reported lower than expected net inflows of around $790 million in April, impacted by Covid-related absenteeism, volatile market conditions, and investor sentiment relating to geopolitical events and interest rate speculations.
Following RBA’s rate increase of 25 basis points, Netwealth’s margin on cash is now around 85 basis points. The financial services provider said in the event that RBA and interbank rates normalise, the Netwealth margin is expected to be circa 1.2 per cent, a reduction from the previous rate of around 1.45 per cent, pre Covid-19.
Netwealth said it expects strong inflows for May and June, however the company downgraded its net inflow guidance to exceed $13 billion for FY22, against a prior target of more than $13.5 billion.
Shares in Netwealth (ASX:NWL)
are trading 1.1 per cent lower at $12.43.