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Perpetual aims SMA at adviser needs

Advisers are increasingly eyeing separately managed account-style investments, according to Perpetual, as regulatory change – and clients – demand greater independence, transparency and direct investments.

While an SMA launched by the group in May, following a five-year incubation period, is a first for Perpetual, it followed requests from advisers to access products similar to the group’s Industrial Share Fund and Australian Share Fund in an SMA structure.

“Over the last 12 to 18 months, because the equity markets have been less volatile, and also because we’re now in a post-FOFA type phase, there’s still a bit of grey there and advisers are going to start thinking about their business,” Perpetual portfolio manager Vince Pezzullo told ifa.

The SMA is offered to advisers as a complement rather than replacement to what they do because “a lot of advisers can do top 20 [stocks] no problem” – but a lot of advisers’ clients are also looking for more investment options in terms of direct shares, Mr Pezzullo said.

“A lot of advisers post-FOFA will have to make a decision and readjust their business to having a bit more direct [investments]. It’s all client-pushed – clients want direct equities because of the tax efficiency, ” he said.

“Advisers have an opportunity to diversify and make choices with their business and select where they put their money for their clients.”

The SMA uses Perpetual’s institutional resourcing and strategies but is capped at $300 million.


“We’ve done that with other strategies, the more niche products we offer to the adviser market and particularly high net worth [clients] who can take advantage and park their money for a while,” he said.

“It’s a unique strategy for us because you basically get access to all our IP in a direct pot.”

The SMA is predominantly available on independent platforms including OneVue, Praemium, Mason Stevens and HUB 24 due to the enhanced direct share functionality, he added.