Pinned straw:
Checking on the Praemium thesis.
Is their new platform (spectrum) gaining traction fast enough to allay outflows from older ones?
Overall, yes - net overall platform flows were positive 550m, a sharp reversal from last quarter.
Spectrum had 483m inflows, similar to last quarter, and there were higher outflows (184m), but net flows were still 300m for Spectrum.
The bleeding of the legacy platform, Powerwrap, actually reversed in Q1 which was surprising. One negative was the lost of 5% of total customers in non-custodial business.
There's not enough data to draw strong conclusions on product quality but encouraging signs. It's also a lot easier to grow in a bull market.
Net Quarterly Platform Inflows
HUB’s results, released today, showed inflows of $5.2bn, which is 10× greater than Praemium’s. This drove platform FUA growth of 8%, compared to Praemium’s 6.5%. The impressive thing about HUB's organic growth this quarter was that it excluded large migrations, a real indication of product quality.
Overall, encouraging progress from Praemium.
Just listened to the call, a key part of my thesis is the quality of the new product (Spectrum). The higher outflows for Spectrum of 184m were due to client migrating from OneVue (old platform) who planned to exit. So it looks like a one-off (famous last words…) and not a reflection on Spectrum itself. I’d expect spectrum outflows to reduce next quarter.
Hub 24 jumped 10 percent on their update vs Praemium 7.8 percent
Hub 24 behaving like a small cap yesterday. Interesting...