February 17 2010: Powerwrap announces the launch of its new direct equities administration service

Australian advisers are increasingly offering clients direct equities as part of comprehensive portfolios, particularly for SMSF clients.  These clients want independent advice with accountant-grade tax management and reporting that is also time and cost efficient. Advisers now require more seamless and cost effective administration with reliable research to support them in the management of their client equity portfolios.
Today, the investment administration provider, Powerwrap Limited, announced the launch of its new Direct Equities Administration Service that delivers advanced administration support to meet the evolved needs of advisers and their clients.
Why would advisers use this service?
Powerwrap Equities Administrator handles all aspects of equities administration, and is ideal for advisers who want to take a proactive approach to manage client equity portfolios, but don't want the associated administration and corporate actions paperwork.
Based on advanced technology developed by Praemium, Powerwrap offers the industry's most advanced and accurate corporate actions processing and accountant-grade tax reporting.
Launched in conjunction with Morgan Stanley Smith Barney providing equities execution and research support for advisers, Powerwrap Equities Administrator:
  • Delivers the most sophisticated, accountant-grade tax management and reporting functionality available in the Australian market;
  • Is fully integrated with the Powerwrap Investment Account platform;
  • Offers investors individual HINs, allowing full participation in corporate actions such as rights issues, DRPs and buy backs;
  • Provides full corporate actions reconstruction functionality;
  • Integrates with Australia's leading SMSF software providers - BGL and APS Desktop Super;
  • Is offered by Powerwrap who are independent of any product provider; and
  • Is more cost effective than existing platforms.
Powerwrap CEO, Mr. Andrew Varlamos, said: "We have received consistent feedback from advisers that they want more control and flexibility over the management of client equity portfolios.  Whilst wraps are logical structures for managed funds administration, they are less satisfactory for equities on a number of levels.  Our approach plays to the strengths of both structures, providing advisers a more efficient, integrated solution."
Morgan Stanley Smith Barney Senior Vice President, Martyn Rose, said that "Our partnership with Powerwrap will enable advisers and their clients to receive a seamless equities experience. We have been working with Powerwrap and their technology partner, Praemium, for some time to develop a solution that would meet the evolved needs of advisers and their clients."
"Powerwrap Equities Administrator has been designed to sit seamlessly alongside the Powerwrap investment platform, providing advisers with a complete administration service and tax management functionality not available from legacy platform providers." Mr Varlamos said.

October 8 2009: Australian Financial Services becomes first national dealer group to sign with Powerwrap

Investment administration provider Powerwrap Limited today announced a new milestone with the signing of leading national dealer group, Australian Financial Services (AFS).
AFS, with FUA of $5,500m, 222 advisers and sustained continual growth, is the first national dealer group to approve the Powerwrap platform and it marks the second agreement for Powerwrap in a fortnight.
The Powerwrap model, built on Praemium Limited's proprietary V-Wrap and SMA technologies, is an industry solution for financial planning practices to achieve business efficiencies by using modern investment administration and tax management functions not available from traditional legacy platform providers.
In the current market, in view of legislative changes challenging the advice industry, advisers will need an efficient business model and better offer for their clients.
AFS ranks among the Top 20 dealer groups in Australia according to Morningstar Media.
Powerwrap CEO, Mr Andrew Varlamos, said: "We are very excited about having a quality, forward thinking dealer group like AFS on board"
"AFS has been a stand-out dealer group in Australia for some time, leading the way in practice development and innovation with initiatives such as their Boards of Advice for practice management and their support of managed accounts.
"They have the third highest number of CFP's in the top 20 dealer groups and in that category they are the only dealer group 100% owned by its advisers," Mr Varlamos said.
Group CEO of Praemium, Mr Arthur Naoumidis, said the Powerwrap agreement with AFS had wide implications for the advisory marketplace.
"AFS's decision to approve Powerwrap vindicates our belief that technology-led product development will dominate the market going forward.
"AFS will clearly become the dealer group of choice for those financial planners wishing to future proof their business", he said.
AFS CEO and Managing Director, Mr Peter Daly, said signing with Powerwrap reflected his group's belief in seeking the best so as to benefit clients.
"AFS Group is committed to building its marketplace reputation and success by supporting its practices with innovative products, adapting and managing change, building flexible and robust business models, streamline internal processes and providing the highest standards of client service and support", Mr Daly said.

September 29 2009:  Leading Melbourne financial planning firm chooses Powerwrap Limited over major providers to administer $1.4Bn client assets

Australia's financial planning industry has taken a significant step today with Melbourne-based financial planning practice, Lateral Thinking, choosing Powerwrap as the preferred platform for its $1.4 billion funds under advice.
The Agreement between Lateral Thinking and Powerwrap is significant for the wrap and master-trust industry, as a newcomer, offering market leading technology, has been chosen over the major providers with legacy technologies.
The new wrap platform uses the technological expertise of ASX-listed Australian portfolio administration provider, Praemium Limited ("Praemium"), whose V-Wrap investment reporting and tax management services support more than $31bn in reported assets.
Powerwrap and Lateral Thinking have committed to a long term relationship focused effective business transition so as to achieve cost savings and better integration between financial planning and accounting practices.
Powerwrap Chief Executive Officer, Mr. Andrew Varlamos, said the move by Lateral Thinking acknowledges the strategic strengths which his company brings to the financial planning industry, which is all about building a process model between planners and accountants.
"Powerwrap has developed an industry solution for financial planning and accounting practices to achieve business efficiencies, by using modern investment administration and tax management functionality that's not available from the traditional wrap account and master trust providers," he said.
"We will continue to work with our technology partner, Praemium, to ensure the needs of the combined planning and accountancy practices are at the forefront of service delivery."
"By using Praemium's market leading investment administration technology, Powerwrap clients benefit from a full service wholesale wrap account, with superior direct asset and tax management functionality," Mr. Varlamos said.
Lateral Thinking's Managing Director, Mr. Paul Huggins, said there were a number of reasons for entering into a wholesale business relationship with Powerwrap.
"We operate several licenses, which gives us the ability to service a broader segment of the market. While we've had our own license for more than 10 years we also provide advice under ING's RetireInvest. We're a relatively young, vibrant company that focuses on strategic advice rather than just offering investment products," he said.
"With over $1.4Bn in funds under advice, we have built our business as a boutique player specialising in delivering planning strategies that are independent of product relationships.
"So one of the key factors in partnering with Powerwrap, is the ability of its platform to support client demands for more sophisticated investment outcomes which increasingly requires a greater focus on direct assets and the ability to report and manage tax outcomes at the consolidated portfolio level, Mr. Huggins said."
Praemium Group CEO, Mr. Arthur Naoumidis, said the introduction in Australia of a modern wrap platform provides a new and dynamic dimension to the current traditional wrap industry.
"Here is a wrap provider which is technologically advanced while at the same time enables financial planning and accounting practices to provide services their clients need, at lower cost and with greater real-time efficiency," he said.
"Praemium is pleased to be able to work with Powerwrap so as to ensure Lateral Thinking achieves its high standard of service delivery," Mr. Naoumidis said.

September 7 2009: Powerwrap commences operations

Full service investment administration provider, Powerwrap, commenced operations today, processing the first transactions through the Powerwrap Investment Account.
Commenting on Powerwrap's operational launch, Chief Executive Officer, Andrew Varlamos said: "Powerwrap has developed a solution that allows financial planners to work more efficiently with accounting practices, through the use of modern investment administration and tax management functionality that is not available from the traditional wrap account and master trust providers.
"Our solution provides greater choice, transparency and control over investments, enabling financial planners to develop closer, more strategic relationships with their clients. Accountant-strength tax management functionality means that advisers have the tools to deliver superior after-tax returns."
Praemium Group CEO, Arthur Naoumidis, commented on the signing of the agreement with Powerwrap:
"This is the first deployment of managed funds trading functionality using V-Wrap. Our partnership with Powerwrap is about more than just providing access to our technology. Our existing V-Wrap client base has expressed the wish to access and consolidate managed investments utilising our technology infrastructure, and the Powerwrap service is a direct response to that request. Our strategic partnership with Powerwrap will see us working together to continually enhance functionality and service delivery to meet market needs".

 August 25 2009: Powerwrap integrating SMA technology

Powerwrap is pleased to announce that Praemium's award winning SMA technology will soon be available as a fully integrated component of the Powerwrap Investment Account.
Powerwrap's Chief Commercial Officer, Peter Rowley, said: "the integration of Praemium's SMA technology in our wrap platform will provide a long awaited solution to advisers that want to use SMA functionality as an integral part of the client's investment (wrap) account".
A key part of our strategy is to deliver SMA functionality to advisers in a way that enables them to construct (SMA) portfolios using the broadest possible range of direct assets as well as managed investments.
Commenting on the limited range of securities available through most SMA products, Peter explained: "the key difference in our approach (to SMAs) is that we enable the adviser to implement their own preferred models, across a range of direct equities, fixed interest and managed funds, providing full sector and product structure coverage. And from the feedback that we've received, it's a solution that makes a lot of sense to planners".
"We're not trying to jam a limited range of equities models into the planner's recommended list. What we're offering is a solution that enables financial planners to obtain significant gains in practice management efficiency by delivering technology in a way that gives the adviser ultimate flexibility and control over portfolio construction."
As the Responsible Entity of the Powerwrap Investment Account, Powerwrap handles all trading and rebalancing activity within a Managed Investment Scheme (MIS) structure. "With the assistance of our Investment Committee, we allow advisers to implement their own investment models and manage asset allocation within the SMA product. From there, advisers simply manage client accounts following the models. It's no longer necessary for advisers to manage and trade each client account individually."
Commenting on how this adds value to the advice relationship, Peter explained that: "where advisers approach portfolio implementation through models, the gains in consistency and quality of risk return outcomes across the advisory practice's client base can be significant. Quite simply, it's a key benefit to investors that can also reduce advice risk."
Offering access to direct equities and fixed interest as well as a range of more than 650 managed funds, financial planners can fine tune their own SMA models to meet the needs of their clients irrespective of the risk profile or value of the client account.

July 15 2009: Managed funds transactions to integrate with V-Wrap

Following approval of its Australian Financial Services License by ASIC last month, Powerwrap Limited will launch the first component of its new wrap account service in July this year.
Based entirely on Praemium V-Wrap technology, the Powerwrap Investment Account will provide online transactions across a universe of more than 650 managed funds within a custodial Managed Investments Scheme (MIS) structure.
As the first of three major component releases, the managed funds service offers seamless integration with Praemium V-Wrap technology and a natural replacement for the existing wrap accounts and master trusts used by Praemium customers. Following the release of managed funds, integrated SMA functionality will be available later in the year.
Developed in conjunction with Praemium, the Powerwrap Investment Account provides a single, integrated technology solution that not only delivers back office administration efficiencies to financial planners, but one that delivers significant portfolio value to the investor through the superior direct asset and tax management capabilities inherent in VWrap.
As a full service investment administration platform, the Powerwrap Portfolio Service provides custodial holdings for managed funds, and non-custodial holdings of direct equities (Praemium VWrap) and Cash (Adelaide Bank CMA) within a single consolidated account. The structure is designed to support efficient portfolio management:
- Custodial holdings of managed funds provides transactional efficiencies through pooling, without limiting flexibility or investor entitlements;
- Direct held equities give investors ultimate flexibility in corporate actions decisions relating to their portfolio;
- An integrated external cash facility offers superior transaction functionality, pricing and transparency as compared to the typical pooled cash arrangements offered by master trust and wrap providers; and
- Tax optimisiation operates at the consolidated account level and leverages V-Wrap's superior tax management capabilities.
For Praemium customers, Powerwrap offers a complete business solution based on the client's preference for Praemium portfolio reporting technology - all at a cost and quality superior to the traditional master trust and wrap account providers.