Australian firm Praemium has received FSA approval to bring its fund structure to the UK, which comb...
Australian firm Praemium has received FSA approval to bring its fund structure to the UK, which combines elements of a traditional unit trust and a platform.
The Smartfund service will allow intermediaries to white label funds at lower costs as Praemium takes on the admin burden.
Smartfund is an adaptation of the Separately Managed Account (SMA) concept already operating in the US and Australia.
Under the system, Praemium is responsible for the administration and operation of the fund while appointing one or several investment managers, as instructed by the adviser, to run the money.
Sales director John Martin said: "Using the Smartfund structure, distribution firms are able to create their own funds to build assets without taking on the role of fund or investment manager."
Advisers can also view the underlying holdings, valuations, and performance of their portfolio online and use the system to create Fofs, multi-manager products and personalised lifestyle vehicles.
The structure could benefit discretionary managers who want to reduce the cost and time of putting together multiple portfolios and boutiques without their own distribution networks.
In Australia, there are 70 investment models available from more than 15 providers using the system and Martin expects to be launching products with UK intermediaries in the coming weeks.
