Praemium reports 2-year net inflow high

In the three months to 31 December 2024, the firm reported $371 million in quarterly net inflows. This was up from net inflows of $139 million in the September quarter and net outflows of $414 million in the June quarter.

This is the highest volume of inflows seen since 2022’s September quarter when it recorded inflows of $659 million, having been hit in the intervening period by advisers transitioning away from Powerwrap, licensee switching and negative market movements.

Net platform inflows for the December quarter were supported by $784 million in positive market movements, Praemium stated.

Praemium’s Powerwrap, which in the past has seen continued outflows, returned to inflows of $78 million due to existing groups offsetting transitioning advisers. In comparison, Powerwrap previously suffered net outflows of $60 million and $437 million in the September and June quarters respectively.

The firm also reported SMA net inflows of $261 million, up from $165 million in the previous quarter. According to Anthony Wamsteker, Praemium CEO, this was the division’s highest result in nine quarters.

“The Praemium SMA scheme has traditionally been our cornerstone product and highest revenue margin service. It achieved quarterly net inflows of $261 million, our best result in nine quarters,” he commented.

Spectrum, the firm’s recently launched next generation investor directed portfolio service (IDPS), experienced its first net inflows of $69 million.

Meanwhile, OneVue saw net outflows of $37 million, marking a contrast from the $34 million in net inflows it recorded in the previous quarter. Praemium acquired OneVue from Iress in April 2024.

Wamsteker remarked: “The December quarter was noteworthy for the very well received launch of Spectrum, our next generation IDPS where we have a strong pipeline, and further improvement across most growth metrics from the previous quarter.

“OneVue added funds under administration (FUA) of $4.1 billion at acquisition and grew to $4.2 billion at 31 December 2024, including a $37 million net outflow for the quarter. We are on-track with synergies realisation, technology and product transition and transitional services.”

Overall, Praemium’s total FUA rose from $59.4 billion in the previous quarter to $62.1 billion in the December quarter, while its platform FUA increased from $29 billion to $30.2 billion.

Last month, the firm entered into a strategic partnership with alternative investments platform Stropro. This will help financial advisers to access structured products and integrate Stropro’s experience in the products and relationship with investment banks to the Praemium platform.

Stropro was launched in 2019 and describes itself as a provider of access to alternative investments via an investment platform.