New platform adds benefits for both investors and advisers

David Bryant

David Bryant

Four financial services industry experts have partnered with Australian Unity to launch a new investment platform, Federation Managed Accounts.

The company that provides the new platform is Federation Alliance, which has been formed by industry experts John Morrison, Stephen Reed, Jan Morrison and John (Monty) Grainger, in partnership with Australian Unity.

The platform’s fees and functionality are highly competitive with other platforms currently available, offering access to a broad range of investment options and providing transparent investment administration including consolidated reporting, tax management and online content management.

One of the platform’s key advantages is that platform investors can also apply for shares in Federation Alliance. Shareholders will then be entitled to dividends distributed by Federation Alliance, subject to a dividend pool being available and the financial position of the company at the time.

Shares representing a 90 percent interest in Federation Alliance will be offered to investors, based on their usage of the platform, and the remaining 10 percent indirectly shared between the Federation Alliance key principals and Australian Unity.

The Federation Managed Accounts platform will be administered by Linear Asset Management, an established provider of platform and administration services to the financial services industry.

David Bryant, head of Australian Unity Investments (AUI), said the previous experience of the principals in developing products right at the coal face of the industry was a major factor in AUI’s decision to partner with them.

“The Federation Alliance principals’ experience in the industry has led to the development of this distinctive approach for Federation Managed Accounts.

“Our conversations with financial advisers highlight that they are very interested in non-aligned platforms, and we believe Federation Managed Accounts will appeal to such advisers.

“At the same time, advisers and investors are looking for more value from relationships, and Federation Managed Accounts has been purpose-built to offer this.

“Offering a non-aligned platform that provides benefits to investors through shared ownership provides an attractive option for advisers and clients.

“Federation Managed Accounts will be a competitive entrant in the market at a time when complex record-keeping required by regulation makes platforms increasingly appealing for investors—if the price is right,” Mr Bryant said.

Dr Morrison agreed the platform’s administration features simplify matters for investors, and such options can only become more important as continuous changes to regulations inevitably make things more complicated.

“The ever-increasing complexities of maintaining portfolio records for tax and compliance reasons have become a major consideration for investors—the compliance struggles that SMSF trustees face are a good example of this.

“Our intention is for Federation Managed Accounts to provide managed fund, wrap and model portfolio capabilities as well as separate platforms for superannuation, non-superannuation and corporate superannuation,” Dr Morrison said.

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