Praemium attracts record annual gross inflows for 2018 financial year

Praemium ASX PPS investment administration platform super record inflows key clients
Praemium's gross annual inflow was 50% higher for the 2018 financial year, compared to 2017.

Investment administration platform developer Praemium (ASX: PPS) has reported record annual gross inflows of A$3 billion, spurred by locking-in more key clients and renewals for existing clients during the past 12 months.

The record A$3 billion gross annual inflow for the 2018 financial year was 50% higher than the previous financial year.

Meanwhile, funds under administration (FUA) annual inflows soared 35% on the previous year to A$8.3 billion.

For the first half of the 2018 financial year, this brought in A$21.5 million in revenue to the company, which was up 25% on the corresponding period in 2017.

Underpinning this full year success was a positive June quarter which saw Praemium collar Morgan Stanley Wealth Management as a client, with Praemium to roll out its separately managed accounts (SMA) platform for the organisation this month.

Additionally, Praemium has edged into the lucrative United Arab Emirates market after securing regulatory approvals to sell its Smartfund range directly to the region.

UAE-based Mashreq Bank will promote Praemium’s products to the area.

During the quarter, the company also pinned down a five-year contract to provide its portfolio-based reporting solutions to CMC Markets Stockbroking.

JBWere also signed on for a further two years to continue accessing Praemium’s portfolio technology and wealth management solutions.

“The June quarter was a standout for key client wins to both our portfolio reporting software and SMA platforms,” Praemium chief executive officer Michael Ohanessian said.

“It is a strong validation of our market-leading capabilities in technology and product breadth, but also our continuing investment in product, and sales and marketing, which is clearly delivering results,” he noted.

The June quarter pulled in combined quarterly gross inflows of A$760 million, which Praemium claims was the third highest on record. Of that, A$566 million came from Australia, with the remaining A$194 million arising out of global markets.

In addition to the positive June period, Praemium secured broking and wealth management firm Hartleys as a new client this month. Hartleys will use Praemium’s reporting and administration software to manage its client portfolios.

Mr Ohanessian said with the key client wins to-date, he was “excited” about the upcoming financial year for Praemium.

“With significant industry forces driving change, particularly in Australia, but also across global markets, we are well-placed to benefit from the move to transparent and efficient adviser and investment solutions.”

“We also expect further upside from our global focus on superannuation and pension solutions,” Mr Ohanessian added.

About Praemium

Globally, Praemium administers more than 475,000 investor accounts which cover A$100 billion in assets.

The company provides investment platforms to Australian, the United Kingdom and a growing amount of international markets.

Praemium’s primary products include its SMA platform technology which enables wealth managers to simultaneously implement investment strategies across several client accounts, which can reduce administrative “burden”.

Also on offer is portfolio management and reporting, which enables Praemium’s clients to access all pertinent information relating to their own clients to stay on top of their needs.

The company also provides client relationship management and financial planning platforms.

These services allow clients to access performance analytics, asset allocation, tax and consolidated reporting capabilities.

Praemium’s share price had lifted more than 10% to A$0.95 by mid-afternoon, on the back of today’s news.

Lorna has more than 10 years' experience as a finance journalist and editor. She has written for numerous industry publications reporting on various sectors, including: resources, energy, construction, biotech, pharma, science and technology, agriculture, and chemicals. Specialising in resources, Lorna has also covered a myriad of small and large cap ASX and dual-listed stocks.