Consumer trust isn’t something to be taken for granted, but reports from the UK, US and here at home are all pointing towards an uplift in trust levels around financial advice, which can only be a welcome development.
There are significant tailwinds behind the financial advice industry at the moment, but some major obstacles are still preventing advice practices from taking advantage of surging demand according to a new study from CFS.
Another record quarter for Praemium
Praemium (ASX:PPS) shares are up almost 4% at the time of writing following the announcement of strong growth during the second quarter. The platform recorded funds under administration of $49bn with net inflows up 12% on the same quarter last year and has closed the gap with Netwealth’s $50bn.
Key results for the second quarter ending December 31 include:
- Quarterly net inflows of $1.25 billion, including $690 million into separately managed accounts (SMAs)
- Annual inflows of $4.9 billion over 2021, an 87% improvement on 2020
- FUA of $49.0 billion, a 43% increase year-on-year (YoY)
The platform has also agreed to sell its entire operations in UK, Jersey, Hong Kong and Dubai International to Morningstar for $66.68m. This will allow the platform to re-focus its core operations on the Australian platform market. Its international business has been a drag and operates at a scale disadvantage to its key competitors.
Praemium CEO Anthony Wamsteker said, “We are delighted that Morningstar, a global firm of outstanding stature has chosen to acquire our International Business. While enjoying strong sales momentum and technology leadership, the International Business has been operating at a scale disadvantage to its key competitors.”
Morningstar will bring its global footprint and investment scale to better serve the interests of international clients and better advance the career opportunities of our international employees.
