Why suddenly all the attention on this new client offering - the Separately Managed Account (SMA)?
The reality is SMAs are not "new" - they have been around in the US since the early 1970s and in Australia for over 10 years. In 2010 the SMA market in the US represented over $900 billion. The growth in SMAs in the US far outstripping the growth in managed funds.
The growth of the separately managed account industry is best expressed by Steven Gresham, Executive Vice President of Phoenix Investment Partners Limited, "The managed account industry is on a roll, driven by powerful baby boomer demographics and the boomers' growing need for more customized, tax-sensitive, transparent investment solutions."
The OneVue Unified Managed Account (UMA) offers SMAs via the OneVue Managed Account Product Disclosure Statement (PDS).
- Hear more about OneVue's SMA Investment Managers.
- Review the professionally managed SMA model portfolios on offer.
- Download the OneVue Separately Managed Account Product Disclosure Statement.
We are supporters of SMAs and offer your clients two types of SMA Model Portfolios:
- Professionally managed
- Personally Directed
The professionally managed SMA Model Portfolio is just that. Your clients' portfolios are professionally managed by some of Australia's top investment managers. Learn more about OneVue's SMA Investment Managers.
In the professionally managed model portfolios OneVue takes instructions from the approved investment managers and buys and sells the underlying shares in accordance with their instructions.
Your clients can be invested in professionally managed model portfolios with some of Australia's top investment managers with as little as $25,000 and pay as low as 0.11% for professional management.
Personally Directed Model Portfolio
The personally directed model portfolio is where you and your clients design your own model portfolios. This is one of the fastest growing products in the OneVue stable of investment choices.
- You and your clients are in control.
- You and your clients can create your own model portfolios.
- OneVue manages all the paperwork, freeing you to concentrate on your clients and their performance.
- Your clients' shares are 'locked' so nothing is bought or sold without your permission. Note: Refer to Managed Account PDS Part A for circumstances where shares may need to be sold independently.
Let's start by defining an SMA and recapping the advantages available to investors invested in both professionally managed model portfolios and personally directed model portfolios. Later we will highlight the key differences between the two SMA investment options.
An SMA is a portfolio of securities (including ETFs, listed securities, staples, etc) managed in a custodial environment.
That means that your clients own the underlying shares directly and you have transparency of your clients underlying investments. However all the administrative burden associated with direct share ownership is managed by OneVue.
KEY ADVANTAGES OF INVESTING IN SMAs
1. You have beneficial ownership of all the securities that you own.
Providing there is no change in the name of the beneficial owner, you may transfer shares into or out of OneVue SMA without triggering a CGT event. However, if the investment needs to be rebalanced a CGT event may occur.
2. You have easy access to a consolidated view of what you own.
With the OneVue SMA you have a single point of access to a wide range of investment options and model portfolios, each with its own style of management.
You can view your Professionally Managed Model Portfolio(s), Personally Directed Model Portfolio and consolidated Portfolio online, 24 hours a day, 7 days a week. For example, the consolidated view of your Portfolio will show the Brambles shares you hold in your Portfolio and your direct shares held in your Personally Directed Model Portfolio.
3. You have a customised investment experience.
To customise your share investment you can create an asset mix that is tailored to your needs. You can blend professional Investment Managers and model portfolios in any proportion that you choose, subject to the $25,000 minimum investment size - and hold your individually selected direct shares and cash in your Personally Directed Model Portfolio.
4. Reduced paperwork and consolidated tax reporting.
With direct share ownership, there can be considerable time and cost in maintaining, reporting and tax-optimising your Portfolio. With the OneVue SMA these functions are all provided, saving you time.
We will receive and process all of the paperwork related to your account and provide you with a consolidated taxation report. After the end of the financial year, you will receive a taxation summary report containing the information you need for your tax return. Your tax adviser can utilise this information for your tax return – saving you both time and money.
5. Regular and interim tax reports enable you to plan better.
Easily accessible interim tax reports are available online enabling you and your adviser to plan for your year end tax, upcoming retirement, the start of an allocated pension - or other changes in your personal circumstances.
To learn more
Hear more from our Investment Managers
Learn more about the SMA model portfolios on offer
If you would like more information on how you can become a OneVue Separately Managed Account client, please call us on 1300 790 235 between 8.30 am and 5.30 pm, Sydney time. We look forward to your call.
Disclaimer
The information in this document is general information only that has been prepared without taking into account any individual’s objectives, financial situation or needs. Before acting on this information you should read and consider the relevant offer documents available by contacting OneVue or downloading here.
The OneVue UMA Other Assets & Liabilities Service, SMA and Wrap Service are issued and operated by OneVue Limited ABN 18 072 262 312, AFSL 245525. The OneVue term deposit hub is provided by Australian Money Market Pty Ltd under the AFS licence of DDH Graham Limited ABN 28 010 638 219 AFSL 226319. OneStepSUPER is issued by CCSL Limited, ABN 51 104 967 964, AFSL 287084.