Powerwrap cascades offering through client base


By Krystine Lumanta

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Investment administration services provider Powerwrap is working to expand its platform offering to a wider audience as part of its focus for 2014.

“Last year, we targeted private wealth advisers and their high net worth clients,” Powerwrap chief executive Cormac Heffernan told financialobserver.

“Being high net worth obviously means that you need access to a broader range of assets and that was great for us because it really tested the platform.

“In order to hit that market, we have to do everything, so now it’s can we do everything for everybody? It’s bringing it down a layer.”

Powerwrap would roll out various aspects of its services for high net worth individuals beyond that top-tier sector, Heffernan said.

“That’s the way Powerwrap sees itself; as a company that’s able to work through efficient processes and efficient legal structures, and roll out what might’ve been available to the extremely high net worths, to the high net worths, soon to be available for the mass affluent and cascade it,” he said.

“That will be driven a little bit by demand as well.

“Clearly, international trading is something that advisers want and we will roll that out, and then equally with the transaction account, we started off with cash, term deposits, managed funds and equities – what’s the next thing that should be sitting on the transaction account?”

In October, the investment platform released an execution-only service, giving advisers the ability to transact Australian Securities Exchange (ASX)-listed securities, wholesale managed funds and term deposits without using a full-service wrap platform.

The service, MWH Transaction Account, can be accessed using IRESS’s Xplan advice platform, the IRESS Order System, and does not charge funds under management-based administration fees.

Since the launch of the MWH Transaction Account, the reception had been strong, he said.

“What we’ve done is taken a small number of advisers and we’ve been working with them, but what surprised us actually was that we expected it to be predominantly taken up by advisers who use a lot of direct equities, but in fact it’s the managed funds side of it that’s created more interest,” he said.

“So we’re tracking it, making sure that our processes are robust and scalable around the managed fund side, which is almost there, so we’re pretty close to being able to open it out to everybody.

“We see quite a bit happening with the transaction account this year.”

The launch of the ASX’s mFund Settlement Service expected next quarter would also drive demand for Powerwrap’s transaction account, he said.

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