A managed portfolio (also known as a managed account or separately managed account) is simply a collection of investments, generally held through a non-unitised registered managed investment scheme (Scheme), that are managed on your client’s behalf by a professional portfolio manager. They can be accessed through a client’s superannuation, or through an investment platform.

While this concept is not new, managed portfolios offer a range of benefits and efficiencies which cannot be achieved by traditional model portfolios or managed funds.

• When your clients invest in a managed portfolio through their investment account, they typically own a beneficial interest in the underlying assets (excluding managed fund holdings), rather than owning units in a fund unit trust (as is the case with a managed fund).
• When your clients invest in a managed portfolio through their superannuation account, the Trustee generally retains the beneficial interest of the underlying assets, on their behalf.

Just like the direct investments held in either your clients’ superannuation or investment account/s, the legal interest in the underlying assets is held by the appointed custodian or sub-custodian(s). This structure gives you and your client greater levels of transparency, flexibility, and control, and may allow you to optimise cost and tax outcomes for their account.

Not all managed portfolios are the same

Managed portfolios can be typically delivered as a mix of single sector strategies (e.g. Australian equities, international equities) or as complete diversified multi-sector strategies (e.g. conservative, balanced, growth, which may include a mix of cash, Australian and international listed securities, ETFs and ETPs, managed funds, and other managed portfolios).