Aviva Investors has launched two separately managed account (SMA) products aimed at individuals who favour direct investments and self-managed superannuation fund (SMSF) members.
“In around March this year we asked advisers what they wanted and they told us they were very interested in direct share SMA type products with low cost and transparency,” Aviva Investors head of retail Andrew Peterson said.
The Aviva Investors Dividend Builder SMA is an income focused offering designed to produce a high level tax effective income stream, while the Aviva Investors Core Opportunities SMA has been established to generate high levels of capital growth.
The underlying assets for both portfolios are Australian equities.
Investors and financial planners can access both products directly.
Instead the initial administration facility for the fund has been developed by financial planning software specialist firm IRESS.
“We used IRESS because they are a market leader in financial planning technology and it gave us direct access to financial advisers using Xplan and Visiplan which is really important for a product like ours that doesn’t sit on a platform,” Aviva Investors product and communications manager John Besley said.
So as not to be exclusive to certain advisers Aviva Investors are looking to incorporate data feeds from Coin users as well in the first quarter of 2011.
In relation to cost, Peterson said the advisers they asked did not want a performance fee included and wanted only to pay a low management fee anywhere between 50 and 70 basis points.
The management fee for the Core Opportunities SMA is 0.5125 per cent while the Dividend Builder SMA has an associated 0.4613 per cent management fee.
The Core Opportunities product will hold anywhere between 15 and 25 equities and the Dividend Builder product portfolio will include between 10 and 20 stocks.
The minimum investment for both offerings is $20,000 and are available to investors now.
