The historical performance of growth assets can be a reasonable indicator of what is going to perform well for your client over the long term. Looking at the last two decades, international and Australian equities outperformed all other major asset classes. The chart below shows the growth of $1000 invested since January 1993 in cash, Australian bonds, Australian listed property, Australian and international shares.
Invest to grow using a Managed Account
When investing in equities, your client may want to consider the benefits of managed accounts versus managed funds. With a managed account, your client can retain the beneficial ownership of the underlying securities (as opposed to a managed fund). They also have the ability to delegate the day-to-day investment decisions to professional investment managers.
Separately Managed Accounts (SMAs) and Individually Managed Accounts (IMAs) both offer clients a professionally managed direct share portfolio, but IMAs offer individualised attention for each investor’s unique needs.
- Separately Managed Account (SMA): An SMA uses a model portfolio basis. Investment decisions are made in line with a specific investment mandate, around a common objective for all investors.
- Individually Managed Account (IMA): An IMA can be tailored to the individual’s unique circumstances, such as implementing stock or sector restrictions to suit a client. This added flexibility requires a portfolio manager to execute individual trades on the client’s behalf.
Who is this strategy for?
An invest-to-grow strategy is suitable for a wide range of investors ranging from starters, to sophisticated investors, to SMSFs. The strategy involves the use of a Managed Account, which might appeal to clients looking for transparency, professional management and tax effectiveness. With regards to an IMA, the additional cost of running one often means that a higher initial investment is required (when compared to an SMA), and will therefore suit clients with a larger investment to make.
Features and benefits of using a BT Managed Account
Clear and concise reports
Comprehensive administration and consolidated reporting makes it easy to follow what your client’s portfolio is doing.
Beneficial ownership of listed securities
Clients can see the shares purchased on their behalf and receive the potential benefits of income, dividends, franking credits and potential capital growth from direct ownership.
Access to expert investment professionals
Get access to professional fund managers who undertake extensive research to create model portfolios. Models are constructed and dynamically managed based on established valuation principles.
Professional portfolio management based on investment needs
The team of specialists and portfolio managers will work with you to structure a diversified, tax effective investment portfolio based on the chosen investment strategy.
Around the clock access
Clients have access to their portfolio details online 24/7 to check the performance valuations, trading activity and more.
Possible options for BT Managed Accounts
- BT Elect Portfolio SMA
Invest a minimum of $50,000 in an investment solution designed to provide direct exposure to a professionally managed portfolio of Australian listed securities and property.
- BT Aspire Portfolio IMA
Invest a minimum of $500,000 in a specialised investment management service designed to provide direct exposure to a professionally managed portfolio of Australian listed securities and access to other asset classes.
- BT Private Portfolio IMA
Invest a minimum of $1 million in a bespoke investment solution designed to provide an individualised portfolio management service implementing the investment strategy that you determine for your Clients.