The Netwealth Group Ltd (ASX: NWL) share price is catching the eye on Thursday.
In morning trade, the investment platform providerâs shares are up over 7% to a 52-week high of $14.78.
Why is the Netwealth share price racing higher?
Investors have been hitting the buy button this morning after Netwealth reported another record quarter.
According to the release, Netwealthâs funds under administration (FUA) increased by $4.4 billion for the fourth quarter of FY 2023 to a record $70.3 billion. This comprises FUA net inflows of $3.2 billion and positive market movements of $1.2 billion.
For the 12 months, the companyâs FUA increased by 26.3% or $14.6 billion.
Also increasing was Netwealthâs funds under management (FUM), which rose by $0.6 billion for the quarter to $16.0 billion. This was underpinned by net inflows of $0.4 billion.
It was the same story for its Managed Account balance, which lifted by $0.6 billion to $13.6 billion.
How does this compare to the industry?
Management highlights that Netwealth accounted for 66% of industry net funds flows for the 12 months to March 2023. This led to the company’s market share increasing by 1 percentage point to 6.7%.
This sandwiches the company between Macquarie Group Ltd (ASX: MQG) with its 12.4% market share and HUB24 Ltd (ASX: HUB) with its 6.1% share.
Looking ahead, management believes the last quarter has reinforced its confidence in both its âtransition pipeline and the potential for new business opportunities.â However, it has warned that the uncertain economic environment is having an impact on its operations. It said:
Despite strong inflows during the quarter, the prevailing economic uncertainty and its impact on investor sentiment have resulted in delays in committed transitions and new business activities for our existing clients.
Moreover, the current market conditions have continued to make it challenging to estimate timing of these transitions on a monthly or quarterly basis.
