• Netwealth to pay $101 million in compensation to members impacted by First Guardian Master Fund collapse
• Compensation payments to be credited to members' super accounts by 30 January 2026
• Compensation to be recorded as an extraordinary expense in Netwealth's 1H26 accounts

Netwealth Group Limited (ASX:NWL) has agreed to pay compensation to members of the Netwealth Superannuation Master Fund (Fund) who have suffered a loss through the collapse of the First Guardian Master Fund (First Guardian). The total value of the compensation payments is estimated to be $101 million, and these will be credited to members' super accounts by 30 January 2026. The compensation will be recorded as an extraordinary expense in Netwealth's 1H26 accounts, with an impact on net profit after tax of approximately $71 million. Netwealth will fund the compensation through a mixture of cash and debt, and remains in a strong financial position with very high levels of recurring revenue, a strong EBITDA margin, and strong cash generation. Netwealth's decision to compensate members and conclude matters with ASIC is one of the many avenues Netwealth has investigated to support its members and to assist them in recovering some or all of their investment in First Guardian. ASIC has concluded its investigation into the Netwealth group, and NIL and NSS have agreed to a court enforceable undertaking with ASIC requiring the payment of the agreed compensation into members' accounts in the Fund. NSS has also agreed to an enforceable undertaking with APRA requiring an uplift of its investment governance processes, to be overseen by an independent expert.

Netwealth expects to base its FY26 dividend on underlying earnings (excluding this one-off compensation payment) and reaffirms its previous FY26 guidance for FUA net flows to not materially differ from FY25. FY26 costs associated with First Guardian and related activities are not expected to be material.