Separately Managed Accounts
Separately Managed Account (SMA) model portfolios are a way for clients to invest directly in shares, while maintaining the benefits of professional investment management. With all the features of investing in a managed fund, and the transparency of direct share ownership, there are plenty of reasons to consider SMA model portfolios for clients.
The benefits of SMA portfolios for your clients include:
- Investing in shares with the added benefit of professional investment management
- The ability to view the individual shares held within their portfolio
- Lower brokerage costs than they would pay if trading shares directly
- Their tax position is unaffected by other investors as an individual cost base is established for each investor
- No capital gains tax events and they avoid buy/sell spreads and broker fees when they transfer commonly-held shares into an SMA and between SMA model portfolios
The additional benefits of SMAs for advisers, include:
Business efficiency: With SMA models you spend less time administering your client’s portfolio and more time servicing your clients, which can help you reduce the total cost of servicing your clients.
Compliance control: Unlike direct share investments, with SMA models you’re not directly accountable for the share selection and ongoing portfolio management, decreasing your overall compliance risk.
Less administration: Receive the benefits of investing in shares without the administrative and compliance burden of reporting, and managing corporate actions. Unlike direct shares, with SMAs there’s no need to prepare a Statement of Advice (SOA) every time there’s a change to the shares held within the portfolio.
We are legally authorised to act as your Trustee for any SMA’s you might like to establish. As such, we will be responsible for the compliance and governance of your investment scheme.
We will ensure that it operates within the terms of the trust constitution, other governing documents and the law. We also assist in sourcing and then monitoring external service providers including taxation advisers, lawyers, custodians, and administrators. Through our close relationship with a third party provider, we can assist in the provision of a technology and administration system for SMA’s. This system allows users to access domestic and global investment markets, construct their own product offerings, report to a range of stakeholders and manage crucial elements of their financial services business.