Netwealth’s December quarter ended Q2 FY2021 update was announced yesterday, and the stock surged. The update showed a growth of $4.8 billion in investor funds. This made Netwealth shares the second best performer on the ASX 200 index.
FUMs grew to $38.8 billion as of 30th December 2020 – a 14% quarterly growth. The net inflows during the quarter was $2.6 billion – 3.7% growth over the Q1 FY2021. This takes the net inflows for 2020 to $9.2 billion, growing 36% over the previous year.
Netwealth’s performance has been exceptional throughout the pandemic. Netwealth shares have returned 121% over the past 1 year. They are the fastest growing financial planning platform in the market. Their funds under management have recorded consistent growth over the past 10 quarters. Netwealth’s managed account balance showed high growth as well. Its balance is now $7.6 billion – representing a growth of 74% compared to the previous corresponding period.
Netwealth has begun FY2021 impressively and we expect it to continue performing well. New business pipeline is strong for the company. The guidance provided by Netwealth shows Funds Under Management net inflows to in the range of $8.5 billion – $9 billion for FY2021.
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