Features and Benefits of SMA
Portability
Since the client owns the underlying investments, they can be moved in and out of a Managed Account on an in-specie basis at any time. As a result the shares are completely portable and when using this portability there is typically no CGT event. In most (if not all) cases fees for transferring out are limited to administration charges and buy/sell spreads are non-existent.
Tax planning
This is one of the most discussed and most often touted benefits of Managed Accounts. The assets are owned by the client and the client (or their advisers) can make decisions as to which purchase lots are allocated against sell transactions to increase or decrease the CGT liability in the current tax period.
When purchasing shares in a Managed Account you also do not inherit a capital gains tax liability which is a common problem with unit trust style Managed Funds.
Available investments
All Managed Accounts on offer are most heavily invested in Australian equities. Some include fixed interest securities and international equities are also available.
Transparency
There is steady consumer demand for ever greater disclosure and an instinctive mistrust of ‘secret’ or hidden processes. With a Managed Account, all transactions are reported to the client. The range of securities in which their funds are invested, the buys and sells made by the manager and the returns on each item are all recorded on the account statement. All fees and charges are shown as individual items.
While this is too much information for many clients it does allow their adviser to be fully informed.
Access to portfolio manager
Direct access to our professional portfolio managers and regular updates.
Full administration and reporting
No administration hassles and reporting is available.
Ownership
You are always the beneficial owner of the underlying investments.
Cost efficiency - Inherent diversification
As Beresfords is able to negotiate brokerage on a scale basis for clients, brokerage costs can be significantly lower than would be the case with a traditional stock broker or even a discount broker.
