Netwealth cashes in on industry transformation

As at the end of the 2020 year, Netwealth had $38.8 billion in funds under administration (FUA), a 36.1 per cent rise ($10.3 billion) on the prior corresponding period (pcp). 

There had been $2.6 billion in net inflows for the December quarter, contributing to its FUA net inflows of $9.2 billion for the 2020 calendar year. 

Funds under management as at 31 December were $9.3 billion, rising by 15.5 per cent (or $1.3 billion) for the final quarter. During the three months, there had been FUM net inflows of $700 million and market movement of $500 million. 

Meanwhile the managed account segment pulled strong results, with its balance of $7.6 billion surging by 74.1 per cent on the pcp. There had been net flows of $3.2 billion for the 2020 year, a 63.9 per cent increase.  

While the impacts of COVID-19 had shaken the stability of global markets, Netwealth has signalled it expects to benefit from ongoing industry consolidation and change. 

The wealth platform has forecast FUA net inflows in the range of $8.5 billion to $9 billion, a fair rise on its previous expected inflows of $8 billion. 

Netwealth managed to record the largest FUA net inflows of $9.5 billion in the industry for the 12-month period to 30 September. 

The company is the seventh-largest platform provider in the market, with a market share of 4.1 per cent, which has increased by 1.2 per cent over the year to 30 September. Ahead of it are BT/Westpac, AMP, CBA/Colonial, NAB/MLC and IOOF Group. 

Netwealth appears to be ahead of smaller platform providers such as HUB24 and Xplore Wealth.

BT/Westpac had the largest slice of the market, with 18.5 per cent.

But Netwealth has claimed to be the fastest-growing platform operator by net inflows over the 12 months to September, with 38 per cent growth.

In other news, the group’s chair and director Jane Tongs has retired, with the intention to leave following Netwealth’s half-year results release on 17 February. 

Fellow board director Tim Antonie will be replacing Ms Tongs in the chair seat. He has been with the company since 2015.

Ms Tongs has been chair of all Netwealth companies since it was founded more than 20 years ago. Reportedly, her decision was based on her belief that board renewal is a key governance matter and that it was the time to pass the baton.

Affirmative Investment Management partner Kate Temby has also been appointed as a new independent non-executive director.