News & Insights Praemium announces quarterly results
Key results to 31 March 2023
Praemium reports its funds and flows for the nine months to 31 March 2023. All figures are unaudited:
Total funds under administration (FUA) of $43.7 billion (30 June 2022: $40.5 billion, up 8%)
Platform $21.7 billion (30 June 2022: $19.5 billion, up 12%)
- Praemium Separately Managed Accounts (SMA) $9.4 billion (30 June 2022: $8.1 billion, up 16%)
- Powerwrap $12.4 billion (30 June 2022 $11.4 billion, up 9%)
- VMAAS non-custodial Portfolio Administration and Reporting Service $21.9 billion (30 June 2022: $21.0 billion, up 4%)
Financial year-to-date net inflows of $1,239 million (financial year to 31 March 2022: $2,632 million)
- Praemium SMA financial year to date net inflows $785 million (financial year to 31 March 2022: $1,713 million)
- Powerwrap financial year-to-date net inflows $454 million (financial year to 31 March 2022: $919 million)
Cash management account holdings
- Praemium SMA $641 million (6.9% of FUA)
- Powerwrap $750 million (6.1% of FUA)
Net platform inflows for the financial year to 31 March 2023 were augmented by $1,002 million in positive market movements, including positive $581 million for the quarter to 31 March 2023. It also compares favourably to $312 million in negative market movement for the financial year to 31 March 2022.
The market movement for the half-year to 31 March 2023 represents approximately 5.1% of the value of Platform FUA as at 30 June 2022.
- Rated the #1 platform for Decision Support Tools and Security and Data Integration in the Investment Trends Competitive Analysis and Platform Benchmarking Survey 2022 which was released during the quarter. Praemium made the largest gains of the top 3 platforms with its market-leading ESG reporting being a notable standout.
- 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.
- The continued growth of Praemium’s ESG offering saw Damian Cilmi, Head of Investment Managers and Governance, nominated for the Financial Standard ESG Power 50. The nomination recognises the most influential Australian professionals from an ASX-listed business who actively participate in initiatives designed to promote the important role of ESG and sustainability.
- During the quarter we continued to improve and refine popular features on the platform including;
- Enhancements to the digital account opening and approval process.
- Introducing compliance checks to ensure investors are downloading and accessing Product Disclosure Statements.
- Improvements to fee consent functionality pertaining to annual anniversary obligations.
- Further improvements to performance and liquidity reports.
- Additional information to help advisers understand the amount of cash available to trade and when withdrawals may override existing minimum trade size settings.
- Praemium’s latest client feedback initiative has been undertaken to inform the FY24 roadmap for functionality enhancements and new product features.
Praemium CEO Anthony Wamsteker made the following comments about the quarter:
“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 scheme continue to generate positive net flows.
The SMA is our cornerstone product and highest revenue-earning service. It achieved financial year-to-date net inflows of $0.8 billion, including $115 million for the quarter. This net funds flow represents 10% of the financial year’s opening FUA, an outstanding achievement.
Powerwrap has returned to a consistent positive flows contribution. It demonstrates that advisers value the enhancements and integration implemented over the course of the prior financial year”.
Financial YTD Platform flows ($m)
|% of gross||-26%||-8%||69%||43%|
|% of gross||36%||27%||21%|
*acquired 2 October 2020, nine months' data showing for March 2021 FYTD
|Qtly Platform flows||Mar 22||Jun 22||Sep 22||Dec 22||Mar 23|
|% of gross||60%||47%||56%||40%||25%|
|% of gross||9%||2%||28%||19%||16%|
|Australia Platform FUA||20,703||19,481||19,981||20,918||21,722|
This announcement is authorised by the Board of Praemium Limited. For further information contact Anthony Wamsteker, CEO, or David Coulter, CFO, Ph: 1800 571 881