Praemium enters services agreement with Mercer
Praemium has announced a new administration services agreement with Mercer, with the platform initially hosting close to 400 Mercer client portfolios.
The agreement looks to utilise Praemium’s virtual managed account (VMA) solution, which currently hosts more than 60,000 separate portfolios, and administration services (VMAAS) which supports over $24 billion in funds under administration.
“The Praemium and Mercer teams have constructed a market-leading solution for their high-net-worth clients,” announced Praemium’s chief executive, Anthony Wamsteker.
Continuing, he said: “We are very grateful to have had the opportunity to collaborate with Mercer, a trusted expert in investments with significant global capabilities. Mercer has been an exemplary partner and we look forward to a strong relationship with them.”
In the latest Advising Australians report from Praemium and Investment Trends, it said 45,000 individuals entered the bracket that caused total investable assets to rise dramatically from $560 billion in 2022 to $700 billion.
This compared to assets consistently hovering between $530 billion–$590 billion since 2019.
According to Recep Peker, founder of platform research service SuitabilityHub, the high net worth (HNW) space is particularly topical as advisers move away from smaller clients and towards wealthier ones.
As the cost to provide financial advice has increased, so has the wealth of potential clients, he explained.
“The end adviser more and more is serving a HNW client base, and what worked for them as IFAs previously won’t work for them for wealthier clients, and platforms are increasingly focusing on that,” he told Money Management.
“It is not only about platform functionality; most of them are fully functioning already. It is about finding the right platform that meets the needs of your clients and your business.”