Netwealth (ASX: NWL) has delivered another standout quarter, reporting a record $12 billion in net flows for the financial year to date — a whopping 61% increase on the same period last year. The March quarter alone saw $3.5 billion in new money added, a new third-quarter record and a 29% jump on the prior corresponding period.
This performance cements Netwealth’s trajectory toward a record-breaking FY25, underscoring its growing dominance in the Australian wealth management space.
Big flows despite market wobbles
Total Funds Under Administration (FUA) hit $104.1 billion as of 31 March 2025, rising $2.5 billion over the quarter. That growth included the $3.5 billion of inflows, partly offset by $1 billion in negative market movements — a reminder of the recent volatility in financial markets. Still, Netwealth’s resilience is shining through.
The company’s diversified revenue streams and recurring income base are helping to buffer it from broader market shocks. Elevated trading volumes, strong cash account balances, and a well-spread customer base across high-net-worth, mass affluent, and emerging-affluent segments are also playing a role in this stability.
Funds Under Management and Managed Accounts climbing
Funds Under Management (FUM) added another $1 billion during the quarter, up 51% on last year. Total FUM now sits at $24.8 billion.
Managed Accounts continue to gain momentum too, bringing in $0.9 billion in net flows (42% up on PCP), reaching a closing balance of $21.4 billion.
Cash balances have remained elevated, with the Netwealth cash transaction account averaging 5.6% of custodial FUA in the quarter and ticking up to 5.8% by the end of March — a signal of both investor caution and Netwealth’s ability to generate income regardless of asset allocation shifts.
What’s driving the momentum?
The company credits strong client transitions from existing platforms, new business wins across different client segments, and robust adoption of its tech-enabled platform. April has continued the trend, with strong flows rolling in despite persistent market jitters.
If current momentum holds, Netwealth looks on track to finish FY25 well ahead of last year — and potentially set a new company record for annual net flows.
