PRAEMIUM LIMITED — Interim / Quarterly Report 2023

Jan 18, 2023

December 2022 update

Year to date flows exceed $1 billion

ASX Release: 19 January 2023, Melbourne

This release relates solely to Praemium's ongoing Australian business. Praemium's International operations were successfully divested 30 June 2022.

Key results for the half-year to 31 December 2022

Praemium reports its funds and flows results for the December 2022 half-year, with the key milestones as follows. All figures provided are unaudited:

• » Total funds under administration (FUA) of $42.7 billion (30 June 2022: $40.5 billion, up 6%)
  • » Platform $20.9 billion (30 June 2022: $19.5 billion, up 7%)
    • Praemium Separately Managed Accounts (SMA) $9.0 billion (30 June 2022: $8.1 billion, up 11%)
    • Powerwrap $12.0 billion (30 June 2022 $11.4 billion, up 5%)
  • » VMAAS non-custodial Portfolio Administration and Reporting Service $21.8 billion (30 June 2022: $21.0 billion, up 4%)
• » Half-yearly net inflows of $1,016 million (half-year to 31 December 2021: $2,186 million, down 53%)
  • » Praemium SMA half-yearly net inflows $670 million (half-year to 31 December 2021: $1,350 million, down 50%)
  • » Powerwrap half-yearly net inflows $346 million (half-year to 31 December 2021: $836 million, down 59%)

» Cash management account holdings

• » Praemium SMA $619 million (6.9% of FUA)
• » Powerwrap $769 million (6.4% of FUA)

Net platform inflows for the December 2022 half-year were augmented by $421 million in positive market movements. This was made up of positive $580 million for the quarter to 31 December 2022 and negative $159 million for the quarter to 30 September 2022. It also compares favourably to $528 million in positive market movement for the half-year to 31 December 2021.

The market movement for the half-year to 31 December 2022 represents approximately 2.2% of the value of Platform FUA as at 30 June 2022.

Quarterly highlights

• » The Transitional Services Agreement (TSA) with Morningstar terminated 31 December 2022, as scheduled at divestment completion
• » There were no material unrecompensed or stranded operating costs associated with providing support under the TSA
• » The Shenzhen office has been substantively closed with a single employee remaining to manage basic wind-up tasks
• » Enhanced Adviser Portal for private wealth firms with order pads and service functionality
• » ESG Insights: now includes the ability to self-manage reporting on securities with positive ESG impacts.
• » Expanded reporting options for Liquidity, portfolio drawdown and risk and valuation by custody reports designed for Private Wealth advisers

Comments from CEO

Praemium CEO Anthony Wamsteker made the following comments about the quarter:

"Investor sentiment has been very subdued in the wake of three successive previous quarters of negative markets and high volatility. Nevertheless, the December quarter of the 2023 financial year has seen both Powerwrap and Praemium's SMA scheme continue to generate positive net flows.

The SMA is our cornerstone product and highest revenue earning service. It achieved rolling annual net inflows of $1.3 billion, including $225 million for the quarter. Its rolling annual net funds flow represents 16% of the starting FUA, an outstanding achievement.

Powerwrap has returned to a reasonably consistent positive flows contribution. It demonstrates advisers continue to value the enhancements and integration implemented over the course of the prior financial year"

Platform flows ($m)	Dec 21	Mar 22	Jun 22	Sep 22	Dec 22
Gross inflows	2,085	1,553	1,492	1,551	1,247
Net inflows	937	446	306	659	357
FUA ($m)	Dec 21	Mar 22	Jun 22	Sep 22	Dec 22
Praemium SMA	8,473	8,478	8,084	8,381	8,951
Powerwrap	12,624	12,225	11,397	11,600	11,967
Australia Platform FUA	21,098	20,703	19,481	19,981	20,918
VMAAS	21,721	21,414	21,000	21,388	21,803
TOTAL FUA	42,819	42,117	40,481	41,369	42,721

Key statistics

Platform FUA Movement ($m)	Dec 21	Mar 22	Jun 22	Sep 22	Dec 22
Opening Platform FUA	19,927	21,098	20,703	19,481	19,981
Praemium SMA	690	362	284	445	225
Powerwrap	247	84	22	214	132
Net inflows	937	446	306	659	357
Market revaluation / other	234	(841)	(1,528)	(159)	580
Closing Platform FUA	21,098	20,703	19,481	19,981	20,918

This announcement is authorised by the Board of Praemium Limited. For further information contact Anthony Wamsteker, CEO, or David Coulter, CFO, Ph: 1800 571 881

About Praemium (ASX: PPS): Praemium is the leading investment platform in Australia, catering to the emerging and established HNW investor market. Servicing more than 125,000 investor portfolios covering over $150 billion in funds for Private Wealth firms, intermediaries, and some of the world's largest financial institutions, Praemium offers access to a comprehensive suite of investment solutions which cater for all investor structures.

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