Praemium-backed online managed funds trading platform Powerwrap has started operations, and is aiming to add SMA functionality to its repertoire in the next quarter.

The Powerwrap Investment Account - a managed investment scheme (MIS) operating on Praemium's proprietary portfolio administration platform, V-Wrap - provides custodial holdings for managed funds, and non-custodial holdings of direct equities and cash within a single consolidated account.

Andrew Varlamos, chief executive of Powerwrap, said the firm was already working with several financial planning companies in Praemium's clients list to properly test the new service.

"We're offering managed fund access only till date with SMA [separately managed accounts] functionality to come later in the fourth quarter," said Varlamos.

According to a statement from Praemium, 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 while an integrated external cash facility allows improved transaction functionality, pricing and transparency as compared to the typical pooled cash arrangements offered by master trust and wrap providers.

Praemium said tax optimisiation operates at the consolidated account level and leverages V-Wrap's superior tax management capabilities.

"This is the first deployment of managed funds trading functionality using V-Wrap," said Praemium group chief executive, Arthur Naoumidis, on the deal.

"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," he said.