Praemium’s SMA platform hits $1 billion


By Caitlin Scarr

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Praemium has reached more than $1 billion in funds on its separately managed account (SMA) platform in its first year as responsible entity.

The company acquired the BlackRock Separately Managed Account scheme in December 2012 and fund levels had increased by 65 per cent in the past year.

Praemium chief executive Michael Ohanessian said the $1 billion milestone was pleasing.

“In Australia we have developed a very solid, market-leading portfolio administration business,” Ohanessian said.

“This software-as-a-service business continues to be a key focus for Praemium, however, the move into platform administration on our own SMA technology was a logical next step.”

SMA platforms were useful for advisers looking for more efficient solutions for equities-based portfolios, he said.

“Picking funds on a traditional wrap platform won’t be enough,” he said.

“SMAs’ time has come and we are very well placed.”

The platform currently has over 5000 accounts across 100 model portfolios, which are delivered by more than 20 fund managers.

The result rounds off a positive 12 months for the listed portfolio administration specialist, which achieved revenue growth in all regions it operated in, including Australia, in the 2013 financial year.

Praemium’s revenue was $14.09 million for full-year 2013, which was an 8 per cent increase on the $13.04 million figure in the previous corresponding period, the company said in its preliminary final results for the financial year ending 30 June 2013.

The company’s earnings before interest and taxes loss before items that were unrelated to underlying operations was $1.3 million for the year, a 36 per cent improvement on the prior year.

The impact of the non-operations items incurred during the year resulted in a net profit after tax of $4.4 million.

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