Expand platform doubles SMAs
Wrap platform Expand has announced it has doubled the number of separately managed accounts (SMAs) available for advisers on the platform.
Five new investment managers have been added to the Expand Extra platform in the form of BlackRock, DNR Capital, Elston, Lonsec and Zenith.
This brings the total number of managers on the menu to 12, with 64 SMAs across multi-asset and single sector options.
Its core offering – Expand Essential – now also includes MLC managed accounts from MLC Asset Management.
The firm said the decision had been made as SMAs were being continually sought by financial advisers to enhance their advice offering and achieve better client outcomes. Among the reasons for this are the technological developments, competitive pricing, and ability to save on brokerage fees offered by SMAs.
It has also seen five licensees opt to build their own SMAs on the platform to provide their clients with their own customised solutions.
Insignia Financial general manager for wrap solutions and product integration, Cable Rickard, said: “These additional SMAs from leading investment managers complement Expand’s existing managed account capability and provide more investment choice and flexibility for licensees, advisers and clients.
“The expanded SMA menu allows advisers and licensee groups to efficiently provide high-quality investment solutions for clients.
“The continued growth of Expand’s offering, driven by our proprietary technology, demonstrates our commitment to providing ongoing enhancements to both our platform and products to deliver investment solutions with greater efficiencies, lower cost and better outcomes.”
Since its launch in 2019, Expand has over $75 billion in total funds under administration and 210,000 clients. Earlier this year, parent company Insignia Financial completed a migration in which 94,000 client accounts worth $38.6 billion migrated over from MLC Wrap, MLC Navigator and associated offerings to Expand.
According to the Institute of Managed Account Professionals’ latest FUM census in March, managed accounts were approaching $200 billion
The organisation’s census, which collects data from 46 organisations ranging from large platforms to individual licensees, said FUM in the six months to 31 December rose from $161 billion to $194 billion, a rise of 20.4 per cent. This was attributed to growth from strong inflows of $15 billion and positive market gains.
Breaking it down by product type, separately managed accounts (SMAs) and managed investment schemes (MIS) had $108.8 billion, managed discretionary accounts (MDAs) had $61.6 billion, and other services accounted for $24.3 billion.
AUTHOR
Laura Dew
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