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Key Highlights
- Praemium (ASX:PPS) experiences a substantial 29% rise in funds under management.
- Net inflows more than doubled, reaching $371 million in the latest quarter.
- Praemium anticipates continued outflows in the short term due to adviser exits but remains optimistic for long-term growth.
Praemium (ASX:PPS), a leading provider of financial services and platform solutions, saw remarkable growth in its latest quarterly results. The company reported a significant increase in net inflows, reflecting the solid demand for its investment products. Over the past quarter, Praemium's total net inflows surged to $371 million, more than doubling compared to previous periods. The surge in inflows helped boost funds under management (FUM) by 29%, reaching an impressive $62.1 million.
The increase in net inflows was primarily driven by Praemium’s core product, the Praemium SMA platform, as well as its Powerwrap product. These platforms are highly valued by financial advisers, making them key pillars in Praemium’s strong financial performance. While the positive trend in net inflows highlighted the company’s growth, it’s important to note that Praemium also experienced some outflows during the period.
Despite experiencing significant outflows, Praemium remains optimistic about the future. The company stated that gross outflows are expected to continue in the near term, with estimates between $150 million to $200 million per quarter. These outflows are attributed to well-known adviser exits, a factor affecting many financial service providers in the current market environment.
Looking ahead, Praemium expressed confidence that the long-term growth potential of both its Praemium SMA and Powerwrap platforms will outweigh the temporary impact of these adviser transitions. Over time, the company believes these platforms will continue to grow strongly, leading to further increases in both net inflows and funds under management.
Praemium’s strong performance in the latest quarter highlights the resilience and potential for further expansion. With its robust suite of financial products and platforms, the company is well-positioned to maintain a positive trajectory. Despite near-term challenges, Praemium’s long-term growth prospects remain solid, offering confidence in the continued strength of its platform solutions.
For investors tracking Praemium, this quarter serves as a reminder of the company’s strong growth capabilities and its potential to thrive even amidst short-term challenges.
