‘Virtual’ SMA pledges premium service
A Melbourne-based portfolio administration service plans to launch a virtual self-managed account option for investors by March.
Premium Portfolio Servicesmanaging director Arthur Naoumidis says investors will be able to synchronise their portfolios against a number of virtual accounts created by fund managers.
The virtual accounts will cover most investment styles and investors, and financial planners can adjust their portfolios in line with any changes made by the fund manager.
Premium is looking at custody services as part of a move to lift the number of services offered, says Naoumidis.
The company’s initial offering has been a web-based capital gains tax optimisation program which is available to planners for a fee of $200 per portfolio.
“It is a web-based service which can be accessed from anywhere,” he says.
“We have built in a very powerful capital gains tax (CGT) optimisation program that reconstructs portfolios to minimise tax.”
The service records all the transaction history of an equity, including dividend re-investment plans and rights issues, and works out the amount of CGT liable. It also calculates the best time to realise tax losses.
The program has a hypothetical option to examine different portfolio models to minimise CGT before the tax year end.
“The program can display unrealised tax opportunities to yield tax minimisation,” Naoumidis says.
All investments can be included in the program, including managed funds and property. The company is negotiating withMorningstarto obtain historical data on managed funds.
The service can be re-badged. An online broking service and some accountants have already taken up the program.
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