Following a tender process, Praemium’s international SMAs will be offered through JP Morgan’s custodial platform, as well as access to JP Morgan’s “research product, and sales and trading execution via the firm’s equities business”, a spokesperson said.
JP Morgan Australia and New Zealand head of client relationships and sales, custody fund services Bryan Gray said JP Morgan’s custody businesses, technology platforms and expertise would “deliver significant efficiencies” to Praemium.
“To ensure Praemium has a distinct competitive advantage as it grows its offering, it will access our strategy, economics, fixed income, equities and foreign exchange research and be able to view the pricing transparency of equities and custody records through our online platform, JP Morgan Markets,” Mr Gray said.
Praemium chief executive Michael Ohanessian said he was delighted to partner with JP Morgan and was confident the firm would be able to provide the required services.
“Our Australian SMA is the market leader with a wide investment choice of local assets,” he said.
“Adding international securities is an important next step in the evolution of our leading proposition.
“Fortunately, Praemium already applies corporate actions and accurate tax treatments to over 3,500 international securities enhancing the value proposition for our clients.”
As of yesterday, funds under administration of Praemium’s international business reached $2.49 billion following “record inflows” of $1 billion FUA at the September 2017 quarter, the spokesperson said.