The Netwealth Group Ltd (ASX: NWL) share price charged 9% higher to a record high of $17.42 on Thursday morning following the release of its first quarter update.
The investment platform provider’s shares have dropped back a touch since then but are still up 5% to $16.72 at the time of writing.
How did Netwealth perform in the first quarter?
During the three months ended 30 September, Netwealth recorded an 8% or $2.5 billion increase in funds under administration (FUA). This was driven by net inflows of $1.9 billion and favourable market movements of $0.6 billion.
Netwealth’s net inflow of $1.9 billion was an increase of $0.4 billion or 29.1% on the prior corresponding period.
Also increasing during the quarter was the company’s funds under management (FUM). At the end of September, its FUM stood at $8.1 billion, up $0.8 billion for the quarter. This includes Managed Account net inflows of $0.7 billion.
This means the company’s Managed Account balance has now reached $6.5 billion, up 109.7% on the prior corresponding period.
How does its growth compare to its rivals?
According to the release, the latest Strategic Insights platform market update shows that Netwealth is growing more than rivals such as HUB24 Ltd (ASX: HUB) and Praemium Ltd (ASX: PPS).
For the quarter ending 30 June 2020, Netwealth recorded the largest quarterly FUA net inflows of $1.5 billion. This was 40% higher than its nearest competitor.
It was the same story for its 12 month rolling net inflows. The company’s FUA net inflows came in at $9.1 billion for the 12 months to 30 June. This means Netwealth had the highest 12-month net fund flows for the ninth consecutive quarter.
This has helped increase Netwealth’s market share to 3.8%, up 1.1% for the year. Which makes the company the 7th largest platform provider in the market today.
No guidance was provided for either the remainder of the first half or FY 2021.
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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Hub24 Ltd and Praemium Limited. The Motley Fool Australia owns shares of Netwealth. The Motley Fool Australia has recommended Hub24 Ltd and Praemium Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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