Praemium net inflows sink by 53%

Praemium has reported $1.02 billion of net inflows for the half-year ending 31 December 2022, 53 per cent lower than in the same period a year earlier.

In an update to the ASX on Thursday, the firm also indicated that its funds under administration (FUA) had reached $42.7 billion, a 6 per cent increase compared to 30 June 2022.

“Investor sentiment has been very subdued in the wake of three successive previous quarters of negative markets and high volatility,” commented Praemium CEO Anthony Wamsteker.

“Nevertheless, the December quarter of the 2023 financial year has seen both Powerwrap and Praemium’s SMA scheme continue to generate positive net flows.”

Praemium SMA half-yearly net inflows were down by 50 per cent to $670 million, while Powerwrap half-year net inflows fell by 59 per cent to $346 million.

According to the firm, these net platform inflows were augmented by $421 million in positive market movements, comprising $580 million for the quarter to 31 December 2022 and negative $159 million for the quarter to 30 September 2022.

Compared to the previous half, platform FUA was up 7 per cent to $20.9 billion, which included an 11 per cent increase for Praemium’s separately managed accounts (SMA) to $9.0 billion.

“The SMA is our cornerstone product and highest revenue-earning service,” said Mr Wamsteker.

“It achieved rolling annual net inflows of $1.3 billion, including $225 million for the quarter. Its rolling annual net funds flow represents 16 per cent of the starting FUA, an outstanding achievement.”

The platform FUA figure also included a 5 per cent lift in funds for Powerwrap to $12.0 billion.

“Powerwrap has returned to a reasonably consistent positive flows contribution. It demonstrates advisers continue to value the enhancements and integration implemented over the course of the prior financial year,” Mr Wamsteker noted.

Meanwhile, the firm’s non-custodial portfolio administration and reporting service, VMAAS, experienced a 4 per cent increase in FUA versus the previous half, to $21.8 billion.

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.