The service was launched to supplement Praemium’s market-leading non-custodial Virtual Managed Account (VMA) solution, currently managing over $100 billion in assets.
Morgan Stanley and Shaw & Partners signed up to the VMA administration service in April 2019 and both of these clients are now live. A total of 10 clients now use the service, comprising over 4,000 portfolios and over $6 billion in FUA. This represents a 15-fold increase since December 2018.
The service offers full administration support and includes mail house, portfolio management and reconciliation of accounts, corporate action elections and processing, billing support and the full annual reporting requirements of our clients.
The administration service is an important addition to Praemium’s Integrated Managed Accounts platform, which offers the most comprehensive range of managed accounts across custodial assets (SMA and IMA*), non-custodial assets (VMA), and the ultimate consolidated reporting view, the Unified Managed Account (UMA).
Praemium CEO Michael Ohanessian stated, “Our Integrated Managed Accounts platform is a game changer in terms of providing transformational efficiencies for advice businesses. Offering admin services for VMA accounts is another step in the evolution of Managed Accounts solutions. It is satisfying to see our deep investment in expanding Praemium’s platform capabilities these past two years also now recognised by the Innovation Award from the Institute of Managed Accounts Professionals (IMAP).
Ohanessian adds “With the ATO reportedly expecting to receive some 20 billion digital transactions in the year ahead, being able to provide clients with fully reconciled portfolios and comprehensive reporting, irrespective of the complexity of the underlying assets, will further simplify the tax reporting burden on advisers and investors. High-quality, accurate reporting will be more critical than ever in this increasingly transparent, digital world.”
*SMA – Separately Managed Account
*IMA – Individually Managed Account