Praemium International

An independent review by our team of experts.

Review summary

Praemium International

Established in Australia in 2001, Praemium is used by financial advisers and investment managers to manage or administer over A$100 billion, or £59 billion worth of investments across 300,000 accounts.

Praemium provides investment platforms, portfolio administration and CRM solutions.  The company has offices in Australia, the UK, Jersey, Armenia and Hong Kong.

Praemium launched its services into the UK market in 2008, where it is now one of the fastest growing discretionary platforms available.  In the UK the Praemium group is regulated by the Financial Conduct Authority.

Overview

Praemium International provides services to a wide range of jurisdictions, including Asia, the Middle East and beyond.  The firms cloud-based offshore platform serves the global expat investor community.  Based in Jersey, the international platform accommodates worldwide currencies and provides access to a wide range of assets.

The platform won its category at the inaugural International Adviser Product and Service awards 2016.

Any tradeable and liquid investment can be held on the platform by discretionary managers including: collectives; equities; ETFs; bonds and fixed-term deposits.

Investment models (proportion of your total investment attributed to each asset class) can be manipulated fairly easily online.  A history of all changes is stored for compliance and audit.

Praemium’s Smartfunds are very much angled at advisers (with the option, even, of applying their own branding and pricing).

Platform costs start at 0.48%.

The pros

  • Australian based
  • Large business
  • Good technology
  • Experienced support team

The cons

  • Pays commission to IFAs
  • Internal funds are multi-asset
FAQs
What is Praemium International's Smartfund?

The Smartfund range from Praemium: 

Smartfund 80% Protected

For those who prefer more security for their investments, Praemium offer a capital-protected range.

The funds are made up of two parts: the protection component provided by Morgan Stanley, and the risk-graded strategy managed by Smartim.

Both funds are designed to allow you to grow your capital, but the investment journey will be different for each fund as markets rise and fall.

Investing in Smartfund may afford you a slightly better return in the long term whilst an investment in Smartfund 80% Protected will protect you from the worst of the stock market waves along the way.

You choose which is the right route for you.

What are the main risks with Praemium's Smartfund range?

An investment in any of the Smartfunds carries a number of investment considerations and risks.

Here's a summary: -

Risk of partial loss of capital, market risk, currency risk and counterparty risk.

• Smartfund 80% Protected - offers 80% capital protection, therefore in extreme market conditions the value of your investment can go down by 20%.

• Morgan Stanley provides the protection component of Smartfund 80% Protected and acts as counterparty to the fund, so if Morgan Stanley becomes insolvent, the protection component may fail.

• The value of each Smartfund may be affected by various market risks including interest rate risk, inflation risk, exchange rate risk and the risk that the strategy managed by Smartim will under-perform its benchmark.

• Fundlogic SAS will seek to hedge the share classes of the funds to counteract the impact of currency fluctuations. In extreme situations the investment manager may not be successful in protecting against all exchange-rate risk, which may result in the capital protection, of Smartfund 80% Protected, being less than 80% of the NAV for the USD and EUR share classes.

Customer reviews
White label confusion

I had no idea who was managing my money - I ended up in a white labelled mess.

I dug in and found Praemium - I dug again and didn't like what I found.

For a start I don't trust a company with lots of dead links on its site to care about my money...small bugbear but...

Expert verdict
Expert Assessment of Praemium International

Our verdict is that this platform is expensive and opaque.  You cannot always tell the total costs of the advice you are receiving, and for this reason we would not recommend it.

If you are an existing investor with Praemium International, we recommend you have a free, no obligation X-Ray Review™ conducted to find out the charges, access and terms applicable.

“Thank you AES International for helping me and my family with your low cost no-nonsense approach. It is refreshing!”

Kristian Petersson

“With this sort of service you also expect to be paying very high fees, but it’s just not the case. I would definitely recommend AES.”

Jake van den Dries

“In the short time that I’ve been using AES I’ve made nearly ten thousand pounds and couldn’t be happier!”

Jackie Pym

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