By Alice Uribe
SYDNEY–Netwealth Group’s shares jumped after the company reported a rise in its funds under administration for the June quarter, amid strong inflows.
Shares in the Australian wealth-management platform company rose 6.1% to 14.58 Australian dollars (US$9.90) in morning trade, after earlier hitting a high of A$14.78. It is one of the strongest performers on the ASX 200 so far.
Netwealth said Thursday that its FUA rose 6.6% to A$70.27 billion in the June quarter, compared to the previous quarter. For the year to June 30, FUA are up 26%.
Still, Netwealth said that despite seeing significant growth and establishing new partnerships with financial advisers and licensees, as well as strong inflows, economic uncertainty prevailed.
“Its impact on investor sentiment has resulted in delays in committed transitions and new business activities for our existing clients,” said Netwealth.
“Moreover, the current market conditions have continued to make it challenging to estimate timing of these transitions on a monthly or quarterly basis.”
Netwealth shares are up 21% so far this year.
Write to Alice Uribe at [email protected]
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