J.P. Morgan will provide custody and equities execution services to support the new international separately managed accounts business of a $7 billion platform.
Following a competitive tender process, Praemium has appointed the bank and will now offer international SMAs through the J.P. Morgan platform. Under the deal, Praemium will also have access to the bank's extensive research, sales and trading execution through its equities business.
J.P. Morgan Australia and New Zealand head of client relationships and sales, custody and fund services, Bryan Gray said the combined strength of the firm's custody and markets businesses, as well as its technology platforms and depth of knowledge, will deliver significant efficiencies to Praemium.
"To ensure Praemium has a distinct competitive advantage as it grows its offering, it will access our strategy, economics, fixed income, equities and foreign exchange research and be able to view the pricing transparency of equities and custody records through our online platform, J.P. Morgan Markets," Gray said.
Praemium chief executive Michael Ohanessian said the platform is delighted to be working with J.P. Morgan.
"Adding international securities is an important next step in the evolution of our leading proposition. Fortunately, Praemium already applies corporate actions and accurate tax treatments to over 3500 international securities enhancing the value proposition for our clients," Ohanessian said.
"We are confident that J.P. Morgan can support our requirements as we expand our SMA and strive to meet the international investment needs of our clients."
J.P. Morgan added that its capacity to continually invest in its business will ensure the ability to support both the immediate and future strategic investment and product needs of Praemium's international SMA.
Separately, Praemium also announced today that it has exceeded $7 billion in funds under administrations across its global funds and platforms. The Australian business sits at $4.53 billion while its international FUA totals $2.49 billion.
"We are delighted to reach another significant milestone for Praemium. We are growing strongly and remain focused on accelerating our momentum, by investing in the foundations of our business in preparation for further growth," Ohanessian said.
"This investment in growth, particularly in technology, product, sales and marketing, will see us deepen engagement with our existing clients as well as expand the addressable market beyond the rapidly growing SMA segment."