Funds under management rose 110% for Netwealth’s managed accounts, a record year of net inflows, as the firm releases its results for FY2020.
In an announcement to the Australian Securities Exchange (ASX), the wealth management business said the managed account balance was $5.8 billion.
This was an increase of $3 billion, some 110%, during the year after record inflows of $3.3 billion were offset by negative market movements of $0.3 billion.
Total funds under management were $7.3 billion as at 30 June, 2020 while funds under administration were $31.5 billion, a 30% increase.
Operating expenses increased by $12 million during the year as a result of strategic investments across IT infrastructure, people and software to support ongoing growth and market-leading position.
Netwealth’s board announced a fully franked dividend of 7.8 cents per share totalling $18.5 million for H2 2020 which was payable on 24 September, 2020.
Matt Heine, joint managing director of Netwealth, said technology was a key area for the firm going forward.
“We have delivered strong revenue and profit growth whilst strategically investing across people, software and IT infrastructure focused on stability, stability, flexibility and scalability. We will continue to strategically increase our investment in these areas.
“Recognising the importance of client service, we are also focused on enhancing our services channels through investment in people, process and smart technology.”
He said Netwealth was well placed for the new environment and said high net worth individuals represented a “significant growth opportunity”.
“We expect to continue to benefit from the significant changes currently reshaping the industry and remain positive about the future and continued market share growth.
“In addition to growing market share within the affluent advice segment, the high net worth and private wealth groups represent a significant growth opportunity for the industry. Netwealth is well placed to support the unique and differentiated needs of the segment.”