Media Release: InvestSMART continues to lower costs of investing through Professionally Managed Accounts (PMAs)

InvestSMART PMAs give investors greater control and transparency at a lower cost

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.”

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