Newly-listed platform provider Netwealth Group Limited has revealed the degree to which its growth has been underwritten by the rise and rise of managed accounts in its first half-year results lodged with the Australian Securities Exchange (ASX).
In what the firm described as a “strong half year” in the immediate wake of the initial public offering (IPO), the company announced a 59.3 per cent increase in net profit after tax to $14.1 million on the back of a 21 per cent increase in funds under administration (FUM) to $2.7 billion and in net inflows of $1.8 billion.
But key to the Netwealth result was its exposure to managed accounts with the company acknowledging in its results presentation that “managed accounts continue to be a significant driver of our FUM growth”.
The presentation showed that managed accounts net flows for the period were $562 million with a forecast that they will reach $655 million for the full year. It also revealed that managed fund flows had reached $131 million with a full-year forecast to reach $910 million.
Under the heading of summary and outlook the company said that the current net profit after tax forecast was three to five per cent ahead of prospectus and noted a “very high proportion of recurring revenue”, existing financial intermediaries that were very “stick” and “the managed account continues to be a key driver of growth”.