Praemium reports 'outstanding’ growth for managed accounts

Praemium has reported net inflows of $2.9 billion for the 2021-22 financial year, an increase of 92 per cent on the prior comparative period (pcp).

In an ASX announcement on Monday, the firm said it had experienced net inflows of $306 million during the June quarter, down 53 per cent from the pcp.

“Despite unsettled market conditions which have impacted all wealth management firms, Praemium delivered solid net inflows this quarter and strong annual net inflows,” commented Praemium CEO Anthony Wamsteker.

Total FUA of $40.5 billion was reported by Praemium, up 10 per cent on the pcp. Australia platform FUA lifted 6 per cent to $18.4 billion while the firm’s non-custodial portfolio administration and reporting service (VMAAS) rose 15 per cent to $21.0 billion.

“The Praemium Separately Managed Accounts (SMA) scheme is our cornerstone product and highest revenue earning service,” Mr Wamsteker said.

“The SMA added annual net inflows of $2.0 billion, and $284 million for the quarter. Its annual net funds flow represents 28.8 per cent of the starting FUA, an outstanding growth achievement.”

The firm noted that $306 million of net platform inflows in the June quarter were offset by $1.5 billion in negative market movements.

Praemium announced earlier this month that it had completed the £35 million ($61.1 million) sale of its international business to Morningstar and declared a fully franked special dividend of $0.05 per share equating to $25.6 million.

International FUA was $5.4 billion at the time of the sale, with annual flows of $1.2 billion unchanged on the previous year.

“The divestment of our international business allows us to focus on our strategy to become one of Australia’s largest independent specialist platform providers,” Mr Wamsteker said.

“We are fully committed to our advisers and their clients. We will grow these relations and our FUA by being focused on even better technology and service for the remainder of the year and on into 2023.”

Jon Bragg

Jon Bragg is a journalist for Momentum Media's Investor Daily, nestegg and ifa. He enjoys writing about a wide variety of financial topics and issues and exploring the many implications they have on all aspects of life.