Praemium sees inflow benefits from OneVue acquisition

Praemium’s late February acquisition of the OneVue Platform from Iress Limited has started to deliver, delivering a $34 million net inflow in the September quarter.

The company’s quarterly update to the Australian Securities Exchange (ASX) revealed that total funds under management (FUA) grew 33% over the same period last eyar to $59.4 billion with the OneVue acquisition accounting for $4.2 billion.

Commenting on the quarter, Prraemium chief executive, Anthony Wamsteker described it as extremely pleasing in circumstances where “every service, and virtually every growth metric has improved from the previous quarter”.

“The strong growth in FUA and portfolios on Scope and Scope+ highlights our market leading capability and represents a significant opportunity for Praemium,” he said.

He noted that Praemium SMA scheme had traditionally been the company’s cornerstone product and highest revenue margin service and had achieved quarterly net inflows of $165 million.

Wansteker said OneVue had grown to $4.2 billion in FUA at 30 September, including a $34 million inflow.

His commentary said that Powerwrap’s non-systemic outflows associated with transitioning advisers were largely offset by much improved net flows from a range of incumbent clients, as well as $40 million from a newly-added advisory group.

It said that Powerwrap’s gross outflows from transitioning advisers were approximately $1 billion for the most recent financial year and continued at that rate in the quarter to 30 September.

It noted that, over the long term, Praemium and Powerwrap clients had typically grown their businesses at strong rates and said “this should ameliorate the negative impact of the transitions which might arise from the known adviser exits”.