The Netwealth Group Ltd (ASX: NWL) share price is on course to end the week in the red.
This is despite the tech sector charging higher on Thursday.
At the time of writing, the investment platform provider's shares are down 2.5% to $12.98.
Why is the Netwealth share price falling?
Investors have been selling down the Netwealth share price following the release of the company's third quarter update.
For the three months ended 31 March, Netwealth reported a very modest 1.6% or $0.9 billion increase in funds under administration (FUA) to $57.6 billion.
While this is a much slower growth rate than investors have become accustomed to, it is worth highlighting that it is still a relatively positive result given the tough trading conditions it faced during the period.
For example, Netwealth reported negative market movements of $1.7 billion during the period. Take this out of the equation and its quarterly growth would have been ~4.6%, which annualises to 18.4%.
Elsewhere, the company reported quarterly funds under management (FUM) inflows of $0.5 billion, bringing its FUM to $13.8 billion, and a $3 billion year on year lift in its Managed Account balance to $11.7 billion.
Market share growth continues
Another positive, which has failed to boost the Netwealth share price, was news that the company continues to grow its market share.
The release notes that Netwealth continues to lead the industry for FUA net inflows, recording net inflows of $13 billion over the 12 months to 31 December. This led to Netwealth's market share increase from 4.4% to 5.5% over the period.
This makes it the sixth largest provider based on market share. Though, it still trails fifth positioned Macquarie Group Ltd (ASX: MQG) by some distance. Macquarie currently has an 11.7% market share.
Outlook
Pleasingly, management appears positive on the company's outlook, noting that its "pipeline and win rate for new business remains very strong across all market segments."
In light of this, it remains confident the company will exceed its annual FUA inflows guidance of $13.5 billion. This is subject to the timing of client transitions and there being no deterioration in market conditions.
