prismmarketview
Oct 7, 4:43 PM
Wealthfront (
$WLTH ) reported
$532 million in total net deposits for September, with platform assets ending the month at
$100.5 billion, up 9% year over year. Funded clients reached 1.54 million, up 13%.
For contrast, the two sides of the platform are moving in different directions. Investment advisory assets rose 24% year over year to
$55.2 billion, while cash management assets slipped 4% to
$45.3 billion.
Rates were a factor. Wealthfront passed the 25 basis point Fed rate hike straight through to its Cash Account APY, helping deliver a third consecutive month of positive cash net deposits, partly offset by quarterly tax payments. Cross-product adoption reached just under 64%.
The mix shift shows up in revenue. Fiscal Q2 revenue rose 1% to
$91.9 million as advisory assets outgrew higher-fee cash management assets. The company ended the quarter with more than
$450 million in cash and no debt.
https://prismmarketview.com/wealthfront-adds-532-million-in-september-net-deposits-as-platform-assets-hold-above-100-billion/
