Netwealth’s FUA Climbs 23.6% to $125.6B with Record $1.8B Managed Account Flows

Robust Growth in Funds Under Administration

Netwealth Group Limited (ASX, NWL) has delivered a standout performance in the December 2025 quarter, reporting record total custodial funds under administration (FUA) inflows of $8.4 billion. This marks the second consecutive quarter of record inflows, underscoring sustained momentum in the company’s wealth management platform. Total FUA climbed to $125.6 billion, representing a 23.6% increase compared to the prior corresponding period.

The quarter’s net flows of $4.2 billion included a $0.4 billion outflow from two low revenue-generating institutional accounts, but excluding these, net flows reached a record $4.6 billion. Managed Account net flows also surged to a record $1.8 billion, up 61.4% year-on-year, driving total Managed Account funds under management (FUM) to $27.5 billion, a 32.3% increase.

Strategic Product Launches and Platform Enhancements

Netwealth is advancing its product suite with the imminent soft launch of its individual Holder Identification Number (HIN) offering, expected to go live in the second half of FY26. This initiative will allow advisers and stockbrokers to execute and report trades seamlessly for individual HIN clients, broadening the platform’s addressable market. Complementing this, the company successfully deployed Netwealth Private, targeting high net worth (HNW) and ultra-high net worth (UHNW) clients, either as a standalone solution or integrated with the individual HIN offering.

Further enhancing its technology edge, Netwealth introduced AI-powered research tools featuring investment summaries, advanced charting, and market insights, designed to support advisers and clients alike. The Unify solution continues to expand integration capabilities, streamlining adviser workflows through connections with CRM systems and other specialist providers.

Regulatory Resolution and Financial Outlook

On the regulatory front, Netwealth has agreed to pay $101 million in compensation to members affected by the collapse of the First Guardian Master Fund, following an agreement with ASIC. This compensation charge will be recognised as an extraordinary expense in the first half of FY26. Additionally, Netwealth has entered into an enforceable undertaking with APRA to enhance investment governance processes, overseen by an independent expert, signalling a commitment to stronger regulatory compliance and risk management.

Despite this one-off charge, Netwealth remains highly profitable with a strong EBITDA margin expected around 49% for FY26, excluding the First Guardian impact. The company anticipates FUA net flows for FY26 to be broadly consistent with FY25, supported by ongoing growth in managed accounts and new product offerings.

Looking Ahead

Netwealth’s half-year results will be announced on 18 February 2026, providing further clarity on the financial impact of the First Guardian compensation and the progress of its strategic initiatives. With a growing account base now exceeding 172,000 and total FUA per account rising to $729,000, the company is well positioned to capitalise on its technology-driven platform and expanding product suite in a competitive wealth management landscape.