While managed accounts have been around since the mid-nineties, they have really only caught on in recent years as an alternative to managed funds.

Indeed, unlike managed funds, investing in a managed account allows investors to have complete visibility of the investments held in their portfolio.

Managed accounts offer many advantages over managed funds, as outlined in the Table below, but not all managed accounts are the same, although some would have you believe otherwise!

When describing managed accounts, they are often referred to as individually managed accounts (IMA), separately managed accounts (SMA) or managed discretionary accounts (MDA).

We take a look at the options below and compare these managed accounts for you.

Feature IMA SMA MDA Managed Funds
Professional fund management YES YES YES YES
Portfolio constructed from the time you invest YES - - -
Customised portfolio construction YES - - -
Client retains beneficial ownership YES YES YES -
Minimises portfolio rebalancing YES - - -
Internally geared mandates YES - - -
Fees tailored to investments YES - - -
Access via a Product Disclosure Statement YES YES - YES
Low minimum investment YES YES - YES
Corporate actions administered YES YES YES YES
Tax reporting YES YES YES YES
Transparency YES YES YES -
Ability to view underlying shares YES YES YES -
In specie transfers YES YES YES -
Avoid embedded capital gains tax YES YES YES -
Netting of transactions YES YES - -
Exclude stocks from portfolio YES YES YES -
Tax efficiencies YES YES YES -

Maximise your returns by investing in individually managed accounts

In selecting investments to buy and sell, Wealth Within focus on securities within the S&P/ASX 300 (depending on the investment strategy you select) which our research and investment team believe can deliver strong returns over the medium to long term.

This strategy is based on our philosophy which combines 'timing the market' with 'time in the market' to seek to maximise the return on your investments.

The benefit to you is that you will not be buying into an existing and what may be a less relevant and less timely portfolio.

In actively managing your investments, Wealth Within works towards eliminating the shares that continue to underperform and consequently impact on the potential performance of your overall portfolio return.

If you understand this, then the only real question to ask yourself is:

Would I prefer my investments to be timed into and out of the market, eliminating the non-performing periods when the market trends down or sideways or would I prefer to be fully invested no matter what the market condition?

Usually only reserved for sophisticated investors with $500,000 or more to invest, the Direct Equity Individually Managed Account Service now enables retail investors to tap into the benefits of individually managed accounts. With an investment from as little as $50,000, you now have a real alternative to investing in managed accounts.


Investment management with a real difference

When investing in a Separately Managed Account (SMA) or a Managed Discretionary Account, most managed account providers distribute your money into a predefined selection of stocks (and/or managed funds) known as a modelled portfolio, at the time you invest, just like a managed fund.

So while you receive all the benefits of share ownership, the performance of your portfolio may suffer, or worse, your capital may erode if the stocks have already realised their growth potential and are now under performing. And if your investment manager employs investment or trading strategies such as dollar cost averaging, which is common in the industry, it can result in the erosion of your capital, particularly in a bear market.

When you invest in the Direct Equity Individually Managed Account Service with Wealth Within, each portfolio is individually customised based on the investment strategy you select to take advantage of opportunities at the time you invest. We also continue to actively manage the risk to your investments to minimise the erosion of any profits or capital during sideways and downward movements in the share market.

Partner with an experienced and qualified investment manager

If you want to experience what it's like to partner with an investment company who treats you as an individual, while making your money work hard for you, then we look forward to the opportunity of discussing how we can support you to achieve your financial goals in the stock market.

To speak with a Client Services Consultant call 1300 858 272 or Melbourne direct on (03) 9290 9999.

To learn more about our Individually Managed Account Service click here.

Alternatively, if you want to take a more active role to managing your investments- learn more about our Trading Courses.




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