Praemium targets 50% FUA growth on OneVue

iress OneVue praemium anthony wamsteker platforms

27 February 2024
| By Laura Dew |
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Technology platform Praemium expects to be able to grow funds under administration (FUA) on the OneVue platform by 50 per cent within 18 months following its acquisition.

Yesterday, it was announced that Praemium will acquire the OneVue platform from Iress, as Iress looks to focus its business on wealth management, superannuation and data and trading. 

The acquisition will boost Praemium’s funds under administration by $4 billion, expand its client base, increase market share and strengthen its position in the Australian market, it said.

On a results call for the six months to 31 December, CEO Anthony Wamsteker acknowledged it will be loss-making initially due to costs incurred but expects it to be profitable as it migrates onto the Praemium tech stack by full-year 2026.

“OneVue won’t be the last acquisition that we make. There are not many businesses that are exactly the same as what we do now and [OneVue] adds $4 billion in FUA and we expect to realise $3 million in tax synergies when we migrate it.

“We can manage it on our own tech stack which is what made it so attractive.

“There are opportunities from the client base that OneVue has already to grow that to $6 billion over the coming 18 months. Our determination is to do that, and Powerwrap has grown by well over 50 per cent since acquiring that business, so we have a track record there. 

“There are conversations occurring with existing clients of OneVue about them moving more of their assets onto the platform.”

However, while Praemium is keen for acquistion opportunities, Wamsteker acknowledged there is unlikely to be another firm that shares as many similarities as OneVue.

Beyond M&A activity, he highlighted five areas where the firm wants to grow: tracking enduring market trends, developing products that address evolving needs, creating unique offerings, delivering improvements that outshine existing alternatives, and growing and scaling the business.

Wamsteker said: “We do want to continue to grow and scale the business. We think we are smaller than we need to be.

“There continues to be a differentiation between the average retail client and the high-net-worth client, but there are some converging needs. 

“More and more people want a total wealth view, more and more they want super and non-super managed with the one adviser, and they want managed portfolios and individual assets. Those things are overlaps, and they are things that will continue to drive our development.”

 

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