The Netwealth Group Ltd (ASX: NWL) share price is up more than 6% after announcing its September 2020 update.
Netwealth’s update
Netwealth announced that its funds under administration (FUA) at 30 September 2020 of $34 billion, an increase of $2.5 billion or an 8% increase in percentage terms. This included positive market movements of $0.6 billion.
FUA net inflows of $1.9 billion for the September quarter was an increase of $0.4 billion, a 25.4% increase for the quarter and an increase of $0.4 billion (29.1%) compared to the prior corresponding period.
Funds under management (FUM) at 30 September 2020 was $8.1 billion. FUM net inflows for the quarter was $0.8 billion, including managed account net inflows for the quarter of $0.7 billion. The managed account balance was $6.5 billion at 30 September 2020, an increase of $3.4 billion on the prior corresponding period.
The fintech business announced that two new Netwealth funds were launched on the platform in August, managed by Magellan Financial Group Ltd (ASX: MFG).
Netwealth reminded investors about its recent investment in Xeppo, a specialist fintech data solutions provider which will help Netwealth’s initiatives.
Summary
Another quarter strong quarter from the company – it’s impressive and I can see why the Netwealth share price is up today.
According to CommSec, Netwealth is valued at 64 times the estimated earnings for the 2022 financial year. This seems quite expensive. It’s a great business but there seem to be better value ASX growth shares like Pushpay Holdings Ltd (ASX: PPH).
