Netwealth sees FUA boost but outflows remain elevated
Netwealth has seen funds under administration increase by $4.4 billion but says outflows remain elevated.
Reporting its quarterly business results for the three months to 30 June, the firm said funds under administration (FUA) increased by $4.4 billion to $70.3 billion, comprising net inflows of $3.2 billion and positive market movements of $1.2 billion.
Funds under management (FUM) increased by $0.6 billion to $16 billion divided between $13.6 billion in managed accounts and $2.3 billion in managed funds.
Managed account balances increased by $0.6 billion to $13.6 billion, up from $11.1 billion in June 2022.
A year ago, FUM was $13 billion and FUA was $55.6 billion.
Member accounts increased by 127,507 that was an increase of 3,858 accounts during the quarter. There was also a large institutional account opened of $1.2 billion.
The firm said outflows during the quarter are at “elevated levels” and that they primarily relate to clients partially withdrawing funds to invest in off-platform investments including term deposits and other alternative investments and large partial withdrawals from high-net-worth and large accounts.
FUA custodial outflows were $3.1 billion in the June quarter following $2 billion in outflows in the preceding two quarter. However, the June quarter outflows were offset by custodial inflows of $6.1 billion.
Grant Boyle, chief financial officer, said: “Throughout the June quarter, we experienced significant growth and establishing new partnerships with advisers and licensees. This success has further reinforced our confidence in both our transition pipeline and the potential for new business opportunities. We remain optimistic about our ability to consistently attract substantial net inflows from all our key market segments in the foreseeable future.
“Despite strong inflows during the quarter, the prevailing economic uncertainty and its impact on investor sentiment have resulted in delays in committed transitions and new business activities for our existing clients. Moreover, the current market conditions have continued to make it challenging to estimate timing of these transitions on a monthly or quarterly basis.”
AUTHOR
Laura Dew
Recommended for you
Unregistered managed investment scheme operator Chris Marco has been sentenced after being found guilty of 43 fraud charges, receiving the highest sentence imposed by an Australian court regarding an ASIC criminal investigation.
ASIC has cancelled the AFSL of Sydney-based Arrumar Private after it failed to comply with the conditions of its licence.
Two investment advisory research houses have announced a merger to form a combined entity under the name Delta Portfolios.
The top five licensees are demonstrating a “strong recovery” from losses in the first half of the year, and the gap is narrowing between their respective adviser numbers.
