Netwealth posts record FUA as managed accounts top $30bn

Netwealth has capped off another record year, growing funds under administration (FUA) to $135.7 billion as strong adviser inflows and improving markets offset elevated withdrawals from a handful of ultra-high-net-worth clients.

The wealth platform reported quarterly custodial inflows of $8.2 billion for the three months to June 30, up 11% from a year earlier, while net inflows of $3.2 billion combined with positive market movements of $6.7 billion lifted total FUA 20% over the year.

Managed account funds under management also reached a record $30.5 billion, rising 30% over the year after attracting $1.2 billion in quarterly net inflows.

Netwealth said investor caution following conflict in the Middle East, market volatility and proposed tax changes moderated inflows late in the quarter, while a small number of partial withdrawals by ultra-high-net-worth clients pushed outflows above historical levels.

"Outside of these accounts, flows dynamic remained more stable, and broadly consistent with historical averages" the company said.

"Despite the size of these partial withdrawals, the underlying client relationships remain on platform and continue to contribute meaningfully to total FUA."

The platform added 75 new financial intermediary relationships and 5601 accounts during the quarter, taking total accounts to 182,276.

Netwealth also expanded its managed account offering, adding 25 new models during the period with managed accounts now representing 22.5% of total FUA.

During the quarter, the company rolled out its wholesale Netwealth Private offering and launched its individual HIN solution in partnership with Finclear.

It also introduced Nova, a client-facing generative AI virtual assistant designed to provide advisers with faster access to product and process information while directing more complex enquires to specialist teams. Separately, Netwealth announced an expanded agreement with Morgan Stanely to provide a platform solution of ASX-listed and domestic investments.

Looking ahead, Netwealth reaffirmed guidance for FY27 net inflows of between $18 billion and $20 billion, representing growth of 17% to 30% on FY26, while forecasting an EBITDA margin of about 47% as it increases investment in growth initiatives.