Netwealth Group Limited Shares Surge After Record Q1 Flows

Highlights:

• Netwealth Group Limited (ASX: NWL) reported record first-quarter net inflows of $4.1 billion, taking total funds under administration to $120.8 billion, up 26.6% year-on-year.
• The company’s managed accounts achieved strong momentum, posting $1.6 billion in net inflows, while non-custodial FUA surpassed $1 billion for the first time.
• Netwealth shares surged 5.15% to $32.46 at the time of writing, with UBS maintaining a neutral rating and a $33.50 price target, citing the stock as “relatively oversold” versus rival Hub24.

Investment platform Netwealth Group Limited (ASX: NWL) was among the top gainers on Friday after reporting record first-quarter net flows. At the time of writing, Netwealth’s shares were trading higher, reflecting strong investor optimism following its robust business update.

Strong First-Quarter Growth

Netwealth reported total funds under administration (FUA) of approximately $120.8 billion for the quarter, marking a 26.6% year-on-year rise. The company achieved record net inflows of $4.1 billion, supported by favourable market movements that contributed an additional $3.9 billion. Excluding pension payments, total net inflows stood at around $4.4 billion.

Managed accounts were a standout performer, recording $1.6 billion in net inflows—an increase of nearly 49.4% from the same quarter last year. The platform also surpassed a key milestone, with non-custodial funds under administration exceeding $1 billion for the first time.

Market Reaction and Analyst Outlook

Netwealth’s shares climbed 5.15% to $32.46 at 11:58 am AEDT, at the time of writing, and closed the session 0.8% higher. Over the past 12 months, the stock has gained 19.51%, underscoring strong long-term investor confidence. UBS analyst Shreyas Patel noted that while Netwealth’s custodial FUA of $119.8 billion came in “slightly softer than expected,” its adviser productivity metrics remained robust, with account growth of 13.7% year-on-year. UBS kept its “neutral” rating and a price target of $33.50, noting that Netwealth’s shares have lagged behind rival Hub24 by roughly 10% since the FY25 results, suggesting the stock may now be trading below its fair value.

Strategic Response and Future Outlook

Netwealth addressed investor concerns regarding its exposure to the collapsed First Guardian managed investment scheme, stating it was a “case of fraud” and that the company has fully complied with regulatory obligations. It reaffirmed its FY26 guidance and confirmed cooperation with regulators to support affected members. Looking ahead, sustained fund inflows and adviser network expansion will be key to maintaining growth momentum.

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