Colonial First State (CFS) has launched the group's first Separately Managed Account (SMA) which will be offered to high net worth clients through a Commonwealth Bank-owned advice group
CFS developed the Commonwealth Private Separately Managed Account (CPSMA) in conjunction with the Commonwealth Bank Business and Private Banking team over the past 12 months.
Colonial First State Custom Solutions general manager Chris Stevens said CFS already operated Managed Discretionary Accounts and Individually Managed Accounts for dealer group clients, but this was the first SMA launched by the group.
Stevens said while the CPSMA was developed by CFS it would be managed by Commonwealth Private Investment Managers. It would have 11 model portfolios across a range of risk tolerances and asset classes including managed funds, ASX-listed securities and cash.
Management fees will be based on a percentage of assets under management and will start at 0.52 per cent for investments up to $300,000. Management fees will then decrease as investment levels rise, with fees falling to 0.1 per cent for investments above $2.5 million.
Stevens said Commonwealth Private, a Commonwealth Bank advice licensee, will offer the SMA to its high net worth clients but it may also be offered through Colonial's FirstWrap platform.
"Managed account structures have been around for a long time but have never really had strong market take-up. They are getting more traction now due to the efficiencies they provide financial advisers and investors," Stevens said.
