Adansonia’s Individually Managed Accounts Service
Overview
Adansonia’s Individually Managed Accounts (IMA) Service offers clients a portfolio management service tailored to each client’s needs and objectives. Each client’s portfolio is managed separately to all other clients', and managed in accordance to their investment objectives, asset mix preferences, existing investments, tax status and risk appetite.
Adansonia’s IMA clients can access most key asset classes. We select and manage equities directly, this is our core competency. This includes both international and domestic equities, and employs our proven and repeatable investment process. In cases where we select specialist manager products on behalf of our clients, in asset classes we don’t manage directly, we choose managers for which we have the utmost respect and consider fees for services delivered. Asset class exposures are purely a function of individual client objectives.
An IMA agreement allows investors to retain direct ownership of each asset in their portfolio, while appointing Adansonia as the investment manager to make portfolio decisions within their agreed tailored investment strategy and mandate. Every client portfolio will be unique, however Adansonia’s investment approach to each portfolio will always be consistent.
Our IMA clients have secure online access to their accounts providing full transparency at all times. With portfolio position and transaction reports available at will, and tax reports automatically generated periodically, clients avoid a lot of paperwork and personal administration.
Adansonia’s IMA service is available to individual investors, family offices, SMSFs, trusts, companies, not-for-profits and charitable organisations looking to invest $5.0million or greater. Lesser amounts may be accepted under certain circumstances. Clients must be classified as a wholesale investor. To be classified as a wholesale investor the person or entity must (i) have net assets of at least $2.5million, or a gross income for each of the last two financial years of at least $250,000 or (ii) be a professional investor. Please refer to the Corporations Act 2001, Volume 4: Section 761G, for the full definition (link here).
Performance
The strategies on which Adansonia’s IMA portfolios are based have very strong track records of outperformance. To request more detail on our historical investment performance please email us: enquiries@adansonia.com.au.
Fees
At Adansonia we are highly competitive on fees. We do not charge performance fees, or entry and exit fees.
Benefits of IMAs
Individually Managed Accounts (IMAs) are increasingly preferred by investors given the following advantages:
Each client’s portfolio is managed separately to all other clients', can be fully customised and managed in accordance to their investment objectives and preferences.
Investors retain direct ownership of all their assets such that all dividends, franking credits and other tax credits flow directly to them.
IMAs are an extremely tax efficient structure. There are no embedded tax liabilities; and tax losses are not trapped within a structure as is the case with trusts and managed funds. Each investor’s tax position is defined by the real transactions that occur on their directly held assets.
Given investors’ assets are not pooled with other investors' assets (as with a managed trust or fund), there is full flexibility to focus on after-tax returns. A transaction that makes sense for one investor may not be as effective for another on an after-tax basis.
IMAs are fully portable. As the underlying securities are held directly in the investor’s name they can easily transfer assets into or out of an IMA without actually disposing of any asset, thereby avoiding a capital gains tax events.
The investment manager does not hold any of the assets it manages for you. Your funds flow in and out of an account in your name which is established between the investor and their nominated administrator/custodian/broker. The investment manager simply advises the investor as to how each investment portfolio is constructed.
IMAs have excellent transparency. An investor can see the exact position and price of each security held in their portfolio at any time as well as all past transactions.
As IMAs are a service, the management fees can be tax deductable. Investors should consult their tax advisers to assess the potential benefit.
Investors also benefit from efficient portfolio administration, custody services, execution, settlement, portfolio reporting and tax reporting.
How to Invest
For a confidential discussion about Adansonia’s Individually Managed Accounts (IMA) Service please contact us on enquiries@adansonia.com.au.
To download the IMA Application Forms please click here.