Briefcase launches 5 SMAs on Praemium platform

Australian fintech Briefcase has partnered with Praemium, introducing five new multi-asset separately managed accounts (SMA) onto the platform for retail investors amid growing demand from advisers.

According to Briefcase, the five risk-based portfolios are constructed using “best-of-breed, ASX listed ETFs from reputable issuers”, designed to meet client demands across a range of risk appetites through low-cost managed accounts.

“What was once the domain of institutional investors, Briefcase’s proprietary portfolio construction technology is making these advanced strategies accessible to retail clients for the first time,” the firm said.

Briefcase founder and chief executive Josh Persky said the portfolios were designed to meet the adviser demand for institutional-grade investment management expertise previously unavailable for retail clients.

“We’re extremely pleased to be partnering with Praemium to meet extensive demand for our highly efficient, low-cost, and transparent portfolios that are unconstrained by alignment with any investment managers or ETF issuers, focusing entirely on delivering better outcomes for investors,” Persky said.

“[The new portfolios] provide flexibility and precision in investment management, ensuring that every investor can access sophisticated portfolios aligned with achieving their individual goals.”

Praemium head of investment managers and government Damian Cilmi said the firm is pleased to be partnering with Briefcase to launch the firm's first SMAs on the platform.

“Our aim is to provide advisers and their clients with the broadest choice of high-quality investment solutions, and we are pleased to be able to offer these portfolios via our Super, SMA and Spectrum products,” Cilmi said.

Managed accounts have seen a steady growth in demand over the last 12 months as advisers seek new ways of boosting efficiency and reducing time spent on non-customer-facing tasks.

As such, in January Praemium reported net inflows of $261 million from SMAs for the quarter, a considerable increase from $165 million in the previous quarter, marking the division’s highest results in nine quarters, according to Praemium CEO Anthony Wamsteker.

However, this rise in interest has been noted beyond Praemium, with State Street reporting in December that more advisers were utilising managed accounts as a means of providing lower-cost investment options for clients as they continue to face cost-of-living pressures.