The Netwealth Group Ltd (ASX: NWL) share price has risen by around 25% in the past week.
Considering its market capitalisation was already in the billions, that is a significant increase in a short amount of time.
On 14 October, the business released its quarterly business update and outlook for the three months to September 2021.
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Netwealth quarterly update
Netwealth said that funds under administration (FUA) at 30 September 2021 was $52 billion. That was an increase of $4.8 billion (a 10.2% increase) for the last quarter, including market movements of $0.8 billion. Year on year, the increase was $17.9 billion (an increase of 52.7%), including a positive market movement of $6 billion.
The FUA net inflows for the September quarter were $4 billion, which was 111% more than the prior corresponding period. Of the total FUA, net inflows from two clients contributed approximately $0.9 billion. The rest of the inflows were "well diversified".
Turning to funds under management (FUM), it reached $12.6 billion at 30 September 2021, which was a 7.7% increase (or $0.9 billion) for the quarter and an increase of 56.9% year on year ($4.6 billion in dollars).
FUM net inflows were $0.9 billion for the quarter, including $0.7 billion of managed account net inflows.
The managed account balance was $10.7 billion at 30 September 2021, an increase of 63.6% year on year.
The Netwealth share price has risen almost 20% since this announcement.
How fast is it growing compared to the competition?
Netwealth said it continued to lead the industry for FUA net inflows, as reported in the 'Plan for Life' quarter platform market update. It recorded the largest FUA net inflows of $9.8 billion for the 12 months to 30 June 2021.
At 30 June 2021, its market share increased to 4.9%. That was an increase of 1% over the prior 12 months.
It is the sixth-largest platform, behind IOOF Holdings Limited (ASX: IFL), Westpac Banking Corp (ASX: WBC) / BT, AMP Limited (ASX: AMP), Commonwealth Bank of Australia (ASX: CBA) / Colonial and Macquarie Group Ltd (ASX: MQG). It's also growing at a faster pace than Hub24 Ltd (ASX: HUB).
Outlook for Netwealth and its share price
The outlook may be factoring into investors thoughts about the Netwealth share price.
It said:
The ongoing structural changes within the financial services industry continue to support and increase Netwealth's addressable market and growth opportunities.
As a result of these changes our pipeline for new business remains very strong across all market segments.
The business upgraded its FUA net inflow guidance for FY22 from $10 billion to approximately $12.5 billion. That was due to the record net inflows from the last quarter and the growth that is in its "substantial" new business pipeline.
