Managed accounts providers began to supercharge their products and capabilities driven by technology solutions that really stepped up a notch. By late in 2006 managed accounts were emerging as potentially the biggest influence on investment management and distribution for 2007.
According to Arthur Naoumidis, managing director of managed account provider Praemium Portfolio Services, “The reasons are just so compelling.” Indeed, with Praemium administering $15 billion, if they were a regular platform they would already be toe-to-toe with AXA.
The key to managed accounts is their ability to manage direct equities through a platform-like framework, offer individually tailored tax management and look through managed funds.
As the reach of managed accounts grew towards the middle of the year and billions of dollars began migrating their way, Praemium listed on the Australian Stock Exchange as part of an $18 million plus capital raising. Not long after a new association body, the Institute of Managed Account Providers (IMAP), was formed as a voice for providers and a forum to grow the sector.
“We all face the same tax issues, IT issues and so on, so IMAP is really just a forum to talk about our experiences regarding the methodologies,” Tracy Byrne, associate director of managed accounts provider Direct Portfolio Services, said.