Praemium Limited

ASX:PPS

Praemium Limited

ASX:PPS
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$0.830 (-2.4%)
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Forum Topics PPS PPS CEO Interview

Pinned straw:
Strawman
Added 5 months ago

I've not looked closely at Praemium, but the key points the CEO was making were:

  • Wealth management is a huge market -- around $1.2 trillion in platform assets, almost all directed by financial advisers. But the space is still dominated by legacy platforms (AMP, Insignia, Westpac’s Panorama, and CFS/CommBank) that are clunky, outdated, and losing relevance.
  • These incumbents are consistently bleeding market share (around 3% per year, equivalent to ~$36 billion annually). That share is being picked up by the three “challenger” platforms: Netwealth, Hub24, and Praemium, as well as a long tail of smaller players.
  • The newer platforms offer modern, feature-rich solutions that advisers and clients actually want to use. But as Anthony pointed out, Hub24 and Netwealth are capturing the lion’s share of new inflows, despite Praemium ranking similarly in adviser satisfaction surveys.
  • That’s led to a significant valuation gap. Hub and Netwealth have a combined market cap of ~$14 billion (roughly $7b each), while Praemium sits at ~$280 million. That’s a ~25x gap, despite Hub and Netwealth being only:
  • ~3x larger in funds under administration (FUA)
  • ~3–4x larger in revenue
  • ~6x more profitable, which Anthony attributes to scale and operating leverage
  • Praemium has spent the past year plugging key product gaps, most notably with the launch of Spectrum, its full wrap platform. With the product now “done,” the focus is squarely on executing; increasing net fund inflows, improving brand awareness, and lifting sales conversion.
  • A key point of difference is Praemium’s focus on the High Net Worth (HNW) segment (defined as individuals with >$1 million in investable assets, excluding the family home). It’s a fast-growing segment, and around 85% of their wealth is still held outside of platforms, presenting a large opportunity.
  • Praemium also offers non-custodial reporting, giving advisers visibility over a client’s full portfolio, even assets held off-platform, which is particularly appealing to HNW clients and their advisers.


In short, Anthony's message was that the strategy’s in place, the product’s in place, now it’s about capturing a fair share of flows. If Praemium can lift its market share even modestly, the argument is that the valuation gap should begin to close.

Recording is on the meetings page. Transcript is here:

PPS Transcript.pdf
OxyBBear
Added 5 months ago

Nice contract win by PPS with Bell Financial Group today (announcement below).

PPS is not considered the same quality as HUB/NWL but the sizeable difference in value that the market is ascribing to the latter two over PPS has me taking a position in PPS as I do see the difference in quality closing.

Bell Potter partnership drives significant growth milestone for Praemium. 10 July 2025, Melbourne, Victoria:

Praemium (PPS) is pleased to announce that following a comprehensive selection process, Bell Financial Group (BFG) has chosen Praemium’s administration solution, Scope+ to support its business. The leading stockbroking and investment management firm will utilise Praemium to administer over 2,200 client portfolios. The partnership results in:

» An increase of $6bn in funds under administration (FUA),

» Acceleration of the Scope+ total FUA by 19%1 ,

» A 23% increase in Scope+ portfolios1

» A 10% increase in the group total FUA, to approximately $68bn post onboarding1 .

This partnership reflects growing adviser demand for high-quality, scalable administration services that enhance operational efficiency and support the delivery of sophisticated wealth solutions. The decision by a prominent wealth management firm to partner with Praemium for administration services underscores the group’s leadership position and the strength of its proposition.

“This is a milestone moment for our Scope+ offering, and one that reaffirms the calibre of our solution, and the trust leading firms are placing in our capability,” said Anthony Wamsteker, CEO at Praemium. “We continue to see exceptionally strong growth in this area as firms seek to streamline operations while delivering an exceptional experience to their clients.”

Co-CEO of Bell Potter Arnie Selvarajah “Our focus is on delivering high-value, client-centric wealth advice. By partnering with a specialist provider like Praemium for administration, we’re able to free up our team to do what they do best - spend more time with clients, and develop tailored strategies, to help them achieve their financial goals.”

This development highlights the group’s continued investment in scalable non-custody solutions and high-value adviser partnerships, aligning with its strategy to lead in premium wealth solutions and capitalise on growth in the HNW investor segment. 1 Based on results for the quarter ended 31 March 2025. 


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