Account launched to lower investment costs
The following article, written by Eliot Hastie, discussed the launch of InvestSMART's PMA. It appeared in Investor Daily on 2 November 2018.
InvestSMART has launched the low-cost Professional Managed Accounts, a new service that offers direct investors the benefits of professional portfolio management at competitive fees.
The new PMAs allow investors to create security portfolios from a range of models, giving them greater control and transparency.
InvestSMART head of funds management Alastair Davidson said that their recent white paper on how fees can destroy wealth showed the fund how essential a low-cost option was to investors.
“Our research shows that an accumulation of small fees, including financial advice fees, implementation fees, platform fees and investment management fees, can really eat away at investor returns. It is therefore essential that investors understand the fine print before investing,” he said.
Mr Davidson said technology had come a long way, which allowed the company to offer a cheaper service to investors with greater control.
“Taking advantage of recent advances in technology and our ability to source low-cost providers, InvestSMART has launched this new service to provide investors with greater visibility over how their money is being invested and where their fees are going.”
The model portfolios in the PMA have all been constructed by the InvestSMART team, said Mr Davidson. And under the model, investors hold legal ownership of their shares with the ability to move securities and make contributions or withdrawals.
“Investors can combine our model portfolios in any proportion they choose, creating an account that is unique and tailored to their individual needs,” Mr Davidson said.
Mr Davidson said that unlike other managed schemes, investors would only be affected by activity within their own account, meaning they would not inherit capital gains from other investors.
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“We think this model will appeal to investors who want to build a portfolio of equities without having to continually watch the markets and make trading decisions,” Mr Davidson said.
“The taxation and cost benefits are also highly attractive, giving investors the opportunity to keep more of their hard-earned capital in their pocket.”
Frequently Asked Questions about this Article…
InvestSMART's Professional Managed Accounts (PMA) is a new service designed to offer direct investors the benefits of professional portfolio management at competitive fees. It allows investors to create security portfolios from a range of models, providing greater control and transparency.
InvestSMART's PMA reduces investment costs by leveraging recent advances in technology and sourcing low-cost providers. This approach allows them to offer a cheaper service with greater control over how money is invested and where fees are going.
Everyday investors benefit from InvestSMART's PMA through professional portfolio management, greater control and transparency, and the ability to tailor portfolios to individual needs. Additionally, investors only incur costs and taxes based on their own account activity, not others'.
Yes, with InvestSMART's PMA, investors can combine model portfolios in any proportion they choose, creating a unique account tailored to their individual needs.
Unlike other managed schemes, InvestSMART's PMA ensures that investors are only affected by activity within their own account. This means they do not inherit capital gains from other investors, offering a more personalized investment experience.
InvestSMART's PMA provides greater transparency by allowing investors to see exactly how their money is being invested and where their fees are going. This is achieved through the use of advanced technology and low-cost providers.
InvestSMART's PMA offers tax benefits by ensuring that investors only deal with the tax implications of their own account activity, rather than inheriting capital gains from other investors. This helps keep more of their capital intact.
In InvestSMART's PMA, investors hold legal ownership of their shares. This gives them the ability to move securities and make contributions or withdrawals as they see fit.
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