The Australian investment and wealth management platform market is continuing to grow strongly with Netwealth and Praemium providing bullish updates about funds under administration (FUM).
Netwealth reported record net inflows of $4.5 billion in the second quarter (Q2) of the 2025 financial year (FY25), 69.8% higher than the previous corresponding quarter (pcp).
The inflow in the three months to 31 December, which beat the previous record of $4.0 billion in Q1, helped lift FUA to $101.6 billion at 31 December 2024, a 30.2% increase.
“FUA net inflows were driven by consistently high transition rates from existing financial intermediaries, and strong conversion rates from the company’s new business pipeline across all client groups and segments,” the company said in an Australian Securities Exchange (ASX) announcement.
Netwealth said although it expected Q3 FY25 flows to be seasonally lower, it was confident about the inflows outlook for the remainder of FY25.
Meanwhile, Praemium reported of FUA of $62.1 billion at 31 December, a 29% increase over the previous 12 months, with Australian platform FUA growing 32% and Scope+ non-custodial portfolio administration and reporting service FUA rising 26%.
The increase in Australia platform FUA over the year consisted mostly of the acquisition of the OneVue platform business ($4.078 billion) but also $2.887 billion of market revaluations and $297 million of net inflows.
Praemium’s said its next generation investor directed portfolio service Spectrum achieved gross and net inflows of $69 million in the three months to 31 December, almost all in December, and $3 million of revaluations, giving it $72 million of FUA.
CEO Anthony Wamsteker said in ASX announcement Praemium’s separately-managed accounts (SMA) scheme, traditionally the company’s cornerstone product and highest margin service, achieved the best quarterly net inflows in nine quarters.
Last week HUB24 announced that FUA increased 36% to A$98.9 billion in the second quarter of FY25, driven by record quarterly net inflows of $5.5 billion (up 23%).
At 3pm AEDT (4am GMT) Netwealth (ASX: NWL) shares were 61 cents (1.036%) higher at $31.51 and Praemium (ASX: PMS) was 0.5 cents (0.588%) higher at 85.5 cents.
This capitalised the companies at $7.31 billion and $406.05 million respectively.
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