Netwealth Group Ltd Expands Morgan Stanley Deal and Eyes FUA Doubling
Netwealth expands Morgan Stanley relationship and outlines its FUA growth ambition
Netwealth Group (ASX: NWL) has entered an agreement to expand its existing relationship with Morgan Stanley Wealth Management Australia, providing a platform solution for ASX-listed equities and domestic investments, while detailing its medium-term growth outlook.
The general announcement, dated 7 July 2026, pairs a major client win with a preliminary trading update and reaffirmed guidance.
Netwealth flagged preliminary FY26 funds under administration (FUA) net flows of $15.4 billion, expected FY27 net flows of $18B–$20B (an increase of 17%–30%), and an ambition to double FUA over the next four years. The company described the deal as the first major client win from its multi-year investment in the stockbroking and private wealth segment.
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Morgan Stanley agreement: what has been secured
The agreement expands Netwealth’s existing relationship with Morgan Stanley’s wealth business in Australia. Entered via Netwealth Investments Limited, it provides a “platform solution for ASX listed and domestic investments.” This is an expansion of an established relationship, not a first-time engagement.
Under the arrangement, a subset of Morgan Stanley’s clients will have the option to transition their assets from Morgan Stanley’s legacy domestic platform to the Netwealth platform. Morgan Stanley’s financial advisers will retain and manage client relationships. The Netwealth platform will sit alongside the firm’s proprietary global Private Wealth Management platform, rather than replacing it.
Morgan Stanley Wealth Management manages more than $40 billion in assets under management in Australia. The tailored and streamlined offering includes:
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A single technology, execution and administrative platform solution
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Access to a curated list of domestic investments, including ASX-listed securities, managed accounts, managed funds, cash and term deposits
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Consolidated portfolio, performance and tax reporting
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A branded mobile, web and reporting experience for advisers and clients
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Integrated iHIN administration and flexible execution
Lindsay Coates, Executive General Manager – Private Wealth and Private Banking
“The expanded capability of the Netwealth platform supports a wider range of advice and private wealth models whilst maintaining strong governance and operational discipline. This agreement demonstrates the strength of our technology, people, and service model, and underscores the relevance of the Netwealth platform to an attractive and growing segment of the advice market. We look forward to building a long-term, valued relationship with Morgan Stanley’s wealth business in Australia.”
What iHIN and platform expansion mean for investors
A wealth management platform is the technology backbone that allows financial advisers to invest, administer, and report on client portfolios in one place. It consolidates holdings, execution, and tax reporting, reducing the administrative burden on advisers and their clients.
Netwealth stated that the integration of sponsored iHIN functionality was “a key component of the platform capability assessed by Morgan Stanley,” alongside its broader private wealth offering, service model, and governance framework.
The company described its expansion into the stockbroking and private wealth market as an addressable opportunity of approximately $600 billion in FUA. The Morgan Stanley agreement is positioned as evidence of that strategy translating into new client wins and incremental FUA net flows.
Preliminary FY26 result and reaffirmed guidance
Netwealth stated that FY26 FUA net flows are preliminary and expected to be $15.4 billion. Q4 net flows were modestly impacted by the recent Middle East conflict, associated market volatility, and recently proposed tax changes, which resulted in a softening of net flows in the latter half of the quarter. The company believes this impact is temporary.
Netwealth reaffirmed its FY26 guidance for an EBITDA margin of approximately 49% (excluding the impact of First Guardian and Reviewing Investment Standards and Excellence expenses), investment in capitalised software of approximately $12M, and an FY26 dividend to be based on underlying earnings.
| Metric | FY26 (Preliminary/Guidance) | FY27 Guidance | Change | Notes |
|---|---|---|---|---|
| FUA net flows | $15.4B | $18B–$20B | +17%–30% | Reflects underlying momentum and new growth initiatives |
| EBITDA margin | ~49% | ~47% | Step-down | Reflects planned step-up in growth investment |
| Capitalised software | ~$12M | ~$17M | Increase | High-ROI growth focus |
FY27 outlook and the ambition to double FUA
For FY27, Netwealth currently anticipates FUA net flows of $18B–$20B, an EBITDA margin of approximately 47%, and capitalised software investment of approximately $17M. These figures are subject to normal market and trading conditions and assume no material adverse changes in market sentiment, economic conditions, or the regulatory environment.
The expected step-down in FY27 EBITDA margin from approximately 49% to approximately 47% reflects a planned step-up in growth-focused initiatives, rather than any deterioration in profitability.
Over the past four years, Netwealth has more than doubled FUA. The company sees a pathway to doubling FUA again over the next four years, subject to market performance. That ambition is underpinned by:
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FUA net flows from underlying momentum in the business and planned growth initiatives
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An expectation that annual FUA net flows grow from the FY27 guidance provided
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Operating leverage that supports EBITDA margin expansion trending towards 50% as growth initiatives deliver scale benefits
Netwealth’s planned investment is focused principally on product and technology (including platform capability), as well as service delivery, and sales and marketing.
Matt Heine, CEO and Managing Director
“We see a significant opportunity to continue to grow. We will continue to invest in a disciplined manner to capture these opportunities, supported by a clear pipeline of initiatives with attractive returns. We remain focused on balancing growth and profitability, maintaining our financial discipline as we scale, and are excited by what the future holds.”
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Key dates for investors
Netwealth arranged an investor call for today, with the following dates flagged for the market:
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Investor call today at 9:30am AEST (7 July 2026)
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Q4 trading update: Thursday 16 July 2026
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FY26 full-year results: Wednesday 26 August 2026
The Q4 trading update is scheduled for 16 July 2026.
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