Praemium offers a managed accounts platform that supports financial advisers, investment managers, institutions, accountants and product providers to administer their investments across more than 500,000 accounts.
Let’s take a closer look at today’s results.
Record breaking inflows boost the Praemium share price
The Praemium share price took off after the company announced $1.1 billion of inflows for the quarter ended December 2020. Compared to the December 2019 quarter, this is a whopping gain of 128%.
Praemium’s funds under administration (FUA) increased 10% during the quarter to reach $34.3 billion. FUA in Australia hit $16.4 billion, a 10% rise, while international FUA shot up 13% hitting $3.9 billion.
For the third year in a row, the International Adviser Awards in London awarded Praemium the winner of Best International Platform.
Strategic enhancements and company expansions
During the quarter, Praemium progressed a number of initiatives to enhance its Australian and International platforms as well as the company’s recently acquired Powerwrap platform.
These enhancements include launching Qualis Capital, expanding API functionality, launching margin lending for international SMAs (separately managed accounts) and growing the company’s reporting capabilities.
Some insights from the CEO
Commenting on Praemium’s impressive quarterly performance, CEO Michael Ohanessian had this to say:
We have ended 2020 on a high. Record inflows across the business have lifted us to over $34 billion in FUA, helped along by buoyant market conditions. A 69% year-on-year increase in global FUA is a fantastic result in a year of tremendous disruption.
The outstanding performance of the business in the December quarter is a testament to the efforts of the Praemium team through a very difficult year. The effort to strengthen our resilience, improve our efficiencies and enhance client support have placed us in a very strong position going into the new year.
Although it’s been a rocky road along the way, the Praemium share price has risen roughly 38% over the past six months. The company’s market capitalisation presently rings in at $343 million.
At the time of writing, the Praemium share price is up 11.48% to 68 cents.
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Gretchen Kennedy has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Praemium Limited. The Motley Fool Australia has recommended Praemium Limited. 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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