ASX Small Cap Advances Following Favourable Growth in Funds Under Administration

Aditi Sarkar

22 April 2026 02:47 PM AEST

ASX Small Cap Advances Following Favourable Growth in Funds Under Administration

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Highlights

Praemium’s total funds under Administration (FUA) reached $73.7 billion, marking an 18% increase year-on-year.
Platform FUA grew to $32.2 billion, supported by $598 million in net inflows during the quarter.
The Spectrum platform recorded exceptional quarterly net flows of $502 million, growing its total FUA to $4.0 billion.
Scope+ non-custodial portfolio administration FUA rose 28% to $41.5 billion, with portfolio numbers reaching 11,969.
The integration of Technotia is underway, with the company on track to reduce annual technology salary costs by approximately $9 million on a run-rate basis.

Praemium Ltd (ASX:PPS) shares saw a positive reaction in the afternoon session on 22 April 2026, rising 2.72% to AUD 0.76. This uptick follows the release of the company’s Q3 FY26 business update, which highlighted resilient growth in its core platforms despite broader market volatility. The stock has maintained a solid performance, remaining 11.03% higher over the past year as investors continue to track the firm's strategic initiatives and market share gains.

Praemium Ltd is a leading provider of investment, administration, and retirement solutions for Australia’s wealthiest investors. The firm empowers financial advisers by providing seamless access to global markets and over 350 integrated Separately Managed Accounts (SMAs). Through its advanced technology and reporting capabilities, Praemium enables the management of complex wealth portfolios, offering a comprehensive view of total wealth from non-custody assets to superannuation solutions.

Platform Growth Amid Market Volatility

For the quarter ending 31 March 2026, Praemium reported a resilient performance across its platform solutions. Despite global market volatility—which resulted in a market movement impact of negative $923 million—Total FUA grew to $73.7 billion. The company’s platform solutions attracted $598 million in net inflows for the third quarter, a step up from the momentum established in the first half of the financial year.

Adviser demand, particularly from the high-net-worth (HNW) segment, remains a primary driver of this flow performance. Clients continue to seek out Praemium’s platform solutions for their governance, transparency, and capacity to handle complex investment structures. This focus on sophisticated strategies was evidenced by the addition of 172 new investment options to the Spectrum, Powerwrap, and SMA menus throughout the current financial year.

Spectrum has emerged as a key engine for growth, with the platform successfully leveraging the company’s in-house trading and execution capabilities for alternative assets. The platform recorded $502 million in quarterly net flows, bringing its total FUA to $4.0 billion.

Strengthening Market Leadership in Non-Custodial Administration

Beyond its platform business, Praemium has further solidified its market leadership in non-custodial portfolio administration through its Scope+ offering. Scope+ FUA grew by 28% to $41.5 billion, while the number of portfolios administered rose to 11,969.

This growth is anchored by the successful migration of the Bell Potter Private Wealth business, a multi-year partnership that demonstrates Praemium’s capability to manage large-scale, complex onboarding programs. Furthermore, the firm onboarded three new advice groups to the Scope+ service during the quarter, including clients returning to the platform, suggesting strong competitive appeal for its broader administration capabilities.

Tech Restructure and Strategic Outlook

A significant focus for the company remains the integration of Technotia, which is aimed at accelerating automation and simplifying user workflows. Following the technology division restructure announced in February 2026, Praemium is moving to close its Armenian operations in Q4 FY26. This transition is expected to reduce the annual technology salary cost base by approximately $9 million on a run-rate basis.

While the current fiscal year involves one-off redundancy costs associated with these structural changes, the company expects the full cash flow benefits to materialize from FY27, which should improve operating leverage as platform scale continues to increase. Looking ahead, Praemium remains committed to its strategic priorities: maintaining cost discipline, improving time-to-value for new clients, and refining its superannuation offering to capture future growth.

FAQs

What were the primary drivers of Praemium’s FUA growth in Q3?

The 18% year-on-year growth in total FUA to $73.7 billion was driven by strong adviser demand within the high-net-worth segment, particularly for the Spectrum platform, and the ongoing expansion of the Scope+ non-custodial portfolio administration service.

How is the company managing its technology costs?

Praemium is finalizing a restructure of its technology function following the Technotia merger. This is expected to reduce the annual technology salary cost base by approximately $9 million on a run-rate basis, with the full cash flow benefits anticipated from FY27.

How did the Spectrum platform perform during the quarter?

Spectrum continued its strong growth trajectory with $502 million in quarterly net flows, bringing its total FUA to $4.0 billion. Its performance is supported by increasing utilization of alternative assets and Praemium’s in-house trading capabilities.

What is the status of the Scope+ administration service?

Scope+ remains a core component of Praemium’s growth strategy, with FUA rising to $41.5 billion this quarter. The growth has been aided by the ongoing migration of the Bell Potter Private Wealth business and the onboarding of new advice groups.

What is the outlook for Praemium’s operating leverage?

Praemium expects to realize improved operating leverage as it scales its platforms, benefits from the cost efficiencies of the Technotia integration, and continues to execute its technology roadmap throughout the remainder of 2026.

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