Bullish Netwealth says insto platforms are losing market share
The top four institutionally-owned platforms holding 64.4% market share are losing ground, according to competitor platform, Netwealth.
At the same time as releasing its full-year results revealing a 30.9% increase in net profit after tax to $67.2 million, Netwealth took a swipe at Insignia, BT, Colonial First State and AMP pointing to their loss of market share.
At the same time, Netwealth claimed to be the fastest-growing platform by net funds flows.
Citing Plan for Life data, Netwealth used an investor briefing to point to the fact that Insignia’s platforms had lost 0.5% of its market share between March, last year, and March this year, while BT/Westpac had lost 0.9%, CFS had lost 0.4% and AMP had lost 0.4%.
The Netwealth briefing has also claimed that the institutionally-owned platforms have been losing funds under management over the same period with Insignia down $1.9 billion, AMP down $2.3 billion, Colonial First State down $3.3 billion and BT down $6.9 billion.
At the same time, it said that Netwealth’s market share had increased to 6.7% and that its market share for the seven years to 31 March had grown by 5.6% while, over the same time span, the legacy platforms had 14%.
Netwealth’s $62.7 million 11.6% increase in net profit was underpinned by a 21.6% increase in total income to $214.7 million and $9.9 billion in net inflows to funds under advice.
The directors declared an annual dividend of 24 cents per share, fully franked, up 20% over the previous year.
The company announced that it would next month be launching an upgraded version of its Core product which it said would significantly boost its presence in both the mass affluent and emerging affluent segments.
The enhanced product entails a significantly expanded investment menu o 48 Multi Asset managed models and what Netwealth is describing as “a highly competitive pricing structure”.
Of course the Insto platforms will drop as they don’t have the vertically owned Advisers putting client money in.
And Macquarie Wrap have gone from great to a basket case in last 3 years.
Advisers then look to Netwealth and Hub24 as the best options.
Let’s hope these guys continue to do a good job.
Not sure how long it will last based on negative feedback from Advisers about Netwealth not paying distributions, website crashing at critical times, poor attempts at resolving problems, etc., etc. Adviser feedback suggests Hub is a better option so hopefully the problems are with Netwealth only and not industry wide.