PRAEMIUM LIMITED — Interim / Quarterly Report 2021

Apr 14, 2021

March 2021 quarterly update

Praemium FUA reaches a new record

15 April 2021, Melbourne: Praemium is pleased to provide its update for the March 2021 quarter, with record funds under administration (FUA) of $37.9 billion, up 11% in the quarter and up 96% compared to March 2020.

Key results for the quarter

Refer to the Key Statistics table for further detail (*Net inflows exclude client transition)

FUA reached record highs in all segments globally, with:

• » Australia platform FUA of $16.9 billion, up 224% compared to the prior year;
• » International platform FUA of $4.4 billion, up 42% compared to the prior year; and
• » FUA for VMAAS of $16.7 billion, up 51% compared to the prior year.

Net platform inflows for the March 2021 quarter were $801 million*, a 149% increase compared to the reported March 2020 quarter. Platforms in both Australia and International recorded strong growth with:

• » Net inflows of $448 million* for the Australian platform, a 194% increase compared to the reported March 2020 quarter. This represents the 3rd -highest quarter in reported inflows despite the Xmas holiday season; and
• » Record net inflows of $353 million for the International platform, a 108% increase compared to the March 2020 quarter.

Industry recognition

Praemium's continued its strong momentum in innovation, placing 3rd overall in Investment Trends 2020 Platform Competitive Analysis and Benchmarking Report.

Praemium was winner across 9 categories, including Managed Accounts (Product Offering), Business Reporting, Online Business Management, Integration and Non-Custodial Assets.

In further recognition of our International platform, Praemium was awarded winner of Best Platform for Discretionary Fund Management at London's Professional Adviser awards in March 2021.

Development highlights

Q1, 2021 has been a busy period for our Australian platforms, with the rollout of significant new digital functionality that will assist advice groups in meeting their new client consent obligations covering their ongoing fee arrangements. Having worked closely with a number of advice groups during the design phase over the past few months, we were delighted to roll this new functionality out to the broader market as they prepare for the new regulations that will commence in July.

Other key development highlights during the quarter were:

• » The release of 'Live Chat' to advisers, who now have online access via the portal to the Praemium service teams;
• » The release of a range of new reports covering fees, asset allocation and cashflow instructions;
• » Extension of our data feeds and API services, including the launch of the epi 4.3 protocol which provides third parties with access to Praemium data; and
• » Significant enhancements to our International platform payments functionality.

Comments from CEO

Praemium CEO Michael Ohanessian made the following comments about the quarter:

"Praemium has doubled in size over the past year. Despite the pandemic, the past 12 months have been the most transformational in our story thus far.

"We continue to build scale and capability. We were delighted to move up to 3rd place in the Investment Trends 2020 Platform Competitive Analysis and Benchmarking Report. We also ranked 3rd of 22 platforms in the UK's The Lang Cat Platform Market Scorecard: March 2021.

"Our ability to service managed accounts either on or off platform is an important differentiator in delivering a holistic wealth management service. In Australia, research indicates that over 20% of wealth sits 'off-platform' and is hence a huge admin burden for advice businesses. The rapid growth of our offplatform administration service is a testament to the significant opportunity for Praemium to meet this largely un-met need.

"We have opened a new office in Edinburgh to support growth for our International platform. As a cluster for fintech service expertise, Edinburgh is a logical centre from which we can successfully onboard a rapidly expanding sales pipeline."

Key statistics

Platform flows ($m) 1	Mar 20	Jun 20	Sep 20	Dec 20	Mar 21
Gross inflows
Australia	393	441	1,483	1,514	1,235
International	311	280	258	396	466
Total gross inflows	704	721	1,741	1,910	1,701
Net inflows
Australia	152	273	561	813	448
International	169	186	172	303	353
Total net inflows2	321	459	733	1,116	801

FUA ($m)	Mar 20	Jun 20	Sep 20	Dec 20	Mar 21
Australia Platform	5,213	5,684	15,005	16,445	16,873
International Platform3	3,074	3,226	3,465	3,905	4,368
Total Platform FUA	8,287	8,910	18,470	20,350	21,241
VMAAS4	11,062	11,376	12,771	13,974	16,692
TOTAL FUA	19,349	20,286	31,241	34,324	37,933

Investment Mgmt, Smartim ($m)	Mar 20	Jun 20	Sep 20	Dec 20	Mar 21
Managed Funds, FUM	298	258	253	255	259
Model Portfolios, FUA	331	342	350	377	384
TOTAL	629	600	603	632	643

Notes (all figures provided are unaudited):

1Current quarter's International flows are translated at the quarter average of 0.5575.

2Net flows exclude a client transition of $403 million in the current quarter (previous quarter $267 million).

3 International FUA in GBP is translated at spot rate for quarter end FUA of 0.5538.

4VMAAS comprises FUA under the non-custodial VMA Administration Service.

This announcement is authorised by the Board of Praemium Limited

For further information contact Paul Gutteridge, Company Secretary, Ph: 1800 571 881

About Praemium (ASX: PPS): Praemium is a global leader in the provision of technology platforms for managed accounts, investment administration and financial planning. Praemium services in excess of 300,000 investor accounts covering over $140 billion in funds globally for more than 1,000 financial institutions and intermediaries, including some of the world's largest financial institutions.

Praemium Limited (ABN 74 098 405 826), Level 19, 367 Collins Street, Melbourne VIC 3000 Australia