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SMA platform demand on the rise

Separately managed accounts (SMAs) are growing in popularity amongst planners because of the efficiencies they provide, claims Praemium as the company announced new model portfolios were added to its SMA platform.

The appeal of SMAs are growing because of their ability to connect specialist investment managers and financial planners in a “much tougher market” than several years ago, Andrew Varlamos, commercial director of Praemium told ifa.

Varlamos also said he believes SMA platforms will become more mainstream, despite being regarded as “relatively peripheral boutique offerings” to date, as Praemium gets closer to $1bn in funds under administration.

His comments come in light of Praemium announcing the addition of nine new model portfolios to its SMA investment administration platform, the Customised Portfolio Service, adding to the approximately 100 existing models on the platform.

The SMA platform enables advisers to give their clients professionally managed equities portfolios while Praemium takes care of the execution and administration, according to the announcement.

Stockbroking firm JBWere has added three models to the Praemium platform and said it is being recognised by advisers as a way they can obtain investment management expertise without needing to deal with compliance and administration associated with trading for individual accounts.