Praemium FUA surpasses $43bn in March quarter

Praemium has reported an 8 per cent boost in its total funds under administration (FUA) from 30 June last year to $43.7 billion.

In its quarterly update released on Tuesday, the firm revealed its financial year to date net inflows reached $1.24 billion compared to $2.63 billion at the end of March last year.

“Investor sentiment has remained subdued in the wake of previous quarters of high market volatility. Nevertheless, the March quarter of the 2023 financial year has seen both Powerwrap and Praemium’s SMA (separately managed account) scheme continue to generate positive net flows,” said Praemium’s chief executive officer, Anthony Wamsteker.

Praemium’s SMA scheme saw a 16 per cent boost in FUA from June to $9.4 billion at the end of March, while Powerwrap added 9 per cent to $12.4 billion, taking the firm’s Australian platform FUA to $21.7 billion.

“The SMA is our cornerstone product and highest revenue earning service. It achieved financial year to date net inflows of $0.8 billion, including $115 million for the quarter. This net funds flow represents 10 per cent of the financial year’s opening FUA, an outstanding achievement,” said Mr Wamsteker.

“Powerwrap has returned to a consistent positive flows contribution. It demonstrates that advisers value the enhancements and integration implemented over the course of the prior financial year.”

During the first three months of calendar year 2023, Praemium entered into an agreement with Iress to collaborate on the design and creation of Xplan Affinity with a view to delivering efficiencies, enhancing the client experience, and decreasing the cost of providing financial advice.