Praemium SMA (Separately Managed Accounts)

Separately managed accounts are an alternative to Managed Funds.  SMAs are non-unitised managed funds. As an Investor you are able to utilise the collective knowledge and intellectual property of investment professionals and experienced fund managers and have greater transparency and flexibility by investing in shares.

Main Advantages of a Separately Managed Account

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

• The securities in the account are visible just as they would be if they had been purchased directly
• The underlying securities are owned, not units in a fund.
• As a result, you can manage the tax position.
• SMA’s offer one or more model portfolios to choose from so you are able to create a customised and diversified portfolio.
• 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 effective diversification in a portfolio and allows for dollar cost averaging into direct shares.

What is a Model Portfolio?

A separately managed account portfolio is constructed using one or a number of investment models managed by professional investment managers.  Models will differ in the levels of risk and return and each model will have a different investment emphasis.  The Model manager will regularly manage and review the model to ensure it continues to meet the model’s investment objective. The key difference between an SMA investment and a Managed Fund is that the SMA holder retains beneficial ownership of the securities. The underlying securities are visible to you as the investor and you retain the tax advantages of owning direct shares.