Australia's Netwealth hits 15-month high on higher FUA, inflows

Netwealth

13/07/2023 05:12

(Updates to add UBS comments)
    ** Shares of financial services co Netwealth Group Ltd
 NWL.AX  jump as much as 7.6% to A$14.780, their highest since
April 4, 2022 
    ** Co says funds under administration (FUA) for June-quarter
increased by A$4.4 bln to A$70.3 bln ($47.77 bln), with net
inflows of A$3.2 bln
    ** UBS says net fund flows (NFF) was boosted by large
institutional inflow of A$1.2 bln
        ** "Whilst clearly the flows result would have been weak
without this item, we anticipate lumpy flows to continue with
new client wins and client transitions, the quarterly timing of
which are both hard to predict" - UBS
  
    ** Co says FUA increased 26.3%, or A$14.6 bln, for the year
ended June 30
    ** "Looking through near-term challenges, we remain firm
believers of structural change within the platforms sector, of
which NWL should be a major beneficiary," says Ord Minnett
    ** As of last close, stock up 13.6% YTD

($1 = 1.4717 Australian dollars)

 (Reporting by Himanshi Akhand in Bengaluru)
 ((Himanshi.Akhand@thomsonreuters.com;))