This is why the Netwealth (ASX:NWL) share price just jumped 9% to a record high

The Netwealth Group Ltd (ASX:NWL) share price stormed to a new record high on Thursday after the release of its Q1 update…

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Netwealth Group Ltd (ASX: NWL) share price charged 9% higher to a record high of $17.42 on Thursday morning following the release of its first quarter update.

The investment platform provider's shares have dropped back a touch since then but are still up 5% to $16.72 at the time of writing.

How did Netwealth perform in the first quarter?

During the three months ended 30 September, Netwealth recorded an 8% or $2.5 billion increase in funds under administration (FUA). This was driven by net inflows of $1.9 billion and favourable market movements of $0.6 billion.

Netwealth's net inflow of $1.9 billion was an increase of $0.4 billion or 29.1% on the prior corresponding period.

Also increasing during the quarter was the company's funds under management (FUM). At the end of September, its FUM stood at $8.1 billion, up $0.8 billion for the quarter. This includes Managed Account net inflows of $0.7 billion.

This means the company's Managed Account balance has now reached $6.5 billion, up 109.7% on the prior corresponding period.

How does its growth compare to its rivals?

According to the release, the latest Strategic Insights platform market update shows that Netwealth is growing more than rivals such as HUB24 Ltd (ASX: HUB) and Praemium Ltd (ASX: PPS).

For the quarter ending 30 June 2020, Netwealth recorded the largest quarterly FUA net inflows of $1.5 billion. This was 40% higher than its nearest competitor.

It was the same story for its 12 month rolling net inflows. The company's FUA net inflows came in at $9.1 billion for the 12 months to 30 June. This means Netwealth had the highest 12-month net fund flows for the ninth consecutive quarter.

This has helped increase Netwealth's market share to 3.8%, up 1.1% for the year. Which makes the company the 7th largest platform provider in the market today.

No guidance was provided for either the remainder of the first half or FY 2021.

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Hub24 Ltd and Praemium Limited. The Motley Fool Australia owns shares of Netwealth. The Motley Fool Australia has recommended Hub24 Ltd and Praemium Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Gainers

A young man talks tech on his phone while looking at a laptop. A financial graph is superimposed across the image.
Share Gainers

Why Capricorn Metals, Insignia, Perseus Mining, and Qoria shares are storming higher

These shares are having a strong session on Tuesday. But why?

Read more »

A man clenches his fists in excitement as gold coins fall from the sky.
Share Gainers

Why Amaero, AMP, Block, and South32 shares are racing higher today

These shares are starting the week on a positive note. But why?

Read more »

Ten happy friends leaping in the air outdoors.
Share Gainers

Here are the top 10 ASX 200 shares today

It was another momentous session for ASX shares this Friday.

Read more »

Overjoyed man celebrating success with yes gesture after getting some good news on mobile.
Share Gainers

Why BHP, Catalyst Metals, Mesoblast, and Pilbara Minerals shares are shooting higher

These shares are ending the week with a bang. But why?

Read more »

Doctor doing a telemedicine using laptop at a medical clinic
Healthcare Shares

The Mesoblast share price just rocketed 38%! Here's why

ASX investors just sent the Mesoblast share price up 38%. But why?

Read more »

A businessman stacks building blocks.
Share Gainers

Here are the top 10 ASX 200 shares today

ASX shares hit a new record high today.

Read more »

A man sees some good news on his phone and gives a little cheer.
Share Gainers

Why Auckland Airport, Australian Ethical, Breville, and Clarity shares are charging higher

These shares are having a better day than most on Thursday. But why?

Read more »

A man sits on a bench atop a mountain with a laptop, making investments with a green ESG mind.
Share Gainers

Here are the top 10 ASX 200 shares today

Investors endured a day to forget this hump day.

Read more »