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.
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