Media Release: InvestSMART continues to lower costs of investing through Professionally Managed Accounts (PMAs)
SYDNEY, November 1 2018: Digital wealth provider InvestSMART, has announced the launch of low-cost Professionally Managed Accounts (PMAs*), as part of its mission to help lower the total costs of investing for Australians.
Following the release of its recent whitepaper, ‘How fees can destroy your wealth: Understanding the total cost of investing’, InvestSMART has announced the launch of the InvestSMART PMA – a new investment service which offers direct investors the benefits of professional portfolio management at competitive fees.
InvestSMART PMAs allow investors to create a unique portfolio of securities from a range of model portfolios, giving them greater control and transparency. Investors can also benefit from low-cost brokerage and administration fees, as well as receiving one tax report for all their holdings.
Commenting on the launch, InvestSMART Head of Funds Management, Alastair Davidson, said: “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.
“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."
Greater control
The model portfolios in the PMA are all professionally managed and constructed by InvestSMART’s experienced investment team.
“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.
Under the PMA model, investors will hold legal ownership of their shares, with the ability to move securities and make regular contributions or withdrawals with ease. Investors can also terminate the arrangement at any time and keep their shares.
Cost savings
Unlike most other managed investment schemes, investors’ tax position will only be affected by the activity within their own account, so they will not inherit capital gains from other investors.
Investors can also benefit from low brokerage costs of $5.50 or 0.11% (whichever is greater) on buys and sells.
“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 Professionally Managed Accounts (PMAs) are a new investment service that allows investors to create a unique portfolio of securities from a range of model portfolios. These accounts offer professional portfolio management at competitive fees, providing greater control and transparency for investors.
InvestSMART PMAs help lower investment costs by offering low-cost brokerage and administration fees. They also provide a single tax report for all holdings, which simplifies tax reporting and reduces costs associated with managing multiple investments.
Everyday investors benefit from InvestSMART PMAs through professional management of their portfolios, low-cost brokerage, and the ability to tailor their investments to their individual needs. Additionally, investors maintain legal ownership of their shares and can easily make contributions or withdrawals.
Yes, with InvestSMART PMAs, investors can combine model portfolios in any proportion they choose, creating a unique and tailored account that meets their individual investment goals.
InvestSMART PMAs offer tax advantages by ensuring that an investor's tax position is only affected by the activity within their own account. This means investors do not inherit capital gains from other investors, potentially reducing their tax liabilities.
InvestSMART ensures transparency in their PMAs by providing investors with greater visibility over how their money is being invested and where their fees are going. This is achieved through detailed reporting and the ability to see all transactions and holdings within their account.
The brokerage costs for InvestSMART PMAs are low, with fees of $5.50 or 0.11% (whichever is greater) on buys and sells. This competitive pricing helps investors keep more of their returns.
Yes, investors can terminate their InvestSMART PMA at any time and retain ownership of their shares. This flexibility allows investors to manage their investments according to their personal circumstances.
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