Praemium dominates SMSFs
By Victoria Young
Monday 11 February 2008
Praemium has become one of Australia's largest self managed super fund (SMSF) platform providers with $11 billion in funds under administration (FUA).
The Australian Securities Exchange-listed financial services group administers 13,200 SMSF portfolios with an average balance SMSF balance of $1 million.
"It's something that surprised us when we saw the impact and the penetration we're having in the market. [Praemium's] the largest administration platform for super funds in Australia," Praemium managing director Arthur Naoumidis said.
"One of our key areas is providing administrative support to accountants and financial planners who administer super funds. This shows the success we've had from very humble beginnings."
Praemium has 3.5 per cent market share of the Australian SMSF space by number and 3.7 per cent in terms of FUA.
The platform provider has a flat fee structure rather than charging a percentage of assets under management like its competitors.
"Praemium is a successful and highly recognised organisation that shows integrity. It is a specialist in the market, like more and more administration firms," Self-Managed Superfunds Professional Association chief executive Andrea Slattery said.
Praemium supplies online portfolio administration services via V-Wrap, market data using its p-Desktop product and separately managed account (SMA) technology to wealth managers, financial planners, accountants, stockbrokers and SMSF administrators.
V-Wrap has over $28.5 billion FUA for 32,000 portfolios and more than 350 client firms, including Asgard Wealth Solutions, Citigroup, Count Financial and Professional Investment Services.
The Praemium SMA has in excess of $323 million in funds under management with more than 65 firms signed up to use it.
According to the Australian Prudential Regulation Authority there were 368,046 SMSF funds with $299.75bn funds under management as at September 30, 2007.
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