Fund Manager Summary on Praemium Ltd (ASX:PPS)
In January 2026, TAMIM Asset Management commented that Praemium Ltd (ASX:PPS) delivered a positive Q2 FY26 update with total FUA of 70.5 billion (up 14% YoY), platform FUA of 32.5 billion (up 8% YoY), Spectrum FUA of 3.6 billion with net inflows of 266 million, and announced the Technotia Labs acquisition while flagging the need to convert FUM growth into operating leverage and profit; fund managers broadly echo this view, noting consistent platform momentum driven by Spectrum, improving net inflows and FUA growth, successful client wins and partnerships (Euroz Hartleys, Bell Potter, Morgans), strategic M&A (Powerwrap, OneVue) and management alignment via director buying and a buyback, which together present structural tailwinds in the specialist high‑net‑worth and SMA niche and scope for margin recovery from operating leverage and synergies; however, risks highlighted include integration and execution of recent acquisitions and transitions (OneVue completion), advisor attrition volatility, strong competition from larger peers (Netwealth, HUB24), limited liquidity and index exclusion that can suppress valuation, and the critical need to demonstrate persistent profit growth to close a material valuation gap that some managers view as making Praemium an attractive takeover candidate, so actionable monitoring points are ongoing FUA and Spectrum inflows, adviser retention trends, margin progression in interim results (including the upcoming February results), successful systems and migration integration, and the realization of expected cost synergies from recent corporate actions.
Commentary From The Managers
There are 16 insights from 7 fund managers regarding their investment in Praemium Ltd (ASX:PPS) available on Thesis Tracker.
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Updates are made available to members within 12 hours of being released. The completeness, accuracy or current status of the investments referenced are not guaranteed.
Commentary From The Managers
TAMIM Asset Management
31 Jan 2026
$0.76
Summary
- TAMIM Asset Management believes Praemium's Q2 FY26 update demonstrates renewed FUA momentum and strategic execution and continues to hold because meaningful net inflows, the completed OneVue transition and the Technotia Labs acquisition improve the prospects for operating leverage and profit growth.
- Total FUA $70.5bn (+14% YoY).
- Platform FUA $32.5bn (+8% YoY).
- Scope+ FUA $37.9bn (+19% YoY).
- Spectrum FUA $3.6bn with net inflows $266m.
- SMA FUA $14.6bn with net inflows $24m; OneVue transition completed—transferred $933m into SMA.
- Powerwrap FUA $14.3bn with net inflows $302m, the strongest inflows in some time following prior adviser attrition.
- Acquisition of Technotia Labs announced to accelerate automation and improve client experience.
- Quarter is broadly positive, but all eyes on Feb results to see if FUM growth converts to operating leverage and profit growth ahead of consensus.
Asymmetric Asset Management
31 Oct 2025
$0.92
Summary
- Asymmetric Asset Management notes a significant boost from a ~20% rise in the share price of Praemium Ltd, reaching a multi-year high.
- Praemium reported double-digit gains in Funds under Administration (FUA) in its first quarter update.
- A highlight was $299 million in net inflows onto the newly launched Spectrum platform.
- Spectrum has attracted $3.3 billion to date, contributing to a total of $32 billion administered across all platforms.
- Praemium targets the High Net Worth (HNW) advisor segment, offering tailored products for diverse investment needs.
- An example includes HNW investors with commercial property assets, which can be integrated into Praemium's reporting environment.
- Asymmetric Asset Management continues to hold due to these positive developments and the potential for growth in the HNW segment.
SG Hiscock & Company
31 Oct 2025
$0.92
Summary
- SG Hiscock & Company initiated a small position in Praemium (ASX: PPS) following a strong September-quarter update.
- Praemium reported platform net inflows of $550m (or $667m excluding OneVue) and a 10% YoY increase in FUA to $32.0bn.
- The results reflected broad-based growth across the platform suite, including a rebound in SMA inflows to $237m.
- Praemium saw renewed stability in Powerwrap with inflows of +$131m.
- Ongoing traction in Spectrum, surpassing $1bn in new inflows within 10 months of launch, is noteworthy.
- Spectrum is driving penetration in the high-net-worth segment, supported by partnerships with Euroz Hartleys, Bell Potter, and Morgans.
- The fund manager views platform momentum, reduced adviser attrition, and ongoing operating leverage as supportive of a more positive earnings trajectory.
- SG Hiscock & Company believes Praemium is well-positioned within the specialist platform space, trading at a material valuation discount to HUB24 and Netwealth.
- This investment reflects confidence in accelerating flows and expanding margins.
Jencay Capital
30 Sept 2025
$0.76
Summary
- Jencay Capital continues to hold a positive view on Praemium Ltd, emphasizing its market leadership in Australia's wealth management platform.
- Praemium has secured a new large client, Bell Potter, enhancing its Scope+ outsourced admin service.
- Despite a 45% increase in share price, significant revenue growth of 136% and EPS growth of over 300% has been observed in the past five years.
- Praemium's transition towards a comprehensive wealth management platform through acquisitions and strategy shifts since 2021.
- Competitive positioning has improved, although Hub24 and Netwealth have benefited from the shift away from legacy platforms.
- Praemium holds a unique position with its non-custodial portfolio software (Scope) and strong growth in Scope+ service for wealth advisory businesses.
- Praemium currently services over 40% of the high-net-worth segment via private client stockbrokers, with room for increased market share.
- Future growth is supported by substantial opportunities from new business relationships with major brokers.
- Praemium's valuation remains attractive compared to peers, with the share price approximately 70% below estimated fair value.
- Increased liquidity and index inclusion could narrow the current valuation gap and support future growth.
- Overall, Praemium demonstrates potential for compelling returns as it continues to execute its strategy and capture market share.
Jencay Capital
30 June 2025
$0.64
Summary
- Praemium operates a market leading, modern wealth management platform in Australia.
- It is gaining market share from large, legacy institutional platforms.
- Reported solid net fund inflows in Q3, especially for their new comprehensive wealth platform, Spectrum.
- Directors have been buying shares, indicating confidence in the company's prospects.
Forager Funds
30 June 2025
$0.64
Summary
- Forager Funds notes that Praemium (PPS) has returned to growth, driven by improved fund flows.
- The launch of the Spectrum platform has been well received by advisers, enhancing Praemium's market position.
- Praemium is successfully carving out a niche in the high net worth and separately managed account space.
- Cost management has been effective, leading to recovering margins.
- There is a solid rationale for acquiring OneVue’s platform business, which would add scale and margin leverage.
- Praemium's share price increased by 33% in 2024, reflecting its positive trajectory.
- Despite the share price recovery, it is still trading at about half of the implied value from a rejected bid by Netwealth (NWL) in 2021.
- The logic for platform consolidation remains strong, and Praemium has shown healthy net inflows recently.
- The Spectrum platform generated $440m of net inflows in the last quarter, indicating strong market demand.
- Profitability is expected to rise due to organic revenue growth and synergies from recent acquisitions.
- Praemium is currently trading at one-third of the valuation of its larger peers, making it an attractive prospect for potential acquirers.
Forager Funds
18 June 2025
$0.63
Summary
- Forager Funds views Praemium as a strong player in the high net worth and separately managed accounts platform niche.
- Praemium received a bid from competitor Netwealth (NWL) in 2021; the bid was ultimately rejected.
- Currently, Praemium is trading at about half of the deal’s implied value from 2021.
- The rationale for platform consolidation remains strong.
- Praemium has demonstrated healthy net inflows, notably with $440m from the recent launch of its Spectrum platform.
- Profitability is expected to rise due to organic revenue growth and operational synergies from a recent acquisition.
- Praemium is trading at one-third of the valuation of larger industry peers, making it potentially attractive for acquirers.
Jencay Capital
31 Mar 2025
$0.71
Summary
- Centennial Asset Management believes Zip has the potential to rally in the short term.
- Zip is well positioned to deliver further strong growth in revenues and profitability.
- The US buy now, pay later market remains relatively immature, allowing Zip’s US footprint to grow rapidly.
- New product launches are expected to contribute to the company’s transaction volumes and earnings growth in the coming year.
- Zip’s balance sheet strength and ongoing buyback are expected to support share price performance.
- Zip has surprised the market with better-than-expected earnings over the past year.
- The company has upgraded expectations post the most recent quarter, indicating potential for additional upside earnings risk.
Tamim Funds Management
31 Jan 2025
$0.89
Summary
- Tamim Funds Management notes that Praemium (ASX: PPS) reported Q2 highlights demonstrating strong momentum in the business.
- Total funds under administration (FUA) increased to $62.1 billion, up 29% from $48.3 billion as of December 31, 2023.
- PPS’s next generation IDPS Spectrum achieved quarterly gross and net inflows of $69 million, contributing $72 million to FUA for the quarter.
- Platform FUA reached $30.2 billion, up 32% from $22.9 billion.
- Separately Managed Accounts (SMA) grew to $12.5 billion, up 20%.
- Powerwrap increased to $13.5 billion, reflecting an 8% growth.
- OneVue reported FUA of $4.2 billion, slightly up from $4.1 billion at the time of acquisition.
- Quarterly net inflows totaled $371 million, significantly higher than $139 million in the previous quarter.
- Spectrum net inflows accounted for $69 million, while SMA net inflows were $261 million.
- Powerwrap saw net inflows of $78 million, contrasting with a previous quarter's net outflow of $60 million.
- OneVue experienced net outflows of $37 million, a shift from a net inflow of $34 million in the previous quarter.
- PPS share price has more than doubled since Tamim Funds Management took a position last year.
- The fund management took profits as the share price reached their short-term valuation target.
- Tamim Funds Management maintains a smaller position heading into the February results period, planning to reassess their position.
Asymmetric Asset Management
31 Jan 2025
$0.89
Summary
- Asymmetric Asset Management notes Praemium is positioned well to benefit from increasing demand for efficient asset management solutions for Financial Advisors.
- Praemium reported solid quarterly FUA inflows of $371 million, with $261 million specifically into the Praemium SMA.
- The SMA received the best inflow in nine quarters, indicating strong market interest.
- Recent challenges included Financial Advisors transitioning to different Advice Groups, affecting the Powerwrap product.
- This transition is considered a short-term headwind that is outside of Praemium’s control.
- Positive signs include a return to net inflows in Powerwrap and management's expectation that these negative effects will diminish over time.
Jencay Capital
31 Dec 2024
$0.74
Summary
- Centennial Asset Management believes Zip has the potential to rally in the short term.
- Zip is well positioned to deliver further strong growth in revenues and profitability.
- The US buy now, pay later market remains relatively immature, allowing Zip’s US footprint to grow rapidly.
- New product launches are expected to contribute to the company’s transaction volumes and earnings growth in the coming year.
- Zip’s balance sheet strength and ongoing buyback are expected to support share price performance.
- Zip has surprised the market with better-than-expected earnings over the past year.
- The company has upgraded expectations post the most recent quarter, indicating potential for additional upside earnings risk.
Forager Funds
31 Dec 2024
$0.74
Summary
- Praemium Ltd. (PPS) has experienced challenges due to a cost-related disappointment at the November 2023 annual general meeting.
- In the past twelve months, the business has shown significant progress.
- The second half of the financial year demonstrated effective cost control along with reasonable revenue growth.
- Management’s preferred profitability measure increased 42% compared to a weaker first half.
- The business is considered structurally growing.
- Comparable businesses in the sector are trading at much higher multiples.
- There is an increasing investor interest in the company.
- As a result, PPS's share price rose by 91% in 2024.
- Forager Funds continues to hold due to these positive developments in Praemium's performance.
Asymmetric Asset Management
31 Oct 2024
$0.68
Summary
- Investment platform provider Praemium gained ~16% over the month.
- Asymmetric Asset Management attended the Praemium Investor Day in early November.
- The event highlighted the increased functionality of their latest platform release named Spectrum.
- The release of Spectrum is being positively received by clients and potential clients.
- Asymmetric Asset Management continues to hold Praemium as part of their investment thesis.
Jencay Capital
30 Sept 2024
$0.59
Summary
- Centennial Asset Management believes Zip has the potential to rally in the short term.
- Zip is well positioned to deliver further strong growth in revenues and profitability.
- The US buy now, pay later market remains relatively immature, allowing Zip’s US footprint to grow rapidly.
- New product launches are expected to contribute to the company’s transaction volumes and earnings growth in the coming year.
- Zip’s balance sheet strength and ongoing buyback are expected to support share price performance.
- Zip has surprised the market with better-than-expected earnings over the past year.
- The company has upgraded expectations post the most recent quarter, indicating potential for additional upside earnings risk.
Spheria Asset Management
31 Dec 2023
$0.39
Summary
- Praemium (PPS.ASX) share price fell 7% in December, underperforming the market which saw gains.
- Company guidance from late November indicated EBITDA would be ~20% lower than the previous comparable period, disappointing expectations.
- The downgrade was attributed to increased costs (+10% on the prior half) and pressure on revenue margins.
- Market reaction was severe, with the stock experiencing aggressive sell-off.
- Despite the current challenges, Praemium is the 3rd specialty financial platform behind HUB.ASX and NWL.ASX.
- Praemium trades at approximately 1/3 of the EBIT multiple compared to peers, currently around 12x FY 24 EV/EBIT.
- Spheria Asset Management has added to the position during the pullback.
Forager Funds
31 Dec 2023
$0.39
Summary
- Forager Funds identifies Praemium (PPS) as a new addition to the portfolio.
- Praemium is Australia's third-largest independent investment platform with $44 billion in funds under advice.
- The company has a strong position in key niches despite competition from Hub (HUB) and Netwealth.
- Recent changes in management and board, along with the sale of a loss-making UK business, support future growth.
- Valuation appeared appealing as share price halved during market downturn in 2022-2023.
- Post initial investment, Praemium revealed a significant cost inflation issue for the first half of this financial year.
- Expected costs to be 10% higher than the second half of the previous year, impacting margins.
- First-half earnings before interest and tax anticipated to be 20% lower compared to the previous period.
- Share price ended November down 24%, stabilizing after prior lows of 34%.
- Praemium’s revenues may benefit from market recovery in November and December.
- Forager Funds will seek to see more cost discipline before considering further investment increases.
The completeness, accuracy or current status of the investments referenced are not guaranteed.
Frequently Asked Questions
Who is investing in Praemium Ltd (ASX:PPS)?
Fund managers including Spheria Asset Management, Asymmetric Asset Management, Forager Funds, Jencay Capital, Tamim Funds Management, SG Hiscock & Company and TAMIM Asset Management have invested in Praemium Ltd (ASX:PPS).
Why do fund managers invest in Praemium Ltd?
Fund managers invest in Praemium Ltd due to its strong position in the wealth management platform sector, particularly for high net worth individuals. The company has demonstrated robust growth in funds under advice and net inflows, driven by its new Spectrum platform, which has been well-received by financial advisors. Investors value Praemium for its competitive pricing relative to larger peers and its ability to expand market share amidst platform consolidation trends. Additionally, the company's focus on cost control and improving margins enhances its risk/reward profile.
What happened to Praemium Ltd (ASX:PPS)?
Fund managers are investing in Praemium Ltd due to its strong growth trajectory and market positioning within the wealth management platform sector. Highlights include impressive net inflows of $550 million, a 10% year-on-year increase in Funds Under Administration (FUA) reaching $32 billion, and a successful launch of the Spectrum platform which attracted substantial new investments. Praemium is differentiating itself by targeting the high-net-worth advisory segment with tailored solutions. Additionally, its recent strategic focus and partnerships with major stockbrokers enhance its competitive advantage, positioning the company for continued growth and value appreciation compared to its peers.
What is the short interest in Praemium Ltd (ASX:PPS)?
According to ASIC filings, there is negligible or no short interest in Praemium Ltd (ASX:PPS).
What does Praemium Ltd (ASX:PPS) do?
Praemium Ltd. engages in the provision of fully integrated wealth management platform, which provides advisers and wealth managers with the ability to construct a holistic wealth management solution for their clients via a seamless digital platform experience. It operates through the Australia and International geographical segments. The Australia segment includes virtual managed accounts and financial planning software licenses and administering the Australian managed account platform. The International segment is involved in financial planning software licenses and administering the International managed account platform. The company was founded by Arthur Naoumidis in October 2001 and is headquartered in Melbourne, Australia.