Welcome, everyone. Thank you for joining the call for our quarterly update on funds flow and funds under administration. I'm here with David Coulter, and we'll just take you through the high-level overview and some of the detail in the results. Let me start by acknowledging the Traditional Custodians of Country , and pay my respects to their elders, past, present, and emerging, for they hold the memories, traditions, and culture of First Nations people. I'll put up the usual disclaimer there. I won't read through that, but it is in the presentation that is loaded into the ASX website. As I said, David and I will take you through our high-level overview of where we're at in terms of the business strategy, and then some of the detail on the quarterly flows and where we are in terms of annual growth rate.
And then we'll take some questions, which there are some coming through already. Now, this slide on the strategy, we go through this each time we talk. There's, as I've, as many of you have heard me say, there's at least seven significant releases we have to the market. These quarterlies, which there's four a year, of course, the half yearly and full year results, and then the AGM. But each time, we take the opportunity to reiterate what our strategy is and where our focus is in terms of the strategy, in, for two reasons: one is obviously to give an update about how we're going on the key strategic initiatives, but also, in order to reassure shareholders that our strategy is consistent. We're not chopping and changing. It's not tactical, although there are tactical elements.
But really, our strategy is, is a long-term strategy to take advantage of what we're seeing in the market and what we regard as our strengths and capabilities to serve the needs that are emerging in the market. So, on the first thing is two core areas in terms of our product. One is the platform side of our business, and the other is the non-custodial side of the business. And both of those, we regard that we have a leading position in, in some regards. Definitely in non-custody, we are not only leading in terms of the product offering, but we're also leading in terms of the market share that we have in what is a market that is somewhat fragmented.
In some ways, our biggest competitor is back office processors who are using Excel to manage portfolios. So our market share grows there, not just because we've got the best product, but because more and more people are looking for the opportunity to outsource their back office administration on the non-custody side. In terms of the platform, we continue to regard ourselves as having the preeminent product offering for the high net worth segment, and we intend to shore that position up further with the launch of our new IDPS, which is in its final stages. In terms of the operations and making sure that our operations are working well, the big thing that we've done over the last three or four months is get our revenue where it should be for the offering that we have.
We felt we were somewhat under market, and so that became a high priority focus in terms of the change management that we're putting through the business, and we're very pleased that we've launched that into the market. And, whilst this is not a financial presentation, we're sure that, come the full year results release, and the charts that we release associated with that, people will be able to see the fruits of what we've delivered there. In terms of service, we have said consistently that whilst our service is adequate for what we do, it's not where we aspire it to be.
As a high net worth platform, where we're expecting to be dealing with high net worth clients and their advisors, we expect that we're dealing with people who have very high expectations on the service that they receive, just as they get good service in everything else that they're doing in their lives. And so we aspire to have the highest standard of service. It's a big objective. It's a big aspiration, because the complexity of what we're dealing with is more than any other platform. Some of the assets that high net worth people wanna hold are more complex to administer. And so we not only wanna deal with the complexity, but continue to do that in a way that provides the best-in-class service. In terms of superannuation, again, we're very happy with the progress that we're making.
I must say, even though I'm gonna talk about OneVue in a moment, that one of the good things we got with the OneVue business, you've heard me say again, we not only got a good client base and a good business, but we also got some very good people in OneVue superannuation field, so we're using that expertise to build out what we regard as the potential to significantly uplift our superannuation offering. It's probably been a bit of a neglected area for us in the past, because a lot of our funds under administration come from self-managed super, and self-managed super is, by its definition, self-managed. So it's not really for the platform provider to do that much in terms of the superannuation.
But more and more, even high net worth clients are reliant on the superannuation system, and the retail super offering is a very important component of that. So we regard that as a very big opportunity for us, and the ongoing growth in superannuation, and the desire for people to have a superannuation offering that reflects high net worth characteristics is a big opportunity for us. And as I say, the capability that we've got with OneVue as well as Praemium gives us the foundation to build on that. And finally, you know, we have been on the lookout for acquisitions over the past two or three years since we divested the international business. David and I, and others in our team, have probably looked at circa 30-40 opportunities in some detail. That's not just discarding them straight away.
OneVue is the one that stacked up and was clearly the most attractive opportunity for us, and we've walked away from all of the others. Some of them are probably still on the back burner, but we're very happy to have been able to focus on OneVue and what we're doing there. Now, I'm gonna hand over to David in terms of the flow update, but I will just make this one overall comment. When you look at the flows, and David will talk about it in more detail than me, but there's the headline number, and then there's the underlying state of the business. Now, the headline number is adequate from our point of view, especially year to date.
We continue to get the sort of funds flow that allows us to deliver on an expectation of double-digit growth in our business. And the double-digit growth we talk about revenue growth, but obviously, the basis of the revenue growth is the size of the non-custody and custody business that we're administering. And we're getting double-digit growth in the assets under administration, both organically and through the OneVue acquisition. So we're happy with the underlying. There has been some headwinds that have knocked about a little bit the headline number. We are conscious of that, but it's not causing us any great distress in terms of our aspiration to grow the business. And some of the steps that we've taken, in particular, the launch to the new IDPS, gives us high level of confidence that we can continue to aspire...
Get double-digit growth, revenue growth. But I'll hand over to David to talk in a bit more detail. Thanks, David.
Great. Thanks very much, Anthony. Look, all the numbers are on here, of course, presented in bullet point form, and at the end of the presentation, you have the detailed tables that form part of the ASX release, which also gives a separate amount of color, and we're trying to convey it, of course, today in how we present the results to you. The comparisons here on this net flows and FUA slide are to March 2024. The ASX release itself goes into a little more detail on what's happened over the course of the year. But in summary, the SMA continues to perform extremely well. It's a continual source of net funds inflow for Praemium.
The most recent quarters had a conventional seasonal fluctuation in as much as the inflows have been very strong, but there's been a higher degree of pension outflow as people level up for the required pension, drawdowns that they have to take relative to their, say, self-managed super fund and the rules that apply to those. And we've seen very often in the high net worth space, there's a rush in the month of June to draw down to match up to your pension requirements, and that's indeed happened to the SMA in this particular quarter, most prominently in June, actually, when we look at the numbers internally. Powerwrap, we've been through on at least what the last call and several calls to, say, shareholders and other forums.
What's happening in Powerwrap is a repeat, albeit there's some volatility within quarters, of the impact of advisors from a particular licensee departing, moving to essentially a closed shop over at LGT Crestone, where they're taking their clients across to an analog solution. We stress, and we've done a lot of work to determine whether or not there's anything that is integrally part of Powerwrap that's causing this, and absolutely the word is that that is not the case. Powerwrap is a great solution for the ultra-high net worth, particularly within that licensee, and remains so. Indeed, we've seen within certain clients that formerly were attached to these departed advisors, we're seeing now the inflow is returning.
So it's not as though every single client for these advisors is destined to exit the Escala license, and they were seeing some reasonable green shoots, albeit this quarter's been a high level of outflow from the Powerwrap solution, principally as a result of the departed advisors. I'd note also that if you look at the gross inflow numbers, and they're on the detailed slide again, Powerwrap's been remarkably consistent in the amount of inflow it's been able to attract. So this is an outflow story that is not to do with Powerwrap as a solution, it's to do with the ties we have to a particular client or advisory group. OneVue has formed part of our stats for the first time this quarter, having been acquired on the fifteenth of April.
The level of outflow in OneVue is reasonably consistent with the level of outflow we'd observed when we did the detailed due diligence before acquisition. So it comes as no surprise to us. FUA, as to what impact this has, the earn outs for the acquisition are measured on organic growth or organic decline only, no market movement. So in terms of impact on earn out, that will reduce the earn out pro rata basis from all the stats that we've put to the market previously. And maybe I should have highlighted this first, but I'm going in the order that we've got it on the slide. VMAAS, as a solution, is up 8% in the quarter alone, so that continues to outperform even our best expectations, really, and the market overall.
We're the clear leader in the provision of non-custodial, and we have some detail on that on the following slide. Again, the comparisons here are to 31 March. The portfolio's numbers are up significantly in VMaaS. The portfolio numbers are up significantly in VMaaS, and as I referred to earlier, the FUA is up significantly in VMaaS for the quarter. The more interesting stat here is now, for the course of the year, we've signed up 41 new client firms, which I think is one of the best years we've had. And the signing of Mercer was particularly noteworthy over the course of the year, having introduced 400 new portfolios, but also lined us up with around AUD 4 billion in FUA. So we're the clear market leader, I believe, in this part of the market.
There's no one anywhere near our FUA numbers, and certainly no one anywhere near our portfolio numbers, which is where the revenue is generated for this particular service. As I referred to earlier, here are the detailed tables. They are simply a replication of what is in the ASX release in more detail. They give you everything for the quarters. As I referred to earlier, noteworthy is the level of inflow on Powerwrap being remarkably consistent, and also the remarkably consistent net flow performance in the flagship SMA product. And OneVue, having appeared in the statistics for the first time this quarter, given the date of acquisition. So with that, that's the summary form. We are getting questions that we can see as presenters. As we went last time, what we'll try and do is not read out every question and then answer it.
I feel like we'll probably get questions that have a very similar flavor to them. The first one we've got here is... Won't even read out who it is from, necessarily, but this one's from Cameron Brown, asking us about the intention to pay dividends and be updated on that. As Anthony noted at the start of the presentation, there's 7 significant, data points to the market. We're providing our results on the 26th of August, and that result is not yet audited, so I think it'd be more germane to talk about dividends when we get to that. We do have a dividend payment policy that's been adopted by the board to pay at a range of NPAT, but it's a policy prescription, not necessarily a rigid, floor and ceiling on the amount of dividends paid.
We have stated before, I'll put as a general principle, that our preference is to pay fully franked dividends where we can return funds to shareholders, and the buyback of shares being the second order priority, which we've engaged in over the course of the year and brought close to AUD 10 million in the most recent half, which is all, of course, published on ASX. The second question concerns the product lineup, so I'll let Anthony answer that one.
Yeah, thanks. For the question on with the launch of the next generation IDPS, we would have four platform or schemes in the market, being as well as the next gen IDPS, we'll have Powerwrap, the Praemium Managed Account scheme , and the OneVue IDPS. And that's right, and we are aware of it. The one thing I think it's important for everyone to understand in terms of the consolidation, we will consolidate down, and we will have a much smaller range of schemes, making sure that we don't lose any functionality for the clients involved. But that's not where the synergies are for us. The real synergy for us is running those schemes and running our clients on a single technology stack, and that's our highest priority.
So we're realizing the synergies from getting onto a single technology stack, including OneVue, including the next generation IDPS, including Powerwrap. That's where we've got the synergies already realized, especially in the case of Powerwrap, but going forward on the next gen IDPS as well, and OneVue. So that's the most important game in our world. But in addition to that, there is some synergy in reducing the number of legal schemes. So that's a second order priority, and we will be focused on that. But in addition to the platforms, we also run the non-custodial service on the same technology stack. So having the single technology stack is the priority for us, and we're able to do that because of the modular nature of the way we've set up our IT architecture.
I think it's fair to reflect on that sort of streamlining of our services means we will focus again on the number of licenses we have and the amount of capital we have to hold against them over the course of the 2025 financial year. The acquisition of OneVue and back and forth with ASIC takes some time, so we did defer our initial collapsing of, say, Powerwrap and the Praemium SMA, because we knew inevitably we'd be bringing OneVue on. We knew that, not necessarily everybody else. And now that OneVue's joined the stable of companies, we'll be able to focus our efforts over the course of FY 2025 on releasing... Well, maybe not releasing the capital, but certainly lowering the capital requirements associated with the number of licenses we have.
There's another question here, more on the timing of the IDPS rollout and whether or not all our clients will have access to it or whether it be gradually rolled out. Again, I think that's one for you, Anthony.
Yeah, good question. It will be basically available to everyone relatively early on. Having said that, we will work with one or two clients to be the earliest transition to that, and so obviously, when we go live, you know, we will have made sure that that's delivering on our aspiration, not only for the product, but for the service standards. And so there'll be a little bit of bringing people on in some order, so that we can deliver on the service standards that we aspire to. The other thing, again, some of you have heard me say, "What are the big things that drive your sales?" And product is one of the big three or four.
If you look at the big four, the way we look at it, product, brand is another, the service that we're delivering, and the pricing are probably the four highest categories of drivers of sales and retention. We're aware that our brand... You know, we've never invested as much in our brand as some other platforms, and that's appropriate. We're a smaller platform than many of our competitors. But we will be rolling out the new IDPS, not just as a new product, and we believe the best product in the market for net worth advisors and their clients, but we'll be making an effort to do that in a very high-profile way and lift our brand as part of that approach.
Thanks. There's a question here on the quantum of price increases that we announced on 1 April, or announced before that, I should say, and have put to our SMA products from 1 April. What I would say on that is that the emphasis of the price increase was on trading and execution, rather than a more predictable, straight-out administration fees basis points to FUA. So it has some volatility in and of itself, depending on trading volumes. What we will do when we announce our results on the 26th of August is have the very detailed revenue basis points to FUA graphs that we produce for SMA, Powerwrap, and indeed, because we now own it, OneVue. So you will see transparently the impact of those price increases in the last quarter of the financial year.
It's not appropriate to comment on them necessarily now, but they have been beneficial to the group overall, of course. But they're not predictable month by month going forward, given that emphasis or reliance on trading and execution. And then there is also now a question on, and this is one for Anthony, I gather, as well: comment on how much more of the outflows we expect from the advisor group with the departing advisors. Now, we have made reference to that in the ASX release, but Anthony, any other-
Yeah, yeah. No, just in the ASX release, I appreciate people might not have had the chance to read through all of that, but we've talked about, the departed advisor flow is now up to about AUD 1 billion. This is consistent with what we've said in the past. You know, each quarter, we've said we're seeing, a reasonably steady outflow from the departed advisors quarter on quarter. It's something like AUD 250 million a quarter, so with four quarters, that's now hit AUD 1 billion. We've said we, based on the rate of flow, you know, we think it's prudent to think that's probably looks like it could have another six months to run. But, it's, as I've also said, there's a bit of crystal ball gazing there.
You know, there's a lot of action and reaction, if you like, amongst the advice firms trying to win the clients into the particular advice firm, and that's not always easy to predict. So we've made our best effort to say, "Look, the rate of flow seems to be relatively steady at the moment, about AUD 250 million each quarter, AUD 1 billion over the year, and it looks like it could have another six months or so to run.
Thanks. Look, we've been asked another question on the pool of cash holdings through the quarter and what that looks like relative to peers. My comment there is that it's not an allocation decision, necessarily, that we have any control over how much cash is retained within a portfolio for a particular investor. That the SMA is up slightly, Powerwrap is down, and OneVue, in fact, has a higher allocation to cash than we've observed in our other products, is mostly the outcome of the type of investor that is best suited to those products. If you think about an ultra-high net worth, allocating more proportionately to interest or, sorry, yielding investments, perhaps, or to equities or to alternatives, the SMA being still high net worth, but more towards the mass affluent segment of the market.
And that being potentially an outcome from the way that they, again, need to liberate cash to enact a drawdown later or looking perhaps to liberate some assets to trade. They're not decisions that we have any real insight into. And we know that we earn a reasonable margin if it's held in that cash, but principally, that cash is held to enable that portfolio to trade. And then with OneVue, I've talked to the OneVue management team, actually, about that higher allocation to cash, and that's an observation made again because of the client segment that the product is marketed to. Generally speaking, they'll have a higher allocation to cash because they have less of a hands-on approach with the advisor, essentially, is the view that's taken there.
So the more that you interact with your advisor, the more active you are in trading your portfolio, the less likely you are to be making cash contributions and leaving them there untraded. Where the OneVue solution, the advisors are not necessarily as active as ultra-high net worth or high net worth advisors, albeit there are some within that solution. So it's a long-winded answer to say, I can't really predict one way or the other. I, I don't see a trend one way or the other in the pool of cash, but the outcomes are as we publish them, of course. And we've got a question on OneVue, in fact, and just what the prospects for that FUA are over time.
Yeah, good question. And, I think for those of you who are closer to the business might recall that there is an earn-out on that business when we bought it, and the earn-out has upside potential for increasing in FUA. So when we acquired that business, both the seller and us, as the buyer of that business, felt there was some potential upside, and we're still of that view that there's some potential upside. And what does that mean? There's upside, partly from the existing clients, say, on balance, you know, there's 19 clients overall, and they're all growing their business and looking to grow their business further.
There is some of the client base where we don't have all of the FUA, their multi-platform strategy, and there's some money with other platforms, and we feel there's some upside there. We continue to have that view, and we're running the client relationships accordingly. But at this stage, what we've seen in the first quarter of our ownership is relative stability in the FUA, and that's pleasing for now. But we are turning our mind to the growth opportunities inherent in that client base. In part, as you would anticipate, the clients of the OneVue solution have got good relationships with the service people, the client service people that they deal with.
But they're also now conscious that we're migrating to the Praemium tech stack , and so there's a little bit of wait and see. How that works out for the existing FUA I've got. Make sure that you deliver on your promises there, and then there could be more FUA down the track once we've successfully migrated.
Thanks. We don't have any more questions coming through the portal, so we might wrap it up there. Thanks very much for those who registered and have signed in and listened to the presentation. On the ASX release, again, there's a contact number for either me or Anthony, and if you do have questions we didn't think to answer in this forum, but that you would like to have answered, you are, of course, free to ring either of us on that number. Any closing comments, Anthony?
No. I just- I'll close by saying thanks to David and his team. I'm sure everyone who is a shareholder in the business would like me to say that David runs a pretty lean and mean team, which he does. It's, it's tremendous how much output we get out of a relatively small team, including these releases. I think we're very transparent with the market. I think we're very open. We certainly want to be, but we do that with a pretty modest-sized team as well, which is good for keeping our margins where we want them to be. So thanks, David, to you and your team, and the transparency you give to the market, but without a very extensive investor relations team. That's pretty much you, so well done.
Thanks very much. Okay, well, we'll be signing off. As I said, contact on that number if you do have any follow-up questions. Thanks for your attendance.
Thanks, everyone.