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Introduction & Market Context
Praemium Ltd (ASX:PPS) presented its Q3 FY25 update on April 24, 2025, led by CEO Anthony Wamsteker and COO James Edmonds. The wealth management platform provider reported mixed results across its various offerings, with its total Funds Under Administration (FUA) reaching $30.1 billion, representing a slight decline of 0.3% compared to the previous quarter.
The company’s shares closed at $0.73, up 2.05% following the presentation, trading near the higher end of its 52-week range of $0.415-$0.893, suggesting investors responded positively to the company’s strategic progress despite the flat overall FUA growth.
Quarterly Performance Highlights
Praemium’s standout performer was its Spectrum platform, which saw explosive growth with FUA increasing by 615% to reach $513 million. This growth was accompanied by strong net inflows of $440 million, with management noting an "encouraging sales pipeline" for the product.
As shown in the following chart detailing platform FUA and net flows, the company’s overall platform business recorded net inflows of $364 million for the quarter, representing a modest decline of $7 million compared to the previous period:
The company’s traditional Separately Managed Account (SMA) platform saw its FUA decrease by 1% to $12.3 billion, while still generating positive net inflows of $120 million (excluding Spectrum). Meanwhile, Powerwrap experienced a 2% decline in FUA to $13.3 billion, with net outflows of $66 million, which included $88 million in gross outflows attributed to departed advisers.
Platform-by-Platform Analysis
OneVue, which Praemium is currently integrating, showed the most significant challenges with FUA declining by 5% to $4.0 billion and net outflows of $130 million. Management highlighted that completing the OneVue integration within budget and timeframe remains a strategic priority.
The company’s non-custodial services showed more stability, with Scope+ FUA increasing by 1% to $32.3 billion. Portfolio numbers were mixed, with Scope decreasing by 806 portfolios to 65,706, while Scope+ increased by 39 portfolios to 9,455. The company noted that portfolio numbers were affected by service rationalization for low-balance accounts at a major client.
The following chart illustrates the performance of Praemium’s non-custodial services:
Notably, Praemium added six new advice groups during the quarter, demonstrating continued ability to attract new business despite some client attrition in other segments.
Strategic Initiatives
Praemium outlined several strategic initiatives across multiple business areas. The presentation highlighted progress in product development, including the commencement of a mobile app upgrade and the development of Spectrum white labels, suggesting further expansion of its fastest-growing platform.
The company is also focusing on operational improvements, with initiatives aimed at enhancing service excellence. These include finalizing the operating model to support OneVue clients, resetting KPIs to support service excellence, and implementing initiatives to improve service standards.
As shown in the following overview of the company’s strategic progress across various business segments:
Technology and service innovation appear to be key priorities, with the company initiating an AI-driven Quality Assurance pilot and rolling out a new adviser onboarding process. In the superannuation segment, Praemium reported "significant improvements" with its current administration provider and completed a trustee review of administration options, while also expanding in-house administration capability.
Forward Outlook
While Praemium did not provide specific financial guidance, the presentation emphasized the company’s focus on completing the OneVue integration within budget and timeframe. Management also indicated they remain vigilant regarding inorganic growth opportunities but are prepared to take a disciplined approach.
The detailed tables provided in the presentation offer additional insights into the quarterly performance across platforms:
The explosive growth in Spectrum suggests this platform may become an increasingly important driver of Praemium’s future performance, potentially offsetting challenges in other segments. Meanwhile, the company’s strategic focus on service excellence and operational improvements indicates a recognition of the need to enhance client retention, particularly given the outflows experienced in the Powerwrap and OneVue platforms.
With its stock trading near the upper end of its 52-week range, investors appear to be focusing on Praemium’s growth potential and strategic initiatives rather than the flat overall FUA performance in the most recent quarter.
Full presentation:
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