Praemium Q4 FY25 slides reveal strong Spectrum growth offsetting Powerwrap outflows

Published 21/07/2025, 23:58
Praemium Q4 FY25 slides reveal strong Spectrum growth offsetting Powerwrap outflows

Introduction & Market Context

Praemium Ltd (ASX:PPS) released its Q4 FY25 update presentation on July 22, 2025, revealing continued growth in its platform business despite mixed flows across its various offerings. The company’s stock closed at $0.775 on July 21, up 1.31% ahead of the announcement, reflecting positive market sentiment toward the wealth management solutions provider.

The presentation, delivered by CEO Anthony Wamsteker and Interim CFO Simon Moore, highlighted Praemium’s strategic progress across product development, operations, service enhancements, and growth initiatives as the company continues its platform transition strategy.

Quarterly Performance Highlights

Praemium reported total platform Funds Under Administration (FUA) of $30.7 billion as of June 2025, representing a 2.2% increase from the previous quarter. This growth was primarily driven by the company’s Spectrum platform, which saw a remarkable 364% year-over-year increase to $2.4 billion.

The company’s performance across its platform offerings showed varying results. While Spectrum delivered strong net inflows of $339 million and SMA contributed $64 million in inflows, Powerwrap experienced net outflows of $251 million, which included $188 million from departed Escala advisers. OneVue’s FUA declined by 50% to $2.0 billion, consistent with the company’s previously announced transition strategy.

As shown in the following chart of quarterly platform FUA and flows:

In the non-custodial segment, Praemium continued to demonstrate steady growth. Scope+ FUA reached $33.6 billion, up 4% from March 2025, while Scope portfolios increased by 213 to 64,436 and Scope+ portfolios grew by 115 to 9,570. The company also added five new advice groups during the quarter.

The non-custodial business is poised for further expansion, with Bell Potter expected to add 2,200 portfolios and $6 billion in FUA, though these figures are not yet reflected in the current results.

As illustrated in the following chart of non-custodial FUA and portfolios:

Detailed quarterly platform flows and FUA data reveal the underlying trends across Praemium’s various offerings:

Strategic Initiatives

Praemium outlined significant progress across multiple strategic fronts during the quarter. The company’s product development initiatives include upgrading the Investor Portal Mobile App, enhancing functionality in the Adviser Portal, and improving API integrations.

On the operational front, Praemium continues to implement its productivity program, expand lean six sigma methodologies, and explore GenAI initiatives to drive efficiency. Service improvements include new initiatives to enhance service standards, an AI-driven Quality Assurance pilot, and a revamped adviser onboarding process.

The company also reported significant improvements with its current superannuation administration provider and new technology in user acceptance testing (UAT).

As detailed in the following strategic progress overview:

Growth initiatives remain a key focus, with the OneVue asset/FUA transition underway and major client partnerships established with Euroz (Spectrum), Bell Potter (Scope+), and Morgans (SMA). These partnerships are expected to drive future FUA growth across Praemium’s platform offerings.

Forward-Looking Statements

Praemium’s Q4 FY25 presentation suggests a continued focus on platform transition and growth, with particular emphasis on the rapidly expanding Spectrum platform. The company appears to be executing its previously announced strategy of reducing reliance on OneVue while growing its newer offerings.

The planned addition of Bell Potter’s portfolios and FUA to the non-custodial business represents a significant growth opportunity, potentially adding $6 billion in FUA once completed. This aligns with the company’s Q1 2025 earnings call, where management expressed confidence in capturing a larger market share.

While Powerwrap experienced outflows during the quarter, a significant portion was attributed to the departure of Escala advisers, suggesting that core business remains relatively stable. The company’s strategic partnerships with major financial institutions indicate potential for future growth across its platform offerings.

Praemium’s continued investment in product enhancements, operational efficiency, and service improvements positions the company to compete effectively in the wealth management platform market, though market volatility and competitive pressures remain key challenges to monitor in the coming quarters.

Full presentation:

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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