Praemium Faces Regulatory and Adviser Challenges Despite Strong Platform Growth

Strong Platform Growth Anchors Praemium’s Q1 Performance

Praemium has kicked off FY2026 with a solid quarter, reporting a 13% increase in total Funds Under Administration (FUA) to $67 billion as of 30 September 2025. This growth was underpinned by a 10% rise in platform FUA to $32 billion, reflecting the company’s successful strategic emphasis on the high-net-worth (HNW) segment.

The standout performer was the Spectrum IDPS solution, which attracted net inflows of $299 million during the quarter, pushing its FUA to $3.3 billion. This surge highlights strong market demand for next-generation investment platforms tailored to sophisticated advisers and their clients. Spectrum’s growth was fueled by over $1 billion in new business inflows and nearly $2 billion transitioned from other Praemium products, signaling effective cross-platform migration.

Solid Contributions from SMA and Powerwrap

Praemium’s Separately Managed Accounts (SMA) platform also delivered impressive results, with net inflows of $237 million lifting FUA to $13.6 billion; a 14% increase year-on-year. Powerwrap contributed net inflows of $131 million, growing its FUA to $14 billion and reflecting renewed adviser engagement and stabilisation after previous adviser exits.

Overall, quarterly net inflows across these platforms reached $667 million, excluding OneVue transfers. Market movements added a further $772 million, although this figure includes a $286 million reduction related to First Guardian holdings, an area where Praemium is actively working with regulators and industry bodies amid ongoing legal and recovery processes.

Non-Custodial Growth and OneVue Transition Progress

Beyond custodial platforms, Praemium’s Scope+ non-custodial portfolio administration business grew 15% to $35 billion in FUA. The company added five new advice groups and 265 portfolios during the quarter, offsetting a managed client exit that reduced Scope portfolios. Notably, Praemium is onboarding significant clients such as Bell Potter, expected to add approximately $6 billion in portfolios, which should further boost Scope+ FUA in coming quarters.

The transition of OneVue assets is advancing as planned, with $474 million transferred to Spectrum and $10 million to Scope+ this quarter. OneVue’s remaining FUA stands at $1.1 billion, with final transfers anticipated in December 2025. This consolidation effort aims to streamline Praemium’s platform offerings and enhance client outcomes over the long term.

Strategic Initiatives and Future Outlook

Praemium continues to invest in strategic initiatives to support growth and operational efficiency. These include forming a dedicated transitions and implementations team to improve client onboarding, expanding access to global funds via Clearstream’s Vestima platform, and developing an in-house superannuation administration capability in partnership with Technotia Laboratories, expected to be fully connected by early 2026.

CEO Anthony Wamsteker expressed confidence in the company’s trajectory, noting the milestone of $1 billion in new business inflows for Spectrum within 10 months of launch and the strong momentum across both custodial and non-custodial platforms. While recent adviser transitions and OneVue asset transfers have posed headwinds, Praemium is seeing encouraging signs of easing outflows and sustained adviser interest.