Uncertainty leads to net inflow decline at Praemium
Negative market movements led to a 53% decline in quarterly net inflows for Praemium in the June quarter.
In its quarterly results, the firm said quarterly net inflows for the three months to 30 June were $306 million, down 53% from the prior comparative period when they were $651 million.
The firm attributed this to “heightened uncertainty over inflation, labour availability supply chain vulnerability and global conflict which subdued investment activity”.
Financial year net inflows were $2.9 billion, up 92% from the prior comparative period, while total funds under administration were $40.5 billion, up 10% from the previous corresponding period.
During the quarter, Praemium divested its international business for £35 million ($61 million), this had annual flows of $1.2 billion and funds under administration of $5.4 billion at the time of sale.
Chief executive, Anthony Wamsteker, said: “Despite unsettled market conditions which have impacted all wealth management firms, Praemium delivered solid net inflows this quarter and strong annual net inflows. The divestment of our international business allows us to focus on our strategy to become one of Australia’s largest independent specialist platform providers”.
AUTHOR
Laura Dew
Recommended for you
With Insignia Financial suffering a cyber attack on its Expand platform, this can potentially have a negative impact on the two private equity bids currently in play for the firm.
State Street Global Advisors has made an equity investment in Ethic, a platform helping financial advisers to produce bespoke portfolios, reflecting the greater client demand for customised portfolios.
WT Financial’s new entity with Merchant, Investco, has entered into a heads of agreement to merge three financial advice firms.
ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test.
