Record Total Australian FUA up 29% to $62.1 billion
Platform FUA up 32% to $30.2 billion
Spectrum inflows of $69 million
Key results to 31 December 2024
Praemium reports its funds and flows for the quarter to 31 December 2024. All figures are unaudited.
Total funds under administration (FUA) of $62.1 billion (31 December 2023: $48.3 billion, up 29%).
Praemium’s next generation IDPS Spectrum achieved quarterly gross and net inflows of $69 million, almost wholly in the month of December 2024, contributing FUA of $72 million for the quarter. This included $3 million of market growth.
» Platform $30.2 billion (31 December 2023: $22.9 billion, up 32%)
• Spectrum $72 million
• Separately Managed Accounts (SMA) $12.5 billion (31 December 2023: $10.3 billion, up 20%)
• Powerwrap $13.5 billion (31 December 2023 $12.5 billion, up 8%)
• OneVue $4.2 billion ($4.1 billion at 15 April 2024 acquisition, NIL at 31 December 2023)
» Quarterly net inflows of $371 million (quarter to 30 September 2024: $139 million)
• Spectrum net inflows of $69 million
• SMA net inflows $261 million (quarter to 30 September 2024: $165 million)
• Powerwrap net inflows $78 million (quarter to 30 September 2024: net outflow $60 million)
• OneVue net outflows $37 million (quarter to 30 September 2024: net inflow $34 million)
» Cash management account holdings
• SMA $691 million (5.5% of FUA)
• Powerwrap $472 million (3.5% of FUA)
• OneVue $339 million (8.1% FUA)
» Scope+ non-custodial Portfolio Administration and Reporting Service $31.9 billion (31 December 2023: $25.3 billion, up 26%)
Net platform inflows for the quarter to 31 December 2024 were augmented by $784 million in positive market movement. This represents approximately 2.7% of the value of Platform FUA at 30 September 2024.
Praemium CEO Anthony Wamsteker made the following comments about the quarter:
“The December quarter was noteworthy for the very well received launch of Spectrum, our next generation IDPS where we have a strong pipeline, and further improvement across most growth metrics from the previous quarter.
The Praemium SMA scheme has traditionally been our cornerstone product and highest revenue margin service. It achieved quarterly net inflows of $261 million, our best result in nine quarters. In the calendar year to 31 December 2024, net inflows of $829 million represented approximately 8% of opening FUA.
OneVue added FUA $4.1 billion at acquisition and grew to $4.2 billion at 31 December 2024, including a $37 million net outflow for the quarter. We are on-track with synergies realisation, technology and product transition and transitional services.
Powerwrap improved its gross and net flows from a range of existing clients. This more than offset nonsystemic outflows associated with transitioning advisers.
Powerwrap’s gross outflows from transitioning advisers were approximately $0.5 billion for the half-year to December 2024. Absent any further adviser movement, gross outflows from transitioning advisers are projected to continue at approximately $150 million to $200 million per quarter for at least another quarter, before abating. Over the long term Praemium and Powerwrap clients have typically grown their businesses at strong rates. This should more than offset, or at least ameliorate, the negative impact of the transitions which might arise from these known adviser exits.
Strong growth in FUA for Scope+ highlights our market leading capability. Portfolio numbers in Scope and Scope+ remain market leading, but were affected in the current quarter by service rationalisation for low balance accounts at a major client. 7 new client groups were added during the quarter, bringing the total to 12 for the financial year to December 2024”.
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About us:
About Praemium Limited
Praemium is the leading investment platform in Australia, catering to the emerging and established HNW market. Some of the world's leading private wealth managers, institutions and intermediaries choose Praemium technology to power their client portfolios, including 40% of the Barrons Top 100 Advisers 2023. Praemium offers access to a comprehensive suite of investment solutions covering custody and non-custody investments on a single platform.
Our platform offers a range of cutting-edge tools and services that streamline the advice process, deliver efficiencies for advice practices and enhances the client experience. For over 22 years, Praemium has remained committed to its goal of providing the best technology and product solutions to enable advisers to deliver great outcomes.
To learn more please visit: https://www.praemium.com/