Praemium’s Q4 FY25: 2.2% FUA Growth Driven by Spectrum and SMA

Strategic Momentum and Platform Growth

Praemium Limited’s Q4 FY25 update reveals steady progress in its strategic initiatives, with total funds under administration (FUA) across key platforms climbing 2.2% to $30.7 billion. This growth is largely propelled by the Spectrum platform, which saw an impressive 364% increase in FUA, and the Separately Managed Accounts (SMA) platform, which grew by 5%. These gains underscore Praemium’s ability to attract and retain assets in a competitive wealth management landscape.

Meanwhile, the Powerwrap platform posted a modest 1% increase, reflecting relative stability. However, the OneVue platform experienced a sharp 50% decline in FUA, a notable setback that offset some of the overall gains and contributed to net outflows within that segment.

Net Flows and Client Partnerships

Excluding OneVue, Praemium recorded net inflows of $152 million for the quarter, signaling positive momentum in client acquisition and retention. Spectrum’s net inflows of $339 million highlight a robust sales pipeline, while SMA contributed $64 million in net inflows. Conversely, Powerwrap faced net outflows of $251 million, partly due to adviser departures.

Praemium continues to strengthen its client base through major partnerships with Euroz, Bell Potter, and Morgans, which are expected to further bolster FUA and portfolio numbers. Notably, Bell Potter’s upcoming inclusion is anticipated to add approximately 2,200 portfolios and $6 billion in FUA, a significant boost to the non-custodial Scope+ platform.

Operational Enhancements and Technology Integration

Operationally, Praemium is advancing its technology infrastructure with upgrades to its Investor and Adviser Portals aimed at improving trading efficiency and client experience. The company is also expanding its in-house administration capabilities, moving away from reliance on external providers.

Innovations such as AI-driven quality assurance pilots and generative AI initiatives are delivering early productivity gains, while a revamped adviser onboarding process is streamlining operations. These efforts reflect Praemium’s commitment to leveraging technology to enhance service standards and operational resilience.

Outlook and Market Positioning

While the decline in OneVue’s FUA presents a challenge, Praemium’s diversified platform strategy and ongoing operational improvements position it well for future growth. The company’s focus on automation and client experience enhancements could translate into competitive advantages as the wealth management sector evolves.

Investors will be watching closely how Praemium manages the OneVue transition and capitalizes on its partnerships to sustain momentum in an increasingly dynamic market.