Macquarie Bank and Fairfax’s latest online acquisition InvestSmart have joined forces to offer an investment scheme that cuts financial planners out of the equation.
Macquarie will launch the InvestSmart Market Leaders managed investment scheme (MIS) today directly to retail investors.
The MIS will give investors a portfolio of blue chip shares comprising 20 of the top companies listed on the Australian Securities Exchange.
The portfolio would currently include stellar performers BHP, Rio Tinto, Woolworths, Fosters, Telstra, The Commonwealth Bank of Australia, Suncorp Metway and Woodside Petroleum.
Macquarie will be responsible for the day-to-day running of each portfolio through its Private Portfolio Management division.
However, investors will have ownership of the underlying shares, giving them access to dividends and franking credits.
Macquarie will buy or sell shares to keep them in line with changes in the top 20 rankings.
The management fee is one per cent and there are no brokerage charges.
“[The MIS] provides an ideal solution for investors who are looking for exposure to some of Australia’s largest and most successful listed companies, but do not have the expertise or time to dedicate to managing a portfolio of shares,” Macquarie Private Portfolio Management head Damian Graham said.
The minimum investment is $50,000 but investors can fund half of their investment through a margin loan from Macquarie Investment Lending.
InvestSmart’s founder Ron Hodge said his company has a track record in helping investors save fees and offer them investments in Australia’s largest listed stocks in a manner that is easy to understand.
“Developing low-cost investment products was the next logical step,” Hodge said.
Fairfax Digital, the internet division of the media empire, bought Hodge’s Sydney-based managed fund internet company last month for $12 million.
