Australia's Netwealth plummets on lower annual net inflows forecast

Netwealth

03/04/2023 04:42

By Harshita Swaminathan
       April 3 (Reuters) - Shares of Netwealth Group  NWL.AX 
dived as much as 10.4% on Monday, making them the top loser in
Australia's benchmark stock index, after the Australian wealth
manager slashed its expectations of net fund inflows for the
fiscal year.
    Netwealth now expects net inflows into its funds under
administration (FUA) to be between A$9 billion ($6 billion) and
A$11 billion for the fiscal, compared with its previous forecast
of A$11 billion. 
    The firm attributed the lower forecast to market volatility
and negative investor sentiment, making it tougher to forecast
timings of transactions on a monthly or even quarterly basis. 
    Netwealth reported net inflows of A$1.7 billion into its FUA
over the March quarter, lower than the A$2.1 billion inflow in
the prior quarter. 
    "Even in the context of the difficult macro-economic
environment and the volatility in investment markets, and March
being the seasonally weakest quarter, NWL's net flow result is
disappointing," analysts at Ord Minnett wrote. 
    Shares of Netwealth fell as much as 10.4% to A$12.12, their
lowest level since Jan. 23, and also logged their worst intraday
percentage loss since Jan. 19. 

     
    ($1 = 1.4999 Australian dollars)
    

 (Reporting by Harshita Swaminathan; Editing by Sherry
Jacob-Phillips)
 ((Harshita.Swaminathan@thomsonreuters.com;))