Australian fund manager Netwealth hits over 15-mth high on robust inflows

Netwealth

13/07/2023 04:47

July 13 (Reuters) - Shares in Netwealth Group  NWL.AX 
hit a 15-month high on Thursday, after the Australian financial
services firm reported an 87.5% surge in net inflows to A$3.15
billion ($2.14 billion) in the fourth quarter from the previous
quarter. 
    Shares of the Melbourne-based wealth manager jumped 6% to
A$14.56 as of 0317 GMT, hitting their highest level since April
4, 2022. The stock was among the top gainers on the benchmark
ASX 200 index  .AXJO , which was last up 1.4%.   
    Netwealth's total funds under administration stood at
A$70.27 billion ($47.78 billion) at the end of the June quarter,
up from A$65.92 billion reported in the previous quarter.
    "NFF (net fund flows) was boosted by a large institutional
inflow of A$1.2 billion," analysts at UBS said in a note.
    "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."
    Total funds under management at the end of the June quarter
came in at A$15.96 billion, slightly above the previous
quarter's A$15.34 billion.     
    "NWL provided a solid 4Q23 update, achieving the mid-point
of its FY23 net flow guidance despite a challenging
macroeconomic environment," financial advisory firm Ord Minnett
wrote in a note. 
    "Looking through near-term challenges, we remain firm
believers of the structural change within the platforms sector,
of which NWL should be a major beneficiary."
    The company is scheduled to report its fiscal 2023 results
on Aug. 16. 
    

($1 = 1.4708 Australian dollars)

 (Reporting by Upasana Singh in Bengaluru; Editing by Rashmi
Aich)
 ((Upasana.Singh@thomsonreuters.com;))