Record inflows continue at Praemium in Q3

Praemium, the ASX-listed, Melbourne-based platform services provider that earlier this year saw its chief executive dismissed and then, in response to a shareholder backlash, reinstated, today posted record quarterly inflows, both globally and in its key home market.

The company’s share price rose on the news.

In a statement, the company said its international business reported inflows of £97m (US$127.9m, € 108.5m) for the September quarter, its third-highest on record “despite the seasonal holiday period in Europe”.

Globally inflows hit A$749m (£442m,  € 494.8m), bringing the company’s total funds under administration up to a record A$6.6bn, Praemium said in the statement. (See table, below; dollars are Australian.) 

The company said its “highest ever reported” inflows in its home market, of A$587m, included “particular growth from existing clients”.

Funds under administration in the company’s retail superannuation offering, known as the SuperSMA, reached A$716m, and now comprises 17% of the Australian SMA platform, consistent with the previous quarter, Praemium reported.

Key developments during the quarter included progress on plans to add  international securities to Praemium’s Australian SMA platform model portfolios, as part of a broader plan to expand Praemium’s platform offering.

“Several new tools designed to improve adviser efficiency”, such as the so-called “Report Publisher” which Praemium says is designed to automate the client reporting process, were also introduced.

Michael Ohanessian, the Praemium chief executive who returned to the company in May after having been ousted in February – as result of what one Australian newspaper referred to at the time as a shareholder “bunfight” – said the quarter had been “a standout for Praemium”.

He referred to the company’s efforts to invest in building “the foundations” of the business “in preparation” for additional growth, “particularly in technology, product, sales and marketing, and expanding our management depth”.

“This investment in growth will see us deepen engagement with our existing clients as well as expand the addressable market beyond the small but rapidly-growing SMA space,” Ohanessian, pictured above, added.

“We believe this investment will deliver sustainable and long-term returns to shareholders.”

Praemium was founded in 2001 in Australia by Arthur Naodoumidis, a former IT consultant, and listed on the ASX in May, 2006. In addition to Australia, it maintains offices in Jersey, Hong Kong and the UK, where it has been present since 2008.

A key part of the business are its separately-managed investment accounts; it says it currently has more than 300,000 active investor accounts, in addition to looking after more than 700 financial institution clients.

Last year it acquired Wensley Mackay Ltd, a UK SIPP provider.

ABOUT THE AUTHOR
Helen Burggraf
Helen Burggraf is the editor of International Investment. A US-trained journalist, she has worked in Rome, New York City and London, covering everything from the fashion and retailing industries to the global drinking water and water-treatment sector, private equity, and most recently, the international cross-border financial services/advice industry.

Read more from Helen Burggraf

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