BlackRock Investment Management Australia has confirmed it is reviewing its separately-managed account (SMA) offering, amid growing speculation it might offload the division.
"BlackRock Australia confirms that there is an ongoing review of its Customised Portfolio Services (CPS) business," a BlackRock spokesperson told InvestorDaily.
"Due to confidentiality restrictions, we cannot disclose any further information at this stage."
Late last month, InvestorDaily reported Praemium chief executive Michael Ohanessian would not comment on speculation Praemium was the frontrunner to purchase the BlackRock SMA business.
"Blackrock is a partner of ours; we have been in partnership with them for seven years. We're very comfortable with the growth of that SMA and our relationship with BlackRock is very good," Ohanessian said at the time.
In Australia, Praemium's SMA technology is used by BlackRock Australia for CPS, which was launched in August 2005.
In addition, former BlackRock executives Cormac Heffernan and Maurice O'Shannassy joined Powerwrap at the end of May.
Heffernan, who stepped into the role of chief executive, said he was happy with Powerwrap's organic growth plans and was unaware of whether the CPS business was for sale.
