Netwealth reports record quarterly FUA rise
Netwealth has seen a $7.4 billion rise in funds under administration (FUA) over the September quarter, its highest-ever quarterly growth.
Netwealth confirmed that its FUA as at 30 September 2024 stands at $95.4 billion, up from $88 billion in the June quarter.
The $7.4 billion FUA rise was driven by net inflows of $4 billion, up 93 per cent on the prior corresponding period, and a positive market movement of $3.4 billion.
Its funds under management (FUM) rose by $2 billion throughout the quarter to $22.5 billion, thanks to FUM net inflows of $1.4 billion.
Netwealth added that it has continued to enjoy strong growth in accounts and strengthened its new adviser and licensee relationships as well as its new business pipeline.
Several new large groups have begun transitioning their clients to the platform, with a number of these deals in the early stages. This provides a “high level of confidence in our net inflows outlook for FY2025”, it stated.
Moreover, Netwealth also announced it has appointed Hayden Stockdale as its new chief financial officer following an extensive search, effective on 25 November.
Stockdale’s career began in the finance and investment banking industry at UBS Investment Bank, Deutsche Bank and Goldman Sachs. He has held several CFO positions, including most recently at property management software RMS Cloud.
He will take over from the firm’s current CFO, Grant Boyle, who has held the executive position since 2017, and indicated that he would be stepping down earlier this year.
“We look forward to welcoming Hayden to the team and are confident his extensive experience in financial management and strategic planning from various multinational technology businesses will drive Netwealth’s continued success,” said Matt Heine, chief executive and managing director.
The CEO also thanked Boyle for his time at the firm: “Grant joined in 2017 and has been instrumental in our success from IPO to today with a focus on delivery of sustainable growth and performance. His expertise has been invaluable to our team, stakeholders and shareholders, and he will be missed.”
M&A update
In addition, Netwealth agreed to acquire 100 per cent of the shares in enterprise software company Flux Corp on 9 October for an upfront consideration of $2.5 million. The firm produces financial tools and content for the emerging mass and emerging affluent markets.
Commenting on the deal, Heine said: “It is a great addition to our business and provides a simple entry point to financial education for many Australians who often do not know where to begin their journey.”
The company has also made “significant progress” in integrating data management and analytics tool Xeppo since it was acquired on 12 August 2024, and is looking to explore further opportunities for growth.
AUTHOR
Jasmine Siljic
Recommended for you
Selfwealth has provided an update on the status of its scheme implementation deed with Bell Financial Group as well as whether rival bidder Svava remains in the picture.
Magellan Financial Group has reported its first half FY25 results while appointing a new chief financial officer and promoting Sophia Rahmani to chief executive.
Schroders Australia has launched two active ETFs and plans to further expand its listed range over the year ahead.
Platform Netwealth has reported its financial results for the first half of FY25, reporting an 80 per cent increase in net flows, with its CEO viewing a “huge opportunity” from private assets.
