Netwealth Group Ltd
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
A$22.40 | Mgxp | Qnbxbnj |
Competition Likely to Continue to Erode Netwealth's Fees
Business Strategy and Outlook
Netwealth provides investment administration software as a service, or SaaS, in Australia via its proprietary software platform, which includes investment portfolio administration, investment management tools, and investment and managed account services. The company charges for its software based on the value of funds under management on its platform, comprising over 95% of group revenue, in addition to providing Netwealth-branded investment products, which are managed by third-party investment managers. In contrast to the large and well-established vertically integrated Australian wealth management businesses, Netwealth does not own investment management or financial advisory businesses.