Praemium’s FUA Climbs 18% as Technotia Merger Cuts $9M in Tech Costs

Robust Growth Across Platforms Amid Market Volatility

Praemium Limited (ASX:PPS) continued its upward trajectory in the third quarter of FY26, reporting an 18% year-on-year increase in total Funds Under Administration (FUA) to $73.7 billion. The platform segment alone grew 7% to $32.2 billion, buoyed by net inflows of $598 million despite a market revaluation loss of $923 million during the quarter.

Strong demand from high-net-worth (HNW) advisers underpinned this performance, with the Spectrum platform leading the charge. Spectrum recorded $502 million in net inflows, pushing its FUA to $4.0 billion. The platform’s growth is attributed to its in-house trading capabilities and focus on alternative assets, which appeal to sophisticated portfolio strategies. This momentum aligns with Praemium’s strategic emphasis on the HNW segment, highlighting the company’s ability to attract clients requiring complex investment structures.

Scope+ Expansion and Client Onboarding Strengthen Market Position

The non-custodial portfolio administration business, Scope+, saw its FUA surge 28% to $41.5 billion, with portfolios increasing by 27% to nearly 12,000. This growth was supported by the successful migration of Bell Potter Private Wealth clients onto the platform, a partnership initiated in mid-2025. The onboarding of three new advice groups, including returning clients, further reinforced demand for Praemium’s broader administration offerings.

Multi-year agreement renewals with key enterprise clients signal confidence in Praemium’s service continuity and revenue stability. This steady expansion of Scope+ complements the company’s platform growth, collectively bolstering its position as a leader in wealth management technology.

Technotia Merger Drives Technology Restructure and Cost Savings

Praemium’s integration of Technotia Laboratories, acquired earlier in FY26, is progressing well and reshaping the company’s technology function. The merger aims to accelerate automation, simplify workflows, and enhance user experience, positioning Praemium as a fintech leader in wealth management. The restructure of the technology division in Australia has been completed, with the planned closure of Armenian operations expected in Q4 FY26.

These moves are projected to reduce the annual technology salary cost base by approximately $9 million from FY27 onwards, although FY26 savings will be partially offset by one-off redundancy expenses. This cost discipline complements operational simplification efforts and supports improved operating leverage as platform scale continues to grow.

This technology focus was recognised in the 2025 Investment Trends Platform Competitive Analysis, where Praemium was rated number one across 19 sub-categories, including non-custodial assets and investment transaction capabilities.

Strategic Execution and Board Renewal

Praemium remains disciplined in managing costs while investing strategically to support long-term growth. Initiatives include enhancing onboarding processes, transforming superannuation offerings, and realising synergies from the OneVue platform transition completed earlier this year. This transition followed a period of adviser attrition but ultimately strengthened Praemium’s platform capabilities, as noted in the company’s OneVue shift completion and AI acquisition.

Board renewal was accelerated with the appointments of Katrina Efthim and Justin Lipton, replacing retiring director Claire Willette. These changes reflect a focus on governance and strategic oversight as Praemium navigates its growth and integration phases.

CEO Anthony Wamsteker highlighted that sustained adviser engagement and technology integration provide a clear pathway to improved financial and operating leverage into FY27, despite ongoing market uncertainties.