The share price of Netwealth Group Ltd (ASX: NWL) will be on watch today after revealing it had a record year in FY19.
Netwealth was founded in 1999, it’s a financial services technology company that helps financial planners manage client money is a user-friendly way whilst also reporting and charging for services. The founding Haine family still own more than half of the company.
Netwealth’s Record FY19
Netwealth reported that it had funds under administration (FUA) of $23.3 billion at 30 June 2019 which represents an increase of 10.8% (or $2.3 billion) for the June quarter and a 29.9% increase (or $5.4 billion) for FY19.
FUA net inflows in the June 2019 quarter was $1.5 billion, meaning market growth was responsible for the other $0.8 billion increase.
The company also revealed that in the latest March 2019 Strategic Insights, it achieved the highest platform flows of the quarter of $0.9 billion and for the 12 months ended 31 March 2019 of $4.3 billion. It also increased its market share by 0.2% to 2.5%.
Another pleasing update for the company was that funds under management (FUM), including managed accounts, reached $3.9 billion at 30 June 2019, an increase of 38.7% for the year, representing $1.1 billion.
Managed accounts were $2.8 billion at the end of FY19 – a 50.4% increase, or $0.9 billion. For the June 2019 quarter, managed account net inflows were $0.3 billion and positive market movements came to $0.1 billion.
Other Insights
Netwealth shared a number of other developments that have happened.
One of them being that Challenger Ltd (ASX: CGF) annuities have been launched on the Netwealth platform in June 2019 with the ability to apply for, administer and report on annuities with the option to consolidate with other platform accounts.
The company said that the fee paying FUA % remained at 61% at the end of the June 2019 quarter and Netwealth is confident about continued FUA growth and it has a “strong pipeline of new business including new clients in the process of being transitioned during FY20 and following years.”
Is Netwealth A Buy?
Netwealth is priced for a lot of growth, which it may well capture with advisers and investors looking to find alternative places away from the big banks and AMP Limited (ASX: AMP) after the Royal Commission.
It’s priced too highly for me to think it’s good value for my portfolio with a very high p/e ratio
, which is why I would much rather invest in the growth shares in the free report below instead.
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