Investment Management Accounts (IMAs) and Separately Managed Accounts (SMAs) are two investment vehicles that offer customised portfolio management services to investors.
Both are designed to provide professional asset management while allowing for personalized investment strategies, catering to individual risk tolerances and financial goals.
Investment Management Accounts (IMAs) are professional investment accounts managed by financial institutions.
They provide clients with a diversified investment strategy tailored to their financial objectives.
IMAs typically pool funds from several investors but are often customised to reflect individual preferences.
Separately Managed Accounts (SMAs) are investment accounts where a professional portfolio manager invests directly on behalf of the account holder.
Each account holds individual securities, providing greater transparency, flexibility, and control over investments compared to pooled vehicles.
Types of IMAs include:
Types of SMAs include:
There are three main features of IMAs and SMAs:
There are three main risks of investing in IMAs and SMAs:
When comparing IMAs and SMAs, investors should consider:
Investors can access IMAs and SMAs through:
IMAs typically have lower minimums, while SMAs often require $100,000 or more.
Yes. Both are subject to regulations, but differ in how they are managed.
In both cases, fees can be flat, tiered, or performance-based, depending on the manager.
Yes. Both offer high levels of customisation, especially SMAs.
SMAs provide tax benefits through their direct ownership of securities, enabling better tax-loss harvesting.
SMAs offer more transparency than IMAs since investors own the individual securities directly.
IMAs typically allow easier access to investors’ cash, whereas SMAs may have restrictions on withdrawals.
While not mandatory, consulting a financial advisor is advisable for tailored investment strategies like IMAs and SMAs.
IMAs and SMAs offer unique advantages since they are both personalised investment strategies with professional management.
Understanding their differences, types, features, associated risks, and methods of comparison can help investors make informed decisions.
These vehicles provide varying degrees of customisation, transparency, and management costs, making it essential for investors to align their choice with their individual investment goals and needs.
The Burrell 20 aims to achieve capital growth over the long term with correlation to the S&P/ASX20 Accumulation Index also providing income through the receipt of franked dividends.
We have a pure fixed income focus and construct bespoke portfolios/accounts that cater for each client’s individual fixed income investing objectives including liquidity, credit, duration, and diversification (Wholesale Investors Only).
Invest alongside Market Matters and benefit from our high-performing, active approach.
These portfolios hold only Australian or International shares respectively, and do not feature Tactical Asset Allocation, meaning they are always fully invested and are not ‘de-risked’ at any time.
