Category: Innovation

Perpetual kicks goals with Mainstream SMA

The Innovation category at the IMAP Managed Account Awards went to Praemium for its ‘Welcome to the Upgrade’ initiative. 

Finalists

IMAP congratulates all the finalists in the Innovation category.

  • BTFG
  • Investum
  • JB Were
  • Nucleus Wealth
  • Praemium
  • Resonant

With its long commitment to developing and advancing the use of managed accounts among advisers and their clients, both here and overseas, it shouldn’t come as any surprise that Praemium took out this year’s IMAP Managed Account Award for Innovation.

This prestigious gong went to Praemium for its ‘Welcome to the Upgrade’ initiative, which formed part of the marketing campaign for its fully integrated managed accounts platform that was rolled out in February this year. 

According to Praemium Head of Product and Marketing, Mat Walker, the key highlight of the initiative was enabling the various forms of managed accounts (including SMAs, IMAs, VMAs, UMAs and MDAs) to be available and accessible on the one integrated technology platform, covering both custodial and non-custodial investment assets.

“To do this meant developing very innovative technology,” Mat says. “For example, in February, we introduced a new adviser portal, which has been a significant value-add for how advisers engage with their clients, as well as how they implement portfolios and managed accounts.”

The technology also allows for complex corporate actions, investment and tax reporting, which are considered to be market leading capabilities.

In addition, Praemium’s ‘upgrade initiative’ also includes an impressive choice of investment options, allowing advice businesses to transform their service offering.

“As an example, we currently have the broadest range of SMA model portfolios available in the market – about 350 options from approximately 80 investment managers. We also provide access to more than 1,000 individually listed and unlisted investments, both domestic and international, on the platform,” Mat says.

Innovative and transformational

As part of its innovation submission, Praemium also highlighted its thought-leadership articles and concept marketing, which supported its upgrade initiative.

“We feel this has helped to contribute to the further education of advisers about managed accounts,” Mat says.

And the IMAP Award judges agreed, rewarding Praemium with the IMAP Managed Account Award for Innovation due to its consistent improvements, which has been demonstrated over a long period, in developing a service that is flexible and meets the needs of a broad range of advice businesses and their clients.

With the continued growth of managed accounts transforming many advice businesses, Mat believes the unique ability for Praemium’s integrated managed account platform to support almost every kind of advice firm, investor and investment, is a clear market differentiator for the Melbourne-based business. 

“And another differentiator is our global presence, where we run managed accounts, particularly SMAs, in other parts of the world,” Mat says.

In fact, Praemium is currently the market leader in Australia for SMAs, with over $9 billion in FUM, including offshore SMAs, and a leader for non-custodial investment reporting, corporate actions and tax management. Praemium currently reports on more than $140 billion in investment assets on behalf of advice firms.

“Our scale enables us to pass through benefits to advisers’ clients. Our unique ability to net equity transactions across our whole FUM is an important benefit we pass on.”

Advancing development

So, in what ways is Praemium advancing the development of managed accounts?

For one thing, it has rolled out a series of thought-leadership articles that have proved popular with advisers and investment professionals alike. And then there are the adviser and investor portals.

“We have spent a lot of time developing adviser and investor portals that enable advisers to engage more effectively with their clients. This is allowing advisers to highlight the transparency and depth of information available in an investor’s account,” Mat says.

“Developments like these are not only helping to advance the understanding of the benefits of managed accounts with advisers, but also with investors, too.” 

But perhaps what the business is most proud of is the innovative technology Praemium has developed that enables advisers to build model portfolios using a vertical build structure.

“This is allowing advisers to realise the many benefits that managed accounts bring in terms of advice efficiency, rather than the traditional wrap platform structure that is more horizontal, where an SMA is just another investment option that is just included in reporting, as opposed to being an overall consolidated investment experience,” he says.

Recognition and vindication

Praemium is a strong supporter of IMAP, particularly in its objective to better educate the industry (and regulators) in its understanding of managed accounts. Therefore, Mat says it means a lot to Praemium to be recognised by IMAP, as well as the judging panel, for this year’s Innovation Award.

“We have invested considerably in our managed accounts service and capability over recent times, and have experienced considerable client and FUM growth as a result. To receive this recognition is vindication of the work we are doing with managed accounts.”

Winning the award also adds to the recognition that Praemium is receiving overseas, having won the ‘International Adviser’ international platform award for its global SMA platform.

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