Praemium Limited (ASX:PPS) Reports Record Growth in FUA
Record FUA Growth
Praemium Limited reported a significant rise in total funds under administration (FUA), reaching $62.1 billion as of December 31, 2024. This represents a 29% increase from $48.3 billion a year earlier. Platform FUA also experienced impressive growth, rising 32% to $30.2 billion.
Strong Inflows and Market Performance
During the quarter, Praemium’s next generation IDPS Spectrum achieved gross and net inflows of $69 million, contributing $72 million to FUA. Notably, the total quarterly net inflows for the company amounted to $371 million, an increase from $139 million in the previous quarter.
The Separately Managed Accounts (SMA) segment garnered $12.5 billion in FUA, up 20% from the previous year’s $10.3 billion. Powerwrap’s FUA grew 8% to $13.5 billion, also showing improved flows from existing clients.
CEO Commentary
CEO Anthony Wamsteker highlighted the quarter’s achievements, stating, “The December quarter was noteworthy for the very well received launch of Spectrum.” He noted the strong performance of the SMA scheme, which achieved its best net inflows in nine quarters, totalling $261 million. Wamsteker also mentioned ongoing positive market movements contributing $784 million to platform values.
Future Outlook
Praemium is currently focused on realising synergies from recent acquisitions, as well as continuing the transition process with Powerwrap. Although transitioning advisers may cause some temporary outflows, the company anticipates that long-term growth will exceed these impacts.
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Praemium. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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