Praemium’s quarterly flows up

Oksana Patron

18 October 2022

Praemium has reported that its quarterly net inflows grew 115%, from $306 million in the June quarter to $659 million at the end of September, however year on year the net inflows were down 47%.

In the announcement made to the Australian Securities Exchange (ASX), the firm said that net platform inflows for the September 2022 quarter were partially offset by $159 million in negative market movements on funds under advice (FUA) which equated to negative $1.5 billion for the quarter to 30 June, 2022.

Praemium said it represented less than 1% of the value of platform FUA as at 30 June and was broadly reflective of Australian equity market movement over the quarter.

Anthony Wamsteker, the company’s chief executive, described the first quarter of the 2023 financial year as a ‘welcome uplift in flows’ compared with the relatively weaker second half of the prior year.

He said that ‘pleasingly both Powerwrap and Praemium’s Separately Aanaged accounts (SMA) scheme’ were performing well.

SMA quarterly net inflows went up by 57% to $445 million quarter on quarter but were down 33% compared to quarter to September 2021.

Similarly, Powewrap quarterly net inflows, which were 64% down compared to the same time period a year before, grew 872% to $214 million in the September quarter 2022.

“The SMA is our cornerstone product and highest revenue earning services,” Wamsteker noted.

“It achieved rolling annual net inflows of $1.8 billion, including $445 million for the quarter. Its rolling annual net funds flow represents 23% of the starting FUA, an outstanding achievement.”

The CEO also stressed that Powerwrap had achieved its best flows result in three quarters which, according to him, showed that advisers embraced “the necessary enhancements and integration implemented over the course of the prior year”.

Total funds under administration (FUA) stood at $41.4 billion, which was 2% up compared to the June quarter. This included a 3% growth in platforms to $20 billion, a 4% growth in the SMA segment to $8.4 billion and a 2% growth in Powerwrap to $11.6 billion.