Praemium platform posts record numbers on back of advice industry ‘forces’

The listed managed accounts platform reported net inflow of $1.66 billion, a 37 per cent increase on the previous quarter and 126 per cent higher than September 2020.

It also reported a record $45.6 billion of funds under management (FUA), a 46 per cent jump on the last year, which includes $19.9 billion for its Australian platform (up by 33 per cent) and $5.5 billion for its international platform (up by 59 per cent).

“We are delighted to report record momentum this quarter,” Praemium CEO Anthony Wamsteker said.

“This outstanding result also delivered record FUA levels, which surpassed $45 billion based on annual FUA growth of 46 per cent.

“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 partners.”

Mr Wamsteker also noted the “strong growth trends” in relation to financial services and advisers in September due to new regulations that came into effect this month, such as changes to design and distribution obligations (DDOs) which Praemium developed different solutions for.

Praemium also expanded its report library to support fee consent regulatory changes.

“… industry forces such as the generational change of traditional advisers, new regulations and increased independent investment consultants have led to the professionalism of advice and portfolios built to meet client objectives,” he said.

Mr Wamsteker reiterated that its intention to sell the international business is “continuing to plan” and the company is now in the due diligence phase with short-listed parties.

However, he stressed that there is “no certainty” on whether the sale will result in a binding transaction.

Neil Griffiths

Neil is the Deputy Editor of the wealth titles, including ifa and InvestorDaily.

Neil is also the host of the ifa show podcast.