If you haven’t used an SMA or model portfolio as part of your clients’ investment strategies before, here is why the answer to the question should be yes.
Savvy advisers today are increasingly moving towards Separately Managed Accounts (SMAs) or model portfolios within their business as a key investment strategy, and a way of reducing administration and providing more consistent returns for clients.
A model portfolio contains managed funds and equities that are grouped together to provide an expected return with a corresponding amount of risk. Models will differ in investment emphasis (such as ASX top 20, Australian shares, property securities and so on), or they can be diversified to meet certain risk/return objectives.
Their popularity in recent years is due to the following reasons:
DIVERSIFICATION AND CHOICE
PROFESSIONAL INVESTMENT MANAGER EXPERTISE
OWNERSHIP OF UNDERLYING ASSETS AND MANAGEMENT OF TAX POSITIONS
COMPETITVE FEES AND BROKERAGE
Powerwrap has a range of both domestic and international model portfolios from leading managers in the industry.
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