Netwealth healthy despite decline in inflows
Platform provider Netwealth has revised downwards its full year funds under management (FUM) and net inflows but is claiming to be otherwise so far unaffected by the market volatility created by the COVID-19 pandemic.
In a market outlook statement released on the Australian Securities Exchange (ASX) the company said that despite recent adverse equity markets, it remained in a very strong financial position, debt free, with significant cash at bank and highly profitable.
It said that, despite a reduction in FUA due to falling global equity markets, Netwealth’s revenue and profitability had been resilient largely due to increased transactions, ancillary revenues and the cushioning impact of sliding administration fee scales and fee caps.
The ASX announcement said that following the Reserve Bank rate cut of 25 basis points Netwealth had amended its outlook to reflect the impact of the cut on its ancillary revenue, “given Netwealth will absorb this reduction in respect to our client’s cash transaction accounts”.
The company forecast full year 2020 revenue to be in the range of $116 million to $120 million with underlying EBITDA to be in the range of $58 million to $62 million.
Recommended for you
LGT Wealth Management is maintaining a neutral stance on US equities going into 2026 as it is worried whether the hype around AI euphoria will continue.
Tyndall Asset Management is to close down the Tyndall brand and launch a newly-branded affiliate following a “material change” to its client base.
First Sentier has launched its second active ETF, offering advisers an ETF version of its Ex-20 Australian Share strategy.
BlackRock has revealed that its iShares bitcoin ETF suite has now become the firm’s most profitable product line following the launch of its Australian bitcoin ETF last month.
