Shares in portfolio administrator Praemium Ltd (ASX: PPS) have risen 17% to start the week after releasing its quarterly update.
Praemium provides investment administration, managed account and financial planning technology platforms. It currently reports on over 500,000 investor accounts covering over $140 billion in funds globally and provides services to more than 1,000 financial institutions and intermediaries.
Another Strong Quarter
Praemium has managed to increase its Funds Under Administration (FUA) by 24% during the September quarter to $20 billion. The milestone was reached thanks to records in both quarterly gross inflows of $1.0 billion and quarterly net inflows of $558 million.
The $20 billion in FUA consists of $10.3 billion in custodial platform assets and a further $9.7 billion in administration of non-custody assets.
Both the Australian and International platforms have seen strong growth in FUA, up by by 28% and 33% respectively on this time last year.
Praemium’s non custodial VMA Administration Service (VMAAS) increased an impressive 49% over the quarter to reach $9.7 billion.
Last month, the company was awarded as winner of the Leading Platform for Discretionary Management at the Schroders UK Platform Awards.
Praemium CEO Michael Ohanessian said: “We are delighted to report a number of key milestones this quarter, with platform inflows for the first time passing $1 billion in gross terms and $0.5 billion in net terms respectively.”
What Now?
Despite the strong progress being made in recent quarters, the Praemium share price is still down more than 50% over the past year. At these levels, Praemium shares may start to attract some interest from value investors looking for a bargain.
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At the time of publishing, Luke has no financial interest in any companies mentioned.
