Netwealth’s FUA reaches $28.5b
Netwealth has reported a record funds under administration (FUA) of $28.5 billion at the end of the 2019, representing an increase of $3.2 billion for the quarter and $9.5 billion for the year to December 2019.
At the same time, FUA net inflows for December 2019 amounted to $2.9 billion for the December quarter, and represented an increase of $2 billion compared to prior corresponding period.
The growth in FUA net inflows came from both existing and new licensees, with the largest individual licensee accounting for approximately 38% of FUA net inflows in the quarter, the firm explained in the announcement made to the Australian Securities Exchange (ASX).
Funds under management at December, 2019, stood at $5.7 billion, representing an increase of $1.3 billion for the quarter while at the same time, managed account at the end of December stood at $4.4 billion, an increase of $1.3 billion for the quarter.
However, pooled cash as a percentage of FUA reduced to 7% of FUA, as of 31 December 2019, and reflected seasonal factors and the higher proportion of FUA held in the managed account and the wrap service which typically held lower cash balances than the superannuation fund.
“With the end to all grandfathered commissions by 31 December, 2020 we expect significant transition opportunities as advisers seek more competitive pricing and greater functionality,” the firm said.
“Following a better than expected 1H 2020 FUA net inflows and to reflect the impacts of 1H 2020 market movements, we increase our FUA outlook from $30 billion to exceed $32 billion at 30 June 2020 (assumes no further market movement in second half of FY2020).”
AUTHOR
Oksana Patron
Recommended for you
The Reserve Bank of Australia has delivered its first rate decision since the introduction of a new board structure last month.
ASIC was active in the first quarter of 2025 with several financial adviser bannings and court action, while the FSCP also handed down outcomes to advisers.
With a joint venture announced between WT Financial and Merchant Wealth Partners, the firm may have a US background, but partner David Haintz has a long history with Australian financial advice.
The big four bank is set to see $40 million per annum in cost savings as it continues to migrate customers from its Asgard wealth platform to BT Panorama by FY26.
