Netwealth’s FUA up in Q422

Oksana Patron

20 January 2023

Netwealth has posted an increase of $4.3 billion (7.4%) to $62.4 billion in funds under administration (FUA) at the end of the December quarter and reported an increase in expenses in 1H2023, driven by its 2022 initiatives which included investments in people and technology.

The increase of FUA for the December quarter comprised net inflows of $2.1 billion and positive market movement of $2.2 billion.

For the 12 months to December Netwealth reported a 10.2% growth in its FUA to $5.8 billion despite negative market movement of $4.6 billion.

At the same time, managed account balance improved by 6.5% ($0.7 billion) and stood at $12.2 billion at the end of December.

Netwealth, which announced an expansion of its market share to 6.3% at the end of September 2022, said it made last year investments in technology and increased its headcount by 27 and the impact of those initiatives “combined with returning to a post-covid business environment” resulted in expenses increase in 1H2023.

Following this, the firm said it intended to continue investments in its people into FY2023 however “at a significantly slower rate than 1H2022”.

“Despite challenging markets, we have seen good growth in our funds under administration and managed account, supported by strong funds flow from a diversified client base,” commenting on the results and outlook, Netwealth’s managing director, Matt Heine, said.

“Our pipeline and win rate for new business remains very strong across all key market segments and we are optimistic about our continued growth.”