Powered by MOMENTUM MEDIA
moneymanagement logo
 
 

New advisers drive 25% FUA growth at Netwealth

netwealth/artificial-intelligence/matt-heine/platforms/

21 February 2024
| By Jasmine Siljic |
image
image image
expand image

Netwealth’s funds under administration (FUA) has risen to $78 billion with net inflows of $9.5 billion, largely underpinned by a new cohort of financial advisers adopting the platform.

Reporting its results for the first half of the 2024 financial year (1H24), Netwealth said its FUA grew by $15.6 billion (24.9 per cent) to $78 billion from $62.4 billion in the previous period.

This was driven by FUA net inflows of $9.5 billion and positive market movement of $6 billion. As of 16 February, the platform’s FUA stands at $80.8 billion.

Matt Heine, Netwealth chief executive and managing director, said new clients are expanding with 20 per cent of all new FUA net inflows coming from new financial advisers and intermediaries.

“It’s really that cohort of advisers that will produce significant flows now for the next three years,” the CEO explained. “Our new business pipeline and conversion rates across all segments remain strong giving us confidence in our outlook and future growth opportunities which we believe are significant.”

“Our roadmap is focused on enhancing and extending our current product and technology capabilities to address the substantial number of existing and emerging opportunities in the market.”

During the period, Netwealth introduced new advice fees where advisers and clients can agree to adjust or exclude percentage-based advice fees on term deposits, cash, annuities or a combination thereof.

Moreover, a strategic partnership between Netwealth and iCapital will mean exclusive access for advisers and their wholesale clients to offshore private markets and managers.

The 1H24 period saw funds under management (FUM) rise by $3.6 billion (25.2 per cent) to $18.1 billion, divided by $15.5 billion in managed accounts and $2.5 billion in managed funds. Net inflows to managed accounts grew from $868 million to $1.3 billion, but those into managed funds declined from $328 million to $168 million.

Statutory net profit after tax (NPAT) was $39.3 million, an increase of 28 per cent from $30.6 million in the prior corresponding period.

Netwealth also remains focused on deploying artificial intelligence (AI) to sit as a core component of its internal efficiencies, which will enhance existing services and further support advisers. It hopes to bring a number of new AI-related services to the market over the next six to 12 months.

This includes its use for compliance data management and risk assessments, automation of back-office tasks, adviser account alerts and cyber security.

“AI is, and will, drive efficiencies, enhance services, improve reporting, and support advisers and clients in new ways,” Heine said.

The firm previously said it will look to explore AI’s transformative opportunity in financial advice by leveraging technology from OpenAI, Microsoft and other software vendors.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

Significant ethical issues there. If a relationship is in the process of breaking down then both parties are likely to b...

5 days 23 hours ago

It's not licensees not putting them on, it's small businesses (that are licensed) that cannot afford to put them on. The...

1 week 5 days ago

So we are now underwriting criminal scams?...

6 months 2 weeks ago

After last month’s surprise hold, the Reserve Bank of Australia has announced its latest interest rate decision....

1 week ago

Libby Roy has been appointed as an independent non-executive director on the board of AZ NGA....

4 weeks ago

A professional year supervisor has been banned for five years after advice provided by his provisional relevant provider was deemed to be inappropriate, the first time th...

2 weeks 6 days ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
74.26 3 y p.a(%)
3