Præmium has signed a letter of engagement with Fat Prophets UK to launch a British adaptation of its separately managed account (SMA), SO Smartfund.
The listed portfolio administration specialist received regulator approval at the start of April to provide SO Smartfund to the UK wealth management market.
Smartfund is comprised of a hybrid structure combining an SMA with a retail investment fund.
Acccording to Praemium director and company secretary Cathryn Nolan, the next step is seeking FSA approval to enable Smart Operator, authorised to manage funds in the UK, to launch a Fat Prophets version of its SO Smartfund.
Fat Prophets UK will brand is own version of SO Smartfund in what the group believes will be a world first hybrid SMA / managed fund.
The unique legal structure of the agreement will allow clients to take advantage of UK tax laws for managed fund investments, which do not pay capital gains tax at the fund level.
Developing its own investment models for the offering, Fat Prophets UK will distribute its version of SO Smartfund through its British client base and by leveraging existing alliance arrangements with leading UK stockbrokers.
In Australia, Fat Prophets already offer its own branded SMA under a white-labelled service powered by Præmium's technology.
Præmium's managing director Arthur Naoumidis, said that the FSA approval process was expected to take between six to eight weeks.
"Fat Prophets is well acquainted with the SMA concept and is well positioned to distribute this offering in the UK," Naoumidis said.
"It is a testament to the strength of the Smartfund offering and the unique benefits that it delivers, that we have received such interest since regulatory approval of Smartfund was granted."
