New wrap targets SMSFs

Praemium to launch new product for booming market

By Vishal Teckchandani
Mon 28 Feb 2011

The SmartWRAP SMSF will incorporate costs into the fee structure and give planners a choice of administrators.

Financial-services firm Praemium is set to launch a new wrap that caters for self-managed superannuation fund (SMSF) professionals. 

The company's SmartWRAP SMSF offering is a managed investment scheme wrap that will incorporate the administration costs of the SMSF within the fee structure, said Praemium director Warren Gibson.

"The benefit of having that is the ability to have the SMSF sitting on wrap with the administration taken care of'," he said. "This will appeal to financial planners getting into the SMSF space, probably with smaller fund balances."

Planners will be able to choose from a default panel of possibly up to four administrators or pick their own. "So it will either be one of the default or one of your own choosing, and they will receive the fee," he said.

Praemium will charge 0.49 per cent fee, but on a two-tier basis, with a cap for using the wrap.

Gibson said Praemium was developing the product to capitalise on the growing SMSF sector. "We think that sector's going to grow dramatically. We think a lot more financial planners are going to want to get involved in this sector, and that's what this product is all about."

Praemium expects to launch SmartWRAP SMSF in April, when it will also announce the panel of administrators.

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