International separately managed account (SMA) portfolios can assist advisers by reducing their administrative burden and costs, research from platform provider Hub24 suggests.
According to a Hub24 white paper, International managed portfolios: A gateway for SMSFs to invest overseas, SMAs can sometimes – depending on the platform involved – boost practice efficiency as well as help advisers reduce costs for their clients.
Speaking at a media briefing on the white paper yesterday, Hub24 managing director Andrew Alcock said international SMAs enhance an adviser’s proposition to clients.
“There’s an opportunity to grow the advice space with these portfolios, so it’s a better offering for potential clients and offers greater client engagement,” Mr Alcock said.
“In fact, they enhance their position so much they can actually go out and chase these unadvised DIY funds and say, ‘I’ve got an opportunity for you. I can actually get you access to different asset classes in a controlled, risk-managed way’.”
Hub24's head of marketing and distribution, Wes Gillett, also noted that international SMAs can help cut transaction costs and minimise tax, adding that for the first time, advisers are able to factor in capital gains tax as one of the decision points when choosing fund managers.
“An adviser can flick a button and see what the potential CGT implications are, moving from one portfolio to another,” Mr Gillett told the briefing.
“If you’re living in the managed fund world, and you’re going from managed fund one to managed fund two, you’re selling and rebuying twice the amount of assets you need.
“In the managed portfolio world, you’re only buying and selling the difference,” he said.
Stimulate new ideas. Stimulate new thinking. Top up your CPD points and hear from industry experts with ifa’s Knowledge Centre. Keep up to date with the latest trends and reforms, all while adding to your CPD hours. Explore the Knowledge Centre now.
intelliflo has announced the appointment of its first chief product officer. ...
Lifespan Financial Planning has announced the appointment of an industry veteran. ...
The Federal Court has moved to wind up an unregistered managed investment scheme whose operator blames the corporate regulator for blowing up his inve...