Fidelity International has announced that it will launch its first Separately Managed Account (SMA), working in partnership with Praemium, one of Australia’s largest SMA providers.
The SMA is to be an actively managed Australian equity fund headed by Fidelity’s Kate Howitt. Ms Howitt was ranked one of the top female fund managers in the world by Citywire in 2020.
Fidelity confirmed that its decision to offer an SMA structure was based on the offering’s flexibility and benefits for clients.
“The SMA structure makes sense for the right client because investors own the shares they’re invested in which can offer tax benefits but don’t have administrative burden of investing directly in the stock market,” said Simon Glazier, head of wholesale sales at Fidelity.
“At the same time, they’re benefiting from the expertise and research resources of a professional manager”.
The firm also hopes that the SMA will open up a new channel for clients to gain access to their global research capability, allowing them to build stronger relationships with the investment community.
“Fidelity is uniquely positioned to offer a broad set of services across asset management thanks to the breadth of our business and global footprint,” said Fidelity Australia’s managing director, Alva Devoy.
“By offering these new capabilities, we can develop stronger, deeper relationships with our clients.”
Praemium has hailed the partnership, echoing Ms Devoy’s sentiments.
“Praemium is committed to providing its clients with access to high-quality managers and investment options,” said Damian Cilmi, Praemium’s head of investment managers & governance.
“As one of the largest, most experienced global asset managers, Fidelity International recognises the importance of offering managed account solutions to meet the diversified and growing needs of investors and we are delighted to be their platform of choice for their first SMA”.
The move into the SMA space comes at a time where Fidelity is also looking to expand its ESG offering.
The firm appointed Daniela Jaramillo last month in a newly created position of director, sustainable investing. Her remit is to help integrate sustainability considerations in the investment process.
Fidelity’s move towards sustainable investment was also in focus when Ms Howitt spoke with InvestorDaily earlier this year on the topic of ESG investing.
It is yet to be seen whether the SMA built will incorporate this move towards a more ESG friendly offering.
