Platform provider launches SMA solution



Platform provider, Powerwrap, has launched its new separately managed account (SMA) solution, which is expected help managers make timely investment decisions and capitalise in a more efficient way on market movements.
The new Powerwrap SMA would replace daily portfolio rebalancing with real-time, allowing managers to be more responsive to current market conditions.
The SMAs would also now be available to average investors, with the ability to invest at least $20,000 per model, against the previous years when they were traditionally reserved for high net worth individuals with access to minimum investments of $500,000.
According to Powerwrap, the additional asset classes would also allow for an exposure to direct international markets, an area of increasing interest to investors.
Chief executive of Powerwrap, Cormac Heffernan, said: "As SMAs have grown and liquidity has deteriorated, model managers need a greater level of control over the trading experience in order to maximise their performance, particularly in asset classes such as small caps and hybrids."
"The ability of Powerwrap's SMAs to transact in real-time allows model managers to expand their investment universe knowing that they can act quickly.
"Next-generation SMAs will remove the roadblocks associated with traditional SMAs, making these investment strategies even more powerful."
Recommended for you
Retailisation of private markets such as evergreen funds may seem like appealing options for wholesale and retail investors, but providers risk undermining trust if their products are unclear.
Ethical investment manager Australian Ethical has seen its funds under management rise by a third over FY25 to close out the year at $13.9 billion.
BlackRock Australia’s head of intermediary distribution James Waterworth has taken up a new distribution role at an alternative asset manager, while Antipodes has hired a distribution director.
BlackRock’s iShares ETFs have reported a record first half for inflows, gaining US$192 billion in the past six months, to see overall ETF assets under management rise to US$4.7 trillion as it launches its first active ETF in Australia.