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Key Points
- Praemium's total funds under administration (FUA) reached $59.4 billion for the quarter ending September 30, 2024, marking a 33% increase from $44.6 billion a year ago.
- The company reported $139 million in net inflows for the quarter, a substantial recovery from the $414 million net outflow in the previous quarter, with notable contributions from Praemium Separately Managed Accounts (SMA) and OneVue.
- Following the announcement of these strong results, Praemium's share price surged nearly 8% on October 22, 2024, reflecting positive investor sentiment towards the company's performance.
Praemium Limited (ASX:PPS) has released its unaudited financial performance update for the quarter ending September 30, 2024, showcasing a robust growth trajectory in its funds under administration (FUA) and net inflows. The total FUA reached $59.4 billion, a remarkable 33% increase compared to $44.6 billion for the same period last year. This growth is attributed to several factors, including strong market performance and increased client activity across its various platforms.
Breaking down the FUA, Praemium's platform accounted for $29.0 billion, up 30% from $22.3 billion a year ago. The Praemium Separately Managed Accounts (SMA) also saw significant growth, with funds rising to $11.9 billion, a 22% increase from $9.8 billion in September 2023. Powerwrap, another key component of Praemium's offering, reported a modest increase to $12.9 billion, up 3% from $12.5 billion in the previous year. Notably, OneVue, which Praemium acquired in April 2024, showed promising results with $4.2 billion in funds under administration.
A key highlight of the quarterly report was the positive shift in net inflows, which totaled $139 million for the quarter. This marked a significant recovery from the previous quarter's net outflow of $414 million. Praemium's SMA contributed positively, recording quarterly net inflows of $165 million, while OneVue also reported inflows of $34 million, reversing its earlier trend of outflows. However, Powerwrap experienced net outflows of $60 million during the quarter, an improvement compared to the $437 million outflow in the previous quarter.
The company's cash management account holdings were also notable, with $703 million in the Praemium SMA (5.9% of FUA), $575 million in Powerwrap (4.5% of FUA), and $339 million in OneVue (8.1% of FUA). Additionally, the Scope+ non-custodial Portfolio Administration and Reporting Service reported $30.4 billion in assets under administration, reflecting a 36% increase from $22.3 billion in September 2023.
Market performance also played a significant role in bolstering the company's figures, with a positive market movement of $837 million, representing about 3.0% of the value of platform FUA at the end of the previous quarter.
Following the release of these results, Praemium's share price experienced a nearly 8% increase on October 22, 2024, signaling positive investor confidence in the company’s financial health and growth potential. As Praemium continues to expand its offerings and enhance client engagement, the outlook for future growth remains optimistic.
