Grow Your Wealth (SMA)

By Jason Fittler,

In September, Grow Your Wealth will be launching two SMA’s products. 

These products will allow investors to have a professionally managed portfolio but at a lower price.

The models allow smaller investors to obtain more control over their investments through divarication and lower cost structure.

A separately managed account (SMA) is a customised share portfolio where the assets are owned by individual investors.

An investment is allocated across one or more available investment models, which will determine the portfolio allocation between shares.

These investment models have been provided by investment specialists and vary in focus in much the same way that managed funds vary in their risk and return objectives.

A separately managed account is professionally managed like an individual portfolio with many key advantages:

  • The securities in the account are visible and portable just as they would be if they had been purchased directly
  • The underlying securities are owned, not units in a fund. As a result, the investor can manage the tax position.
  • Consolidated reporting is provided online with complete and concise reports available at any time. All the paperwork and administration is taken care of by the SMA provider, reducing the administrative burden on investors.
  • Low minimum investment requirements and low brokerage costs allow SMA investors can more effectively diversify their portfolio.

An SMA will offer a number of model portfolios for investors to select from.

A separately managed account portfolio is constructed using one or a number of investment models managed by professional investment managers.

The key difference between an investment and a managed fund is that the SMA holder retains beneficial ownership of the securities. The underlying securities are visible to the investor, and the investor retains the tax advantages of owning direct shares.

Until recently, separately managed accounts (SMA) have been for high net worth individuals with access to minimum investments of $500,000 or more. Changes in technology have made SMA’s more affordable for the average investor.

Initially, Grow Your Wealth will offer an SMA to suit Balanced investors and Assertive investors for those who are looking for more growth.

In time, Grow Your Wealth will also be offering a Value Investor model for those clients looking for long-term growth and higher yielding investments.

SMA’s suit smaller investors due to the lower fee structure and transactions costs as they allow you to achieve the desired level of diversification in your portfolio on the money invested.

Professional investment managers run them but still allow you more control over where your money in invested.

Please contact us if you would like to discuss if these products are right for you or if you would like some more information. Call (07) 4771 4577.