Platform provider Powerwrap has announced the launch of a new separately managed account model which operates in real-time.
The new model will allow investment managers to run their SMAs in the same way they run other investment offerings, Powerwrap chief executive Cormac Heffernan told InvestorDaily.
“From the fund manager’s point of view, they’re able to run their SMA model in exactly the same way as they run their managed funds, and exactly the same way as they run their institutional mandates,” he said.
Mr Heffernan said managers would be able to put orders in to the market, take them out, set price limits and check an asset’s liquidity from a consolidated book, rather than adjusting the weightings and then “seeing what they get the next day depending on how it was executed”.
“That’s become really important, because as SMAs become much bigger, ironically the liquidity in the market has gone backwards, and therefore having control over the execution has become massively important for fund managers,” he said.
Real-time SMAs could also allow investment managers to offer a “wider range” of assets to potential clients, Mr Heffernan added.
“It will allow fund managers to offer models in asset classes that previously they couldn’t, like small caps and hybrids, and anywhere where there’s a lack of liquidity,” he explained.
Read more:
Shipping finance offering ‘equity-like returns’
BNP Paribas Securities Services signs UN PRI
Australian GDP growth hits four-year high
There is a growing demand for sustainable finance from institutional investors, according to the big four bank. ...
AMP could face further risks according to analysts at Morgan Stanley, with the negative flow trends across the wealth giant expected to cont...
The wealth and trustee arm of MyState, TPT Wealth, has seen a slight increase of 1 per cent during the first quarter of financial year 2021,...
Subscribe to our newsletter
Copyright © 2020 Investor Daily
Get notifications in real-time for staying up to date with content that matters to you.
Read More