NWL -9.19%, PPS -1.26%: both stocks released 2Q Funds Under Administration (FUA) updates today and followed the slide seen in peer Hub24 (HUB) after their update earlier in the week. Netwealth saw FUA inflows of $2.1b, with FUA rising 7.4% in the quarter, though inflows were slower than 2Q22. Praemium posted a similar slowdown on their end, seeing just $1b of net inflows across the 1st half. Retail investments have been hindered by low sentiment across the board, weighing on these companies ability to scale operations. The slowing growth weighed on shares today, though Netwealth said the margin on cash held on behalf of clients would increase to 1.35% from the start of the calendar year, up from 1.15-1.2% in the first half thanks to rising interest rates – a phenomenon that is likely to be seen across the peer group as well.
MM is long and bullish PPS
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