Powerwrap Outflows Persist Despite Praemium’s Overall FUA Growth
Praemium reports a 12% rise in total Australian funds under administration to $64.3 billion in Q4 FY2025, driven by strong inflows into its Spectrum platform and growth in Separately Managed Accounts. However, Powerwrap continues to face net outflows.
- Total Australian FUA up 12% to $64.3 billion
- Spectrum platform net inflows of $339 million
- Separately Managed Accounts grow 14% to $12.9 billion
- Powerwrap experiences $251 million net outflows
- OneVue assets partially transitioned to Praemium platforms
Strong Growth in Funds Under Administration
Praemium has reported a robust 12% increase in total Australian funds under administration (FUA) for the quarter ending 30 June 2025, reaching a record $64.3 billion. This growth was primarily driven by solid net inflows into its next-generation IDPS platform, Spectrum, alongside continued expansion in Separately Managed Accounts (SMA) and Scope+ services.
The Spectrum platform, a relatively recent addition to Praemium’s suite, attracted net inflows of $339 million during the quarter, pushing its FUA to $2.38 billion. This momentum was bolstered by the strategic transition of $1.5 billion in assets from OneVue, reflecting Praemium’s ongoing integration efforts following its acquisition.
Mixed Platform Performance and Asset Transitions
While Spectrum and SMA posted encouraging inflows, SMA grew 14% to $12.9 billion with $64 million in net inflows, Powerwrap continued to experience challenges, recording net outflows of $251 million for the quarter. This marks a continuation of adviser transitions away from Powerwrap, although the pace of outflows has slowed compared to previous periods.
OneVue’s FUA declined sharply by 51% to $2.0 billion, primarily due to the transfer of assets to Praemium’s growth platforms, including Spectrum and SMA. Praemium highlighted that nearly half of OneVue’s assets have now migrated to its proprietary technology and products, signaling progress in consolidating its platform offerings.
Market Movements and Future Outlook
Positive market movements contributed approximately $708 million to the quarter’s FUA growth, representing about 2.3% of the platform’s value. Praemium’s CEO, Anthony Wamsteker, expressed confidence in the company’s growth trajectory, emphasizing the strong sales pipeline for Spectrum and the strategic importance of closing product gaps to unlock the full potential of their technology.
Despite the headwinds from adviser transitions impacting net flows, Praemium remains optimistic that gross inflows will increase over time and that net inflows will improve as outflows normalize closer to market averages. The company’s focus on integrating OneVue assets and expanding its non-custodial services like Scope+ appears to be paying dividends in maintaining a healthy sales pipeline.
Bottom Line?
Praemium’s platform consolidation and Spectrum’s growth set the stage for a pivotal year ahead, but Powerwrap outflows warrant close watch.
Questions in the middle?
- Will Powerwrap’s adviser outflows continue to slow or reverse in coming quarters?
- How quickly can Praemium complete the remaining OneVue asset transitions?
- Can Spectrum sustain its strong inflow momentum to offset other platform challenges?
