PRAEMIUM LIMITED — Earnings Release 2016

Jan 9, 2017

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Praemium ’ s FUA up 29% in 2016

10 January 2017, Melbourne: Praemium is pleased to report that it has delivered a strong result for the 2016 year, with funds under administration (FUA) up 29% to $5.4 billion at 31 December 2016, an increase of $1.2 billion.

Strong momentum continued in the December 2016 quarter, with key milestones including:

• Combined gross inflows of $422 million, the third highest on record

  • International gross inflows of $125 million, the second highest ever following September 2016’s record,

  • Australian gross inflows of $297 million, with new business development maintaining strong growth;

• Completion of the acquisition of UK-based SIPP provider Wensley Mackay; and

• Assets under management by the company’s in-house investment team up 51% on last year to $549 million.

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Refer to Appendix for quarterly FUA movement

Stock markets recorded strong returns for the December quarter, with the FTSE100 up 3.5% and the ASX200 up 4.2%. When combined with asset inflows, Praemium’s FUA rose 7% from the September quarter from $5.07 billion to $5.40 billion. Compared to last year, Praemium’s overall FUA is up 29%, with the international business up 34% and the Australian business up 26%.

In Australia, FUA in Praemium’s retail superannuation SMA offering reached $470 million, or 13% of the Australian SMA, compared to 6% one year ago. Praemium remains focused on meeting client demands for the growing superannuation market, and has made a number of important improvements to the service which will enable us to accelerate growth and deliver an enhanced service in 2017.

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Praemium’s in-house investment

management proposition of model portfolios and multi-asset funds grew to £323 million as at 31 December 2016, representing a 51% increase in the past 12 months in local currency.

Since its launch in September 2015, the Smartfund 80% Protected range of multi-asset funds has reached £110 million in FUA, a 29% increase over the last quarter.

Praemium’s CEO Michael Ohanessian commented, “Following the record September quarter, the December quarter has been another strong result for our global SMA platform inflows, especially given the uncertainties created by major geopolitical shifts during 2016. Particularly pleasing is the international platform, which continues its trajectory as inflows accelerated strongly in the second half of 2016.

“We are also pleased to have now completed the acquisition of the Wensley Mackay SIPP business, a UK-government-approved personal pension scheme, to complement our platform and open up a new distribution channel for our investment offerings.

“The UK domestic version of the Smartfund 80% Protected Growth fund, launched in February 2016, delivered an 18% return through 2016. This is an outstanding result, and we believe the fund will be a compelling option for advisers to consider for their SIPP clients, especially those who are at or near retirement. We expect strong growth in this product throughout 2017.

Appendix: FUA and flows by region

$ million	Sep 2016	Inflows	Other^	Dec 2016
Australia	3,308	297	(67)	3,538
International	1,759	125	(20)	1,864
Total	5,067	422	(87)	5,402
International (£)	1,035	76	(13)	1,098

*International FUA in GBP is translated at spot rate for quarter end FUA (0.5892) and quarterly average for inflows (0.604) ^Other includes changes in market value of assets, foreign exchange movements (for International FUA) and fund outflows.

About Praemium (ASX: PPS): 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 700 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