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Why the Praemium Ltd share price stormed to a record high today

The Praemium Ltd (ASX: PPS) share price has continued its strong run on Wednesday and in late morning trade is up a solid 10% to an all-time high of 81.5 cents.

Incredibly, this means the fintech company’s shares have now more than doubled in value in just the last three months.

Why are its shares higher today?

This morning the provider of portfolio administration, investment platforms, and financial planning tools released its latest quarterly update. As you might have guessed from the positive share price reaction today, it was yet another positive one.

According to the release, Praemium recorded gross inflows of $764 million for the quarter ending December 31. This was the highest gross inflow on record and was driven by strong inflows both at home and internationally.

Management advised that international gross inflows were £124 million ($216 million) and Australian gross inflows came in at a hefty $548 million.

As a result of this and buoyant equity markets, funds under administration (FUA) have now surpassed $7.4 billion. This is a 37% increase on the $5.4 billion in FUA it reported in December of 2016.

Should you invest?

I have been very impressed at the way Praemium has grown its FUA, but I’m not surprised by it. After all, in my opinion Praemium has arguably the highest quality product portfolio in the industry.

Its products have been attracting countless money managers, such as Shaw and Partners, for some time and I expect recent product developments will further enhance its appeal. Ultimately, I believe this will support further FUA growth over the next 12 months and lead to above-average earnings growth in the future.

While its shares are by no means cheap, I do think they are worthy of the premium and would suggest investors consider them ahead of industry peers Hub24 Ltd (ASX: HUB) and Onevue Holdings Ltd (ASX: OVH).

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Onevue Holdings Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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