The Netwealth Group Ltd (ASX: NWL) share price is on the move on Thursday morning.
At the time of writing, the investment platform provider's shares are up 5% to $16.81.
Why is the Netwealth share price charging higher?
Investors have been bidding the Netwealth share price higher today following the release of its quarterly update.
According to the release, Netwealth's Funds Under Administration (FUA) stood at $47.1 billion at the end of June. This was a 12.7% or $5.3 billion increase since the end of March and includes positive market movements of $2.2 billion. It also represents a 49.6% or $15.6 billion increase over the prior corresponding period.
This was driven largely by net inflows of $3.1 billion, which was double the net inflows recorded in the same period last year. This means that Netwealth continues to lead the industry for FUA net inflows in 2021.
As a result, at the end of March, the company's market share had increased to 4.6% from 3.6% a year earlier. This makes Netwealth the sixth largest and fastest growing platform provider by net fund flows in Australia.
FUM growth continues
Also growing strongly and giving the Netwealth share price a boost was its Funds Under Management (FUM). The release explains that the company's FUM increased $1.2 billion or 11.9% over the three months to $11.7 billion. This is up $4.5 billion or 61.4% over the same period last year.
Management advised that this was underpinned by further strong growth in managed accounts to 9,835, which is up 69.7% over the prior corresponding period.
The Netwealth share price has been a very strong performer over the last 12 months. Today's gain means its shares are now up an impressive 81% since this time last year. This has been driven by its strong FUA growth and the prospect of a higher cash rate in the not so distant future. The ultra low cash rate has been a drag on its margins over the last couple of years, so any increase would be welcome.
