Syscorpandvan Eyk Researchhave signed a memorandum of understanding to deliver an Individually Managed Account (IMA) to the financial planning market.
The custodial wrap service, to be launched in early 2003, will see Syscorp provide the investment platform for the operation of the IMA and van Eyk Research the investment management capabilities, including model portfolios.
The IMA, to be targeted at investors with a minimum of $100,000, will allow individuals to own a portfolio of securities in their own name and enable them to harness the associated tax advantages.
Clients invested with IMA’s also have the advantage of professional investment management and stock selection.
Four institutional clients,Deakin Financial Planning, Next Financial, Sariah Super Fund and Wealthpac Master Trust, are presently implementing the service and will total assets of approximately $20 million.
Syscorp director Chris Liddell says van Eyk’s choice of Syscorp’s technology and services as its platform was an endorsement of Syscorp’s commitment to the IMA market.
“Our ability to transform van Eyk’s research-based model portfolios into low cost financial products will provide financial planners with a real alternative to managed funds for their high-net-worth customers,” Liddell says.
Van Eyk Research has developed model portfolios for the service, all broadly style neutral, which include leaders, aggressive, income and ethical portfolios.
They will be managed through a quantitative process developed in-house by van Eyk and overseen by van Eyk chief investment officer Tom Cottam.
Van Eyk Research managing director Stephen van Eyk says that Syscorp was chosen to partner in delivering the IMA was due to the system’s ability to improve after tax returns,
“Syscorp software improves client after tax performance by either minimising capital gains or maximising capital losses on all transactions,” says van Eyk.
“The system will determine which shares to buy and sell to fulfil these requests. In addition it will email the adviser and the client once trades have been filled,” he says.
The offering will be an online real-time service and allowing comprehensive tax reporting and will ultimately dovetail into other platforms for consolidated reporting.
The service will be priced at 0.80 per cent per annum plus a performance fee.
