Unveiling individually managed accounts

Published in the Independent Financial Advisor Magazine, March 2010 by Vishal Teckchandani

Boutique investment firm Wealth Within has created an individually managed accounts (IMA) product that can accept $50,000 as a minimum investment and can also be white labelled by dealer groups.

Direct Equity Managed Account Service (DEMAS) allows investors to invest in Australian stocks through multiple mandates.

Some of the profiles involve gearing and also use derivatives to hedge against market volatility and may not be 100 per cent invested, depending on market conditions.

A team of five analysts employed by Wealth Within manages the portfolios.

The securities within each IMA are individually and beneficially maintained for each client.

There is no inherited capital gains tax within IMAs and investors can view the shares they own and also receive franking credits.

The ongoing fee on the IMA is dependent on which portfolio the client chooses and would be under 2 per cent a year for amounts up to $250,000.

"Wealth Within can accept minimum investments of $50,000 whereas others generally offer this style of service to wholesale and sophisticated investors with a much higher minimum,"

Wealth Within marketing director Colin Owens said. 

"This is because we have developed stated-of-the-art technology that allows us to aggregate trades and to do it cost effectively under one HIN (holder identification number)."

DEMAS has $50 million under management and Owens said Wealth Within was close to signing whitelabel deals with several dealer groups, including one firm with more than 400 planners.

"With white labelling we actually have a dial down for the dealer group to take the amount that we negotiate with them as part of the administration fee," Owens said.

"We provide dealer groups with all the back-office and administration support."

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