Praemium Posts 4% FUA Growth with $371m Net Inflows in Q2 FY25
Praemium Limited reports a solid Q2 FY25 performance, with Funds Under Administration rising 4% to $30.2 billion and net inflows surging to $371 million, driven by strong momentum in its SMA and Powerwrap platforms.
- Funds Under Administration (FUA) increased 4% to $30.2 billion
- Net inflows reached $371 million, up $232 million from previous quarter
- Strong growth in SMA platform with $261 million net inflows
- Powerwrap platform net inflows improved by $138 million despite adviser departures
- OneVue integration progressing as planned, though experiencing net outflows
Strong FUA Growth Amid Operational Transformation
Praemium Limited has delivered a robust update for Q2 FY25, reporting a 4% increase in Funds Under Administration (FUA) to $30.2 billion. This growth reflects the company’s ongoing strategic focus on operational transformation and client service enhancements, including improved adviser onboarding and enhanced superannuation reporting capabilities.
The company’s diversified platform strategy continues to pay dividends, with the Separately Managed Accounts (SMA) platform posting net inflows of $261 million, up $96 million from the prior quarter. Powerwrap also demonstrated resilience, recording $78 million in net inflows, a $138 million improvement despite the challenges posed by adviser departures.
Spectrum and OneVue: Mixed Momentum
Praemium’s Spectrum platform, launched recently, added $72 million in FUA and shows a strong pipeline, including anticipated client additions from Euroz Hartley in coming quarters. This platform is positioned as a preeminent non-custodial solution, emphasizing security, data integration, and decision tools, which aligns with Praemium’s ambition to support a broad range of investment strategies.
Meanwhile, the OneVue platform integration is progressing according to plan but continues to experience net outflows, with $37 million recorded in the quarter. This highlights the ongoing challenge of assimilating acquired businesses while maintaining client retention and growth momentum.
Operational Enhancements and Client Experience
Praemium is advancing its operational transformation with service enhancements such as improved adviser onboarding processes and an annual customer experience survey nearing completion. These initiatives aim to bolster client satisfaction and retention, critical factors in sustaining long-term growth in a competitive investment platform market.
Additionally, the company has implemented pricing changes for SMA and superannuation products effective April 2024, which may influence future inflows and profitability. Enhanced reporting and analytics for superannuation clients further demonstrate Praemium’s commitment to delivering value-added services.
Looking Ahead
With a total FUA of $62.1 billion across platforms and non-custodial services, Praemium’s diversified portfolio and strategic initiatives position it well for continued growth. However, the integration of OneVue and the impact of pricing adjustments will be key areas to monitor in upcoming quarters.
Bottom Line?
Praemium’s Q2 momentum underscores its growth potential, but integration and pricing impacts warrant close investor attention.
Questions in the middle?
- How will the OneVue integration affect Praemium’s client retention and future inflows?
- What impact will the recent SMA and superannuation pricing changes have on net inflows and profitability?
- Can Praemium sustain its strong inflow momentum amid competitive pressures and operational transformation?
