29 July, 2022
13 October, 2021
The Insider: Meet the Fund Manager sessions are a great way to hear directly from leading fund managers. They share their approach to investing, favourite companies and their market view for the year ahead.
The Insider: Meet the CEO sessions feature a selection of company leaders who provide a succinct overview of big things their companies are doing.
Household wealth in Australia rose by 35.5% from the start of the COVID-19 pandemic to reach a record $14.9 trillion in March – an opportunity that didn’t go unnoticed by wealth management platform Praemium.
Praemium started out as a software company in 2001, selling its platform to businesses offering financial advice. The platform specialises in reporting for financial services companies, particularly performance reporting and tax reporting.
Armytage Private founder and executive chairman Lee IaFraté featured Praemium as one of his favourite stocks on our Meet the Fund Manager session in July.
“Even the most sceptical, miserable person alive would think that there might be 10% or 15% in this one. We suspect there will be,” Mr IaFraté said.
Praemium competes in the space of helping advisers implement strategies on the advice they provide to their clients. As at October 2021, $170 billion in assets was being managed using the company’s underlying software.
According to Praemium CEO Anthony Wamsteker, who joined us on our Meet the CEOs event in October 2021, most of the assets held by individuals and
families, outside of the home they own and live in, is managed in a non-custodial environment.
“That part of holding and having custody over the asset is not needed for probably the bulk of the assets. That’s where our Virtual Managed Account software becomes the most important part for an adviser in reporting to their client on how their portfolio is performing,” Mr Wamsteker said.
Focused on scaling up in Australia, Praemium acquired Powerwrap in 2020 – a company built on and that uses Praemium’s technology to provide specialised services to high net worth advisers.
“(Combining with Powerwrap) our (net) revenue was up 30% ($65.5 million) and a lot of it cropped to the gross margin (up 15% to $45.8 million),” Mr Wamsteker said.
In December 2021, the company agreed to sell 100% of its international operations in the UK, Jersey, Hong Kong and Dubai to Morningstar to unlock A$65 million and further accelerate its growth trajectory in the Australian platform market.
On why Australia is a focal point for Praemium, Mr Wamsteker said: “The market opportunity is $915 billion held on Australian platforms … over 80% of that is held in older legacy type platforms … the newer challenger platforms are
growing market share very rapidly.
“We survived through the difficulties created by the COVID environment and we did make some strong investments in growth, which allows us to take very strong momentum into the financial year that we’re now in.”
Praemium opened FY23 registering an 18% surge in its share price, albeit after sinking more than 49% over the past 12 months.
Mr IaFraté concluded: “We rate (Praemium) very, very highly and we think it’s a little bit of a sleeper. If you’ve got some spare coin, that’s not a bad one to have.”
Click here to view more videos from Lee IaFraté’s The Insider: Meet the Fund Manager session, or click here to view the full The Insider: Meet the CEOs session.
Reach does not assume responsibility for the accuracy or completeness of any information provided, and the views expressed are not reflective of Reach Markets’ position. Any advice contained within this presentation is general advice and does not consider your personal circumstances, you should consider whether it is appropriate for you.
The information we are giving you is for educational purposes only. “Investing is about understanding your risk” and every time you invest in the share market there is a risk of loss.
Meet the Fund Manager
Upcoming Session
Meet the Manager
Get access to some of Australia’s leading fund managers who share their 3 favourite stocks, investment approach and insights on the market.
Each session includes:
- 3 favourite stock opportunities
- Market views for the year ahead
- Investment strategy and approaches
This is a live and interactive session, where you get the rare opportunity for Q&A with a fund manager. Spots are limited, so secure yours today.
Book into the next session
By clicking submit, I agree to the terms of the Reach Markets Financial Services Guide that includes the Privacy Statement.
The CEOs of all the companies chosen as Fund Manager favourite stocks are invited to present at our Meet the CEO series. Reach does not assume responsibility for the accuracy or completeness of any information provided, and the views expressed are not reflective of Reach Markets position.
Any advice contained within this presentation is general advice and does not consider your personal circumstance, you should consider whether it’s appropriate for you.
The information we are giving you is for educational purposes only. “Investing is about understanding your risk” and every time you invest in the share market there is a risk of loss.