Praemium SMA funds on platform up 70 per cent
Wealth management group Praemium has reported a 70 per cent jump in funds on its separately managed account (SMA) platform in the last year.
Since acquiring the business and taking on the role of responsible entity from BlackRock 12 months ago, Praemium had experienced renewed interest from existing SMA clients and grew a significant new business pipeline, according to the company's quarterly update.
The next phase of the SMA platform's expansion is the launch of Premium's retail superannuation offering — the Premium SuperSMA — which is expected to hit the market in February 2014.
"We are delighted with the growth of our Australian SMA platform during our first year as responsible entity," said chief executive officer Michael Ohanessian.
"The inherent advantages of running model portfolios are generating considerable interest within the wealth management industry and, as SMAs are the ideal vehicle for this purpose, we see considerable upside potential."
Praemium has also released its quarterly cash report, showing a $758,000 outflow for the quarter — a significant increase on the preceding three-month period.
"This change was from continued investment in the business to support medium-term growth, combined with the timing of annual supplier payments and seasonally lower receipts within the December quarter," the company stated.
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