NEWS UPDATE: SMAs gain traction
Volatile market conditions currently provide the ideal opportunity for financial advisers to introduce clients to the rapidly expanding separately managed account (SMA) sector, according to Praemium managing director Arthur Naoumidis.
Presenting at SMA08, the seventh annual Separately Managed Accounts conference, in Sydney this week, Naoumidis described SMAs as “the new generation” in investing, with more advanced and ever-evolving technology and superior client benefits.
He said SMAs are particularly well-suited to self-managed super funds (SMSFs) and could help advisers to gain access to the lucrative SMSF market.
In his opinion, SMSF investors have “the perfect psychological fit” with SMAs in that they have direct equity investment experience and require a professional investment management service with online access, advanced customisation tools such as holding locks, stock filters and trading limits and detailed reports.
Naoumidis said SMAs should also gain traction with other high-net-worth investors, as they are up to 0.5 per cent cheaper than unitised managed funds, are more tax efficient, provide direct beneficial ownership, can tailor portfolios to individual requirements, provide a managed direct equity solution for dealer and advisers, can be white-labelled and allow for rapid annual returns.
He said that in a volatile market, SMAs could also improve performance outcomes via cost reduction and effective tax management.
Recommended for you
As the government announces a public inquiry into the collapse of Dixon Advisory, risk adviser Richard Silberman has detailed the three areas that typically lead to an AFSL's collapse.
With a growing number of advisers now running their own business, they need to pivot their career identity to being a business owner rather than just as a financial adviser if they want to futureproof their business.
Zenith Investment Partners has launched a range of new managed account portfolios over the past quarter, including on Insignia Financial’s Expand platform.
The financial services technology firm has officially launched its digital advice and education solution for superannuation funds and other industry players.