PRAEMIUM LIMITED — Earnings Release 2015

Jan 17, 2016

Record inflows of $1.7 billion in 2015

18 January 2016, Melbourne: Praemium (ASX: PPS) is delighted to advise that gross inflows into its platform and managed funds were A$439 million for the December quarter and a record A$1.7 billion for 2015, 33% greater than in 2014.

December quarter gross inflows were the third highest ever achieved demonstrating continuing strong growth momentum.

Praemium's strong new business development has pushed funds under administration (FUA) at 31 December 2015 to $4.5 billion, representing a 41% increase over 31 December 2014. Closing FUA was $2.8 billion for the Australian platform and £822 million (equivalent to A$1.7 billion) for the International platform.

Praemium CEO Michael Ohanessian said, "We are obviously delighted with another record year for asset inflows across our business. The company continues to grow strongly with assets under administration increasing 12% over the September quarter to $4.5 billion.

"The shift to managed accounts in Australia is accelerating and our proven track record in Separately Managed Accounts continues to enable us to win new business. The pipeline of business is particularly strong and our team is working hard to support our new and existing clients as they transition business to our more efficient SMA platform.

"While the audit review of Praemium's accounts as at 31 December 2015 is not yet complete, we look forward to being able to announce those results during the third week of February."

Funds under management (FUM) by Praemium's in-house multi asset investment management team Smart Investment Management reached $435 million at 31 December 2015 (this includes $56 million in the innovative new Smartfund 80% Protected fund launched in September 2015).

The $435 million in FUM comprises:

• Assets in model portfolios on platform at $265 million, and
• Assets in Praemium's Smartfund managed fund range (including the 80% Protected fund) at $170 million.

Additionally, assets in the VT Morningstar Informed Smartfunds were $200 million at end 2015.

Mr Ohanessian added, "I'm also very pleased with the progress of our London-based investment management team in their second year with us. The growth in funds under management from our multi-asset strategies is helping drive margin and scalability in the business and is an important element in our plans to move our UK business toward profitability.

"With strong top-line growth and a strong balance sheet, we continue to invest in growing our business. Our R&D investment program accelerated through 2015 and we are very excited about the quality of product that is evolving as we strive to continue to be the platform of choice for innovative and forward-looking wealth firms."

About Praemium: Praemium is a global leader in the provision of investment administration, Separately Managed Account (SMA) and financial planning technology platforms. Praemium administers in excess of 300,000 investor accounts covering approximately $80 billion in funds globally, and currently provides services to approximately 900 financial institutions and intermediaries, including some of the world's largest financial institutions. For further information contact: Mr Paul Gutteridge, Company Secretary +613 8622 1222