Praemium reports record quarter

It has been a record quarter for managed account platform provider Praemium, which has seen $1.66 billion of net platform inflows for the September 2021 quarter – a 37% increase compared to the previous quarter and 126% higher than the September 2020 quarter.

It was another strong performance from a platform as Netwealth and HUB24 also both reported record-breaking quarters for September.

Both the Australia and international platforms reported record results with net inflows of $1.25 billion for the Australian platform, which included $660 million for the Praemium separately managed account (SMA) scheme and $589 million for the Powerwrap scheme, a 123% increase compared to the reported inflows for the September 2020 quarter.

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There were net inflows of $407 million for the international platform, a 136% increase compared to the September 2020 quarter. 

Funds under administration (FUA) achieved a record high of $45.6 billion, an increase of 46% in the past 12 months.

Australia platform FUA reached $19.9 billion, up 33% compared to the prior year, which was made up of $7.7 billion in the Praemium SMA scheme and $12.2 billion in the Powerwrap scheme.

International platform FUA was $5.5 billion, up 59% compared to the prior year, as well as $20.2 billion in FUA for Praemium’s noncustodial portfolio administration and reporting service VMAAS, up 58% compared to the prior year.

Anthony Wamsteker, Praemium chief executive, said the firm was now in the due diligence phase with potential buyers of the international business.

“In relation to the proposed divestment of Praemium’s international business I can report that the formal sale process is continuing to plan,” Wamsteker said.

“However, it should be noted that there is no certainty around whether the sale process will result in a binding transaction. The board will update shareholders and the market in due course.

“We continue to see a solid pipeline of opportunities to support future growth and to deliver on our strategy to become one of Australia’s largest independent specialist platform providers.”

Wamsteker noted the recent IMAP census that reported the managed accounts industry reached the $100 billion funds under management (FUM) milestone.

“We expect this growth trend to continue, as advice firms seek better investment solutions for their clients and business efficiencies,” Wamsteker said.

“The wealth management industry in Australia continues to see strong growth trends [as noted in the IMAP census] industry forces such as the generational change of traditional advisers, new regulations and increased independent investment consultants have led to the professionalisation of advice and portfolios built to meet client objectives.”

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