Market volatility not enough to dampen Netwealth’s FY26 outlook

In the three months to 31 March 2025, the wealth management platform’s funds under administration (FUA) rose $2.5 billion – or 2.5 per cent – from $101.6 billion in the previous quarter to $104.1 billion.

This included FUA net flows of $3.5 billion, down 22 per cent from net flows of $4.5 billion in the December quarter, which were offset by negative market movements of $1 billion.

“Despite volatile market movements towards the end of the quarter, the negative impact from FUA market movement was only 1 per cent of total FUA, or $1 billion,” Netwealth said.

Its FUA net flows continue to be underpinned by “consistently high transition rates” from existing financial intermediaries, alongside strong conversion rates of new business from a range of client groups.

With net flows remaining strong in April despite market volatility, Netwealth said it expected FUA net flows for the June quarter to be “seasonally strong”.

Moreover, the platform is on track to achieve a record year of FUA net flows, it added, having gained $12 billion in net flows for the financial year-to-date.

“We remain confident in our net flows outlook for FY26 and beyond, which is supported by a robust transition pipeline and new client wins,” the ASX announcement read.

“To capitalise on both existing and emerging market opportunities, and to drive sustainable profit growth and innovation, we will continue to invest in our people, products, security, and technology capabilities. This level of investment will continue into FY26.”

The total number of accounts rose by more than 4,300 to 155,738, while FUM net flows for the quarter were $1 billion. This was coupled with negative market movements of $300 million, leading FUM to increase by $700 million to $24.8 billion.

Looking at managed accounts, the division saw net flows of $900 million and negative market movements of $300 million. This created a growth of $600 million to $21.4 billion in managed accounts for the quarter.

Netwealth said it projects the strong adoption of managed accounts to continue as advisers focus on efficiency and automation within their businesses.

“The benefits of managed accounts, and ability to rebalance portfolios quickly and at scale in response to volatile market conditions, allows advisers to focus on new and existing client relationships.”

Earlier this year, Investment Trends named Netwealth the second-highest platform for overall functionality with a score of 90.3 per cent, behind HUB24 in the top position at 94 per cent.

Praemium came in third at 89.2 per cent, BT Panorama at 85.3 per cent, and North at 83 per cent.