Investors want more control of assets: van Eyk

van-eyk/van-eyk-research/investors/chief-investment-officer/australian-taxation-office/capital-gains/chief-executive/

5 June 2014
| By Staff |
image
image
expand image

Growing numbers of investors are taking the plunge and following financial advisers’ recommendations to try direct investments through separately managed account (SMA) services, van Eyk Research believes. 

Mark Thomas, van Eyk chief executive and chief investment officer, said that research showed investors and advisers were increasingly attracted to the direct share ownership, control and transparency provided by the SMA structure.  

“As investors become more sophisticated, they want greater flexibility and control of their assets,” he said.  

“With an SMA, investment decisions are outsourced to professional managers, however, the investor retains beneficial ownership of the underlying investments.  

“Unlike managed funds, there are no embedded unrealised capital gains but rather all dividends, franking credits and any capital gains or losses flow through to the end investor.”  

Thomas said Australian Taxation Office data showed that over 60 per cent of self-managed super funds’ assets were held in direct shares and cash on December 31, 2013, which highlighted the need for SMAs. 

“SMAs may overcome some of the limitations of managed accounts however, they are not for everybody,” he said.  

“Investors need to seek professional advice to ensure that an SMA is the right solution for them.” 

Thomas said van Eyk had plans to expand its SMA research capabilities in the next 12 months, starting with the launch of its iRate online research and portfolio construction tool. 

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

2 months 2 weeks ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

2 months 3 weeks ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

4 months 3 weeks ago

ASIC has suspended the Australian Financial Services Licence of a Melbourne-based financial advice firm....

1 week 2 days ago

The corporate regulator has issued infringement notices to three AFSLs whose financial advisers provided personal advice to a retail client while unregistered....

2 weeks ago

ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test....

2 weeks 5 days ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND