive Matt Heine said: “The news is less than a week old and we work closely with AMP and get good support from them. But Entireti and Fortnum practices are all good supporters of us and we have a good working relationship with them so we imagine this should be a really good opportunity for us as a result.”
The firm also expanded its adviser and licensee relationships, and noted significant new client wins had begun transitioning flows onto the platform. New financial intermediaries contributed 17 per cent of net inflows in FY24.
“2023 was a pretty tough year, we recorded good inflows but a lot of transitions that we had won were paused. These have really started to gather pace in FY24. So the backlog of opportunity and business transition from FY23 has kickstarted,” Heine said.
“We are confident in our outlook and future growth opportunities which we believe are very significant.”
AUTHOR
Laura Dew
Recommended for you
With an advice M&A deal taking around six months to enact, two experts have shared their tips on how buyers and sellers can avoid “deal fatigue” and prevent potential deals from collapsing.
Several financial advisers have been shortlisted in the ninth annual Women in Finance Awards 2025, to be held on 14 November.
Digital advice tools are on the rise, but licensees will need to ensure they still meet adviser obligations or potentially risk a class action if clients lose money from a rogue algorithm.
Shaw and Partners has merged with Sydney wealth manager Kennedy Partners Wealth, while Ord Minnett has hired a private wealth adviser from Morgan Stanley.
