Netwealth managed account net flows up 49% in Q3

Netwealth has reported record quarterly net flows to managed accounts in the September quarter, along with strong growth in total funds under administration (FUA) on the platform over this period.

In an ASX announcement, Netwealth reported net flows of $1.58 billion to managed accounts in the September quarter, marking an increase of 49.4 per cent from $1.06 billion the previous quarter.

Managed account funds under management (FUM) made up some 21.3 per cent of total FUA on the platform.
This, the firm explained, is a result of strong organic growth in this product and advisers’ recognition of Netwealth’s managed account capabilities, as well as the benefits of utilising such products. During the September quarter, Netwealth added some 44 new managed account models to the platform.

Taking a wider lens, the platform reportedly hit $120.8 billion in total FUA, as at 30 September, up 26.6 per cent on the prior corresponding period. This was supported by an increase of $8 billion for the September quarter, including FUA net flows of $4.1 billion and positive market movement of $3.9 billion, bringing Netwealth’s total FUA to $120.8 billion.

Netwealth said: “FUA net flows continued to benefit from ongoing transitions from existing financial intermediaries as well as new accounts from new intermediaries.”

Meanwhile, the number of accounts on the platform also continued to grow, now sitting at 167,380, marking a 13.7 per cent increase on September last year, which was sitting at 147,165.

Marking another milestone for Netwealth, the platform saw non-custodial FUA exceed $1 billion for the first time, jumping 82.4 per cent from $560 million in the 2024 September quarter.

Looking at changes for the platform over the latest quarter, Netwealth announced a partnership with FinClear, an independent technology and infrastructure provider for financial market access, in September.

Through this partnership, FinClear has provided advisers and their clients with individual holder identification number (HIN) data to streamline adviser processes when it comes to HIN holdings, while simplifying trade and enabling access to custodial assets, such as managed funds, international equities, domestic and foreign bonds, or managed account models.

During this period, the platform also announced it would be launching Netwealth Private, a service targeting HNW and UHNW advice clients, set to be available in Q4 for select advice groups.

Netwealth has also recently seen itself caught up in the Shield and First Guardian situation due to Netwealth having hosted the now controversial funds on its platform.

Touching on this, Netwealth said: “Our position remains that the First Guardian matter is a case of fraud and that Newealth has complied with all relevant legal obligations. We acknowledge that ASIC’s work is ongoing. While it will take time for the relevant regulatory and legal processes to take their course, Netwealth’s response will be guided by its values and its customers.

“Netwealth continues to explore all avenues available to assist our members in recovering some or all of their investments in First Guardian, while supporting members’ wellbeing. We remain active in communicating updates to our advisers and members.”