Praemium Limited Reports 21% Growth in Funds Under Administration to $77.9 Billion with $1.9 Billion Net Flows in FY26

Robust FUA Growth Fueled by Platform Strength and Expansion of Non-Custodial Administration

Praemium’s FY26 performance highlights strong momentum across its core wealth management platform and portfolio administration sectors. Total funds under administration rose to $77.9 billion, marking a 21.1% increase from $64.3 billion as of 30 June 2025. This growth was supported by solid net inflows, favourable market conditions in the final quarter, and organic expansion across its diversified product offerings.

The FUA growth reflects Praemium’s increasing penetration in the high-net-worth advisory market, where demand for advanced portfolio solutions and alternative asset access has intensified. Platform FUA increased by 10.8% to $34.0 billion in FY26, while the non-custodial Scope+ division delivered exceptional growth, with FUA climbing 30.5% to $43.9 billion and portfolio numbers rising 33.7% to 12,793. This trend highlights a structural shift toward non-custodial administration preferences among advisers, positioning Praemium to capitalize on evolving market dynamics.

Net Flows Total $1.9 Billion Amid Declining Adviser Exit Outflows

Praemium recorded net inflows of $1.9 billion in FY26 despite ongoing challenges from adviser transition activity. Adviser exit-related outflows, including those linked to OneVue, amounted to $522 million for the year. Notably, these outflows decreased throughout FY26, signaling the completion of major platform migrations and resolution of legacy transition issues.

Q4 FY26 platform net flows reached $316 million, demonstrating sustained momentum entering the new fiscal year. When excluding adviser exits, underlying net flows were considerably stronger, indicating robust organic demand for Praemium’s offerings independent of transition-related pressures. With major platform migrations now finalized, the impact of legacy transition activity is expected to continue diminishing into FY27, providing clearer visibility on organic growth.

Scope+ Non-Custodial Administration Becomes Primary Growth Driver

Praemium’s non-custodial portfolio administration segment, Scope+, emerged as its fastest-growing division, with FUA reaching $43.9 billion—surpassing custodial platform FUA of $34.0 billion. This shift reflects changing adviser preferences favoring non-custodial structures for complex, high-net-worth client portfolios. The successful migration of Bell Potter Private Wealth’s business to Scope+, alongside onboarding new advice groups and the return of former clients, underscores the competitive strength of Praemium’s non-custodial solutions.

Market leadership in non-custodial administration was further solidified by multi-year enterprise agreement renewals with Morgan Stanley Wealth Management and JB Were. These renewals affirm Praemium’s critical role in administration, reporting, and operations within leading private wealth firms. The agreements provide a stable platform for growth and enable ongoing client engagement across Praemium’s broader solution set, facilitating cross-selling opportunities.

Technotia Integration Advances Technology Transformation and Cost Savings

The integration of Technotia is progressing as planned, with Praemium beginning to realize operational and financial benefits. The technology transformation program targets an annualized reduction of approximately $9 million in technology expenses, as previously disclosed in June 2026. This initiative represents a foundational upgrade from legacy systems to a modern, modular architecture designed to support scalability, faster development cycles, and reduced implementation risks.

The upgraded platform features streamlined cost structures and enhanced automation, enabling improved product development and a more scalable operating model. An independent technical review is underway to assess platform progress, expected productivity gains, and the assumptions behind revised incentive arrangements. The transformation is anticipated to boost operational efficiency, accelerate client onboarding, and enhance revenue and margin growth potential, ultimately improving profitability as the platform matures.

Expanded Investment Options and Cash Management Enhance Adviser Client Solutions

Praemium broadened its investment offerings by adding 330 new options across Spectrum, Powerwrap, and SMA platforms during FY26, supporting advisers in constructing flexible, outcome-driven portfolios. This expansion aligns with market trends favoring personalized portfolio construction over traditional managed funds, particularly within the high-net-worth segment where client sophistication and alternative asset demand are strongest.

Cash management holdings on the platform reached $1.812 billion, representing 5.3% of total platform FUA. Although a modest share, this cash allocation reflects adviser and client preferences for liquidity within Praemium’s ecosystem, indicating strong platform engagement and confidence. Bell Potter Private Wealth’s expansion into Spectrum and SMA solutions alongside Scope+ exemplifies growing adoption of multiple Praemium capabilities to meet complex wealth management needs.

Enterprise Client Renewals Bolster Revenue Stability and Cross-Selling Potential

During FY26, Praemium secured long-term enterprise agreement renewals with major private wealth firms including Morgan Stanley Wealth Management and JB Were. These renewals validate the company’s enterprise platform capabilities and underscore the strength and longevity of client partnerships. Executed on favorable terms, they reflect recognition of Praemium’s strategic value within leading private wealth management organizations.

These agreements provide revenue certainty and a foundation for future growth as clients deepen their engagement with Praemium’s ecosystem. Management anticipates leveraging these relationships to cross-sell additional products and services, driving revenue and margin expansion beyond net flows or assets under management growth.

Strategic Focus on High-Net-Worth Segment and Operational Efficiency

Praemium’s FY26 strategic priorities included targeted investments to support sustainable growth, cost management, and consistent operating performance. The company maintained strong net inflows across platform and portfolio administration divisions, realized synergies from Technotia integration, and completed the OneVue migration. Enhanced onboarding processes have accelerated revenue recognition from new clients, addressing critical commercial objectives amid significant client acquisition costs.

The company also advanced its Praemium superannuation offering to create a more competitive and scalable retirement income solution, signaling investment in this growth area. CEO Anthony Wamsteker highlighted that these initiatives position Praemium for consistent performance with upside potential as technology and product roadmaps are delivered, suggesting improved operating leverage as cost savings from Technotia integration materialize.

High-Net-Worth Adviser Demand Confirms Strategic Market Positioning

Praemium’s focus on the high-net-worth advisory market has been validated by steady adviser demand across its platform solutions in FY26. Adviser interest remained resilient, particularly within the targeted HNW segment, supporting strong flow performance across all Praemium platforms. This segment benefits from higher adviser margins, increased switching costs due to client complexity, and stronger pricing power, all conducive to profitable growth and client retention.

Growing demand for alternative assets and sophisticated portfolio structures is driving broader adoption of Praemium’s comprehensive product suite. CEO Wamsteker noted advisers increasingly seek solutions that accommodate complex client needs, including alternative assets and integrated administration services. This trend aligns with macro shifts in wealth management toward greater client sophistication, asset complexity, and preference for integrated platforms that reduce operational friction and enhance holistic advice delivery.

FY27 Outlook: Anticipated Technology Maturation and Enhanced Operating Leverage

Management projects a significantly improved outlook for FY27, driven by multiple factors expected to boost financial results and operating leverage. CEO Wamsteker indicated a "clear pathway to improved operating leverage into FY27," supported by sustained high-net-worth adviser engagement and ongoing delivery of technology and product enhancements. Revenue growth is expected to outpace cost increases as technology expenses decline and efficiency gains materialize.

The completion of major platform migrations and reduced adviser exit outflows will provide a clearer picture of Praemium’s organic growth in FY27. With Technotia integration delivering tangible cost savings and an independent technical review assessing platform progress and productivity benefits, investors will be attentive to potential updates on guidance and earnings expectations. The combination of enterprise client network effects, technology-driven operating leverage, and organic growth in the high-net-worth segment could generate substantial upside to financial performance.