Why fund managers say Praemium trades well below fair value
Praemium's new Spectrum platform has closed its product gap with HUB24 and Netwealth, but the stock still trades at a steep valuation discount to both peers.
22 May 2026 · 6 min read
In short
Praemium's new Spectrum wealth platform attracted $3.3 billion in funds under administration within its first year of launch.
Jencay Capital estimates Praemium's share price trades roughly 70% below its assessment of fair value, despite 15-20% compound annual revenue growth.
The company has won new business from three of Australia's largest private client stockbrokers: Euroz Hartleys, Morgans and Bell Potter.
Wealth management platform Praemium trades at what Jencay Capital's Quarterly Report estimates is roughly 70% below its assessment of fair value, despite growing revenue at a 15-20% compound annual rate and successfully carving out a niche serving high-net-worth advisers that market leaders HUB24 and Netwealth have not fully penetrated.
A product gap closed by Spectrum
Jencay Capital's report detailed the strategic missteps that left Praemium behind its larger peers: an international expansion in the 2010s distracted management while Netwealth and HUB24 caught up in managed accounts, and a singular early focus on that category became a hurdle to attracting clients wanting full wrap functionality. A 2021 management change triggered the sale of the loss-making international business, a merger with Powerwrap and the acquisition of OneVue's platform business, adding wrap functionality and scale, before the 2025 launch of Spectrum, a comprehensive wealth platform that Jencay says has closed Praemium's product gap relative to peers.
Praemium remains well-positioned within the specialist platform space, trading at a material valuation discount to HUB24 and Netwealth despite accelerating flows and expanding margins.
— SG Hiscock & Company, Monthly Report, October 2025
Asymmetric Asset Management's October 2025 Monthly Report detailed the early traction behind that re-rating case: a roughly 20% share price rise to a multi-year high followed a first-quarter update showing $299 million in net inflows onto Spectrum alone, taking the new platform to $3.3 billion in funds under administration, while the group overall administers $32 billion. Jencay Capital's report highlighted Praemium's differentiated positioning within the high-net-worth segment, including non-custodial portfolio software serving 64,000 client portfolios and an outsourced administration service, Scope+, supporting close to 10,000 client accounts and $34 billion in funds under administration, alongside new business wins from three of Australia's largest private client stockbrokers: Euroz Hartleys, Morgans and Bell Potter.
What managers are watching next
SG Hiscock & Company's October 2025 report confirmed the operating momentum showing through in the numbers: platform net inflows of $550 million for the September quarter, or $667 million excluding OneVue, with funds under administration rising 10% year on year to $32.0 billion, alongside a rebound in separately managed account inflows and renewed stability at Powerwrap. With Jencay Capital estimating Praemium services over 40% of the high-net-worth stockbroker advice segment but has only captured 10-20% of the available opportunity within that base, the pace at which recently won stockbroker relationships convert into deeper platform penetration remains the key growth lever managers are tracking.
Questions
What is Praemium's Spectrum platform?
Spectrum is Praemium's comprehensive wealth management platform launched in 2025, which Jencay Capital says has closed the company's product gap relative to larger peers HUB24 and Netwealth, attracting $3.3 billion in funds under administration within its first year.
Why does Praemium trade at a discount to HUB24 and Netwealth?
Jencay Capital attributes Praemium's discount to past strategic missteps, including a distracting international expansion in the 2010s that let competitors Netwealth and HUB24 catch up in managed accounts, even though Praemium has since closed much of that product gap.
What is Praemium's position in the high-net-worth advice segment?
Praemium services over 40% of the high-net-worth stockbroker advice segment in some form, according to Jencay Capital, though the manager estimates the company has captured only 10-20% of its full potential opportunity within that customer base.
9 managers, 27 comments, with each manager's latest recorded position.
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