Praemium, Powerwrap ink online agreement

Praemium has signed an agreement with Powerwrap to provide online portfolio administration services (V-Wrap) and separately managed account (SMA) technology for Powerwrap’s proposed fully-consolidated wrap platform.

Until last week, Praemium had an exclusive three-year arrangement with BlackRock Investment Management. Following the expiration of the agreement, Praemium group chief executive officer Arthur Naoumidis said they would like to offer licences for their proprietary technology to different operators in the market. He also said talks with prospective clients did not mean the end of their relationship with BlackRock.

The Powerwrap platform, which will be structured as a registered scheme, will use Praemium’s V-Wrap to offer access to direct equities administration and wholesale managed funds.

Powerwrap has also signed up for Praemium’s SMA technology and new risk-based strategies initially developed for the UK market.

Powerwrap’s chief executive officer, Andrew Varlamos, said Praemium’s technologies were a key part of its proposed platform offering, which was formed to meet adviser and client demands for greater transparency and control over their investments.

Varlamos said “everyone in the industry is seeking more efficiencies as a means of lowering aggregate costs across the value chain”.

Praemium and Powerwrap are yet sign a formal agreement, the finalisation conditional upon Powerwrap obtaining the required Australian financial services licensing, expected to occur in early 2009.