The Praemium Ltd (ASX: PPS) share price is one to watch after a December quarterly update from the investment platform group. Praemium shares have already shot up 2.83% in early trade and will be well worth keeping an eye on today.
Why is the Praemium share price on watch?
Praemium provided an update on its latest quarterly results as funds under administration (FUA) increased to $20.3 billion.
The group's International platform saw gross inflows of $325 million and net inflows of $228 million. The quarterly performance saw Praemium's platform FUA surpass $3 billion for the first time.
The International platform FUA rose 54% on the prior corresponding period (pcp) to $3.1 billion while Australian FUA climbed 21% on the prior corresponding period (pcp) to $7.1 billion.
Quarterly gross inflows came in at $0.84 billion in the third highest quarter on record. Total FUA of $20.3 billion comprises $10.1 billion in non-custody assets and $10.2 billion of custodial assets.
Praemium has increased its range of managed funds to over 500 with 1,700 domestic and international assets. The group's UK pensions business also had a strong quarter, jumping 79% compared to pcp to 1,403 schemes.
In terms of development milestones, the December quarter was a big one for the Aussie platform despite a soft Praemium share price performance. Praemium's VMA Administration Service (VMAAS) now exceeds $10 billion compared to just $0.3 billion 12 months ago. The group is continuing to build out its platform capabilities with greater access to a range of assets and ETFs.
It's worth keeping an eye on the Praemium share price today following the solid quarterly update.
How did the group's shares perform in 2019?
Despite the solid growth outlook from the group, 2019 was an underwhelming year for shareholders.
The Praemium share price slumped 22.73% lower throughout the year after a couple of key client losses.
One of the biggest was Australia and New Zealand Banking Group (ASX: ANZ) which made up 8% of Praemium's revenue when it declined to renew its service contract in April 2019.
However, the group has made a positive start to the new decade with the Praemium share price climbing 3.92% since 2 January, prior to this morning's update. Praemium shares have gained another 2.83% in early trade today and the Praemium share price is now sitting at $0.54 per share at the time of writing.
