Fiducian plugs SMA offering
FIDUCIAN Portfolio Services(FPS) will start to market its own separately managed account (SMA), claiming that it has been in existence for a number of years.
FPS managing director Indy Singh says that the group had built an SMA while it was constructing its wrap product and that it had been offering the product to clients at no cost.
Singh says the SMA offers three portfolios — imputation, growth and property securities — which are internally managed by FPS investment director Conrad Burge.
According to Burge, the SMA was designed as an adjunct to the wrap product but has been used by investors as a way to enter the direct equities market, with FPS targeting blue chip stocks within the ASX100 index.
Burge says the portfolios typically have 14 stocks and a minimum investment limit of $50,000, with all clients owning the same stocks across each type of portfolio.
The stocks are chosen based on a research model that combines data from funds management groups, brokerage houses and FPS. Burge says FPS encourages the SMA to be used as part of a wider buy and hold strategy.
Over the last three years the imputation portfolio has returned 16.2 per cent per annum, with income growth at 6.4 per cent and capital growth at 9.4 per cent.
AUTHOR
Jason Spits
Recommended for you
With advisers expressing a reluctance to invest in cryptocurrency, advised clients are tending to have a smaller allocation to the asset than their unadvised peers.
After surviving significant evolutions of the Australian financial advice industry, The Advisers Association is now celebrating a century of advocating for advisers.
At the halfway point of the year, consolidation pressures continue to drive financial services M&A with three areas identified as targets for asset and wealth managers, according to PwC’s mid-year outlook.
ASIC is calling on licensees to review their client onboarding practices to avoid vulnerabilities associated with share sale fraud, noting particular concerns in the use of white labelling services.
