Tap into Australian shares with a separately managed account
Whether your clients need a cost-efficient, passive exposure to Australian shares or an active exposure that aims to generate above benchmark returns, the range of SMA portfolios managed by First Sentier Investors give advisers the building blocks needed to construct an efficient and diverse equities exposure.
Our experts have proven track records successfully managing a diverse range of funds, with A$13.6 billion* under management across our highly regarded active Australian equities teams and $A29.4 billion* in systematic strategies globally.
Falling under the managed account product umbrella, a SMA is a customisable share portfolio where assets are selected by a professional investment manager, but owned directly by the investor. Advisers can access our professional investment expertise through the range of SMA portfolios managed by First Sentier Investors on select platforms. These SMAs are operated by a SMA provider and are not a direct investment into our strategies or managed funds.
Why are more advisers turning to SMAs?
Professional and responsible security selection
Give your clients the ownership benefits of investing directly in the share market while retaining the active stock selection and risk management skills of a professional investment manager.
Spend more time on what matters for your business
SMAs can create less administration compared to direct equities and managed funds, freeing advisers’ time to focus on clients and growing their practices.
Add more value for your clients
Advisers can customise the SMA portfolio for their clients’ individual circumstances, whether it be excluding particular stocks from the portfolio or planning for tax outcomes.
Offer your clients transparency
Clients have full visibility of their portfolio holdings while advisers benefit from a reduced administration burden.
The building blocks for an exposure to Australian shares
An investment in the First Sentier Investors Top 20 Index Portfolio is a low cost, efficient way to gain access to the broader share market. The S&P/ASX 20 Accumulation Index covers more than 50% of the S&P/ASX 200 Index by market capitalisation across eight of the eleven GICS sectors in the broader index. Compared to an investment in the S&P/ASX 200, historical total returns of an investment in the S&P/ASX 20 have been similar and dividend yields comparable - however franking credits have been consistently higher. Because stocks in the S&P/ASX 20 are highly researched, a passive, low cost strategy in this segment can effectively be paired with active strategies operating in less efficient segments of the market.
The First Sentier Investors Top 20 Index Portfolio is managed by Senior Portfolio Manager Robin Castles, from our Realindex team. Established in 2008, our Realindex team manages $A29.4 billion* in systematic and passive equities strategies.
*FUM as at 31 December 2019.
The First Sentier Investors Concentrated Share Portfolio contains a selection of our highest conviction growth stock picks. We look for companies with higher earnings potential than industry peers and the ability to reinvest in their business above their cost of capital. We draw on extensive bottom-up research and in-depth industry analysis to uncover companies with strong return on invested capital.
The First Sentier Investors Concentrated Share Portfolio is managed by Head of Australian Equities Growth Dushko Bajic, who leads one of the largest and most experienced teams in the domestic share market. Established in 1989, they manage over A$10.6 billion* using an active investment approach.
“We believe growing companies, which generate consistent returns and can reinvest above their cost of capital, provide the greatest shareholder value. Our active, bottom-up investment process is robust and has a proven long-term track record of outperformance over the full investment cycle.” - Dushko Bajic, Head of Australian Equities, Growth First Sentier Investors
*FUM as at 30 June 2018.
Tapping into the broader opportunity set of the S&P/ASX 300, the First Sentier Investors Ex-20 Share Portfolio contains a selection of our Australian Equities Growth team’s high conviction stock picks outside the S&P/ASX 20 Index. As we don’t invest in the financials and resources companies that dominate the top 20 stocks of the Australian share market, this portfolio can help diversify a top-heavy Australian share portfolios.
The First Sentier Investors Ex-20 Share Portfolio is managed by Head of Australian Equities Growth Dushko Bajic, who leads one of the largest and most experienced teams in the domestic share market. Established in 1989, they manage over A$10.6 billion* using an active investment approach.
“We use our extensive network of contacts, including company management and their unlisted competitors, suppliers and industry experts, to gain insight into share price drivers. The broader market does not undertake the same in-depth industry analysis, giving us a potential advantage in identifying attractive investment opportunities.” - Dushko Bajic, Head of Australian Equities, Growth First Sentier Investors
*FUM as at 30 June 2018.
*FUM as at 30 June 2018.
Investors in an individual SMA are not able to invest directly into a CFSMIL strategy or portfolio (Portfolio). Any past performance information provided will reflect the performance of a Portfolio and not any individual SMA. Returns will differ for an individual SMA compared to the Portfolio depending on matters such as inception date, fees and brokerage costs payable, adherence to model portfolio weights, portfolio implementation timing and fees payable. Any past performance information with respect to the Portfolio will not take into account any taxes that may be payable in connection with any returns or gains made from the Portfolio.