Managed portfolios on HUB24

A managed portfolio (also known as a managed account or separately managed account (SMA)) is a professionally managed collection of investments held on behalf of your client. Typically structured as a non-unitised registered managed investment scheme, a managed portfolio allows your clients to access diversified investments via their superannuation or an investment platform. 
  
Unlike traditional managed funds where clients hold units in a unit trust, a managed portfolio enables your clients to own a beneficial interest in the underlying assets. This structure offers greater transparency and control, as clients can see exactly what investments they hold within the portfolio. Managed portfolios also provide tailored investment solutions, which can help you, as an adviser, align investment strategies with your clients’ specific goals, risk tolerance, and preferences. 

Managed portfolios or Separately Managed Accounts (SMAs) offer key advantages for advisers, including greater transparency by providing a clear view of the underlying holdings. This helps advisers explain portfolio changes and strategies more easily to clients, improving clarity and trust. 
  
Managed portfolios also offer flexibility, allowing portfolios to be tailored to meet individual client preferences, goals, or risk levels. Advisers can adjust holdings, including swapping securities or holding cash, to accommodate ethical or social preferences. 
  
Additionally, managed portfolios reduce administrative burdens by automating portfolio changes in line withstanding instructions, saving time and minimising paperwork. With professional portfolio management, client investments are actively monitored and adjusted by experienced managers, ensuring portfolios stay current and aligned with expert guidance. 

A managed fund operates as a unitised trust where investor funds are pooled together and managed by professional asset managers according to a specific investment mandate. Investors in a managed fund own units in the trust, which represent their share of the pooled assets, rather than holding a direct interest in the underlying investments. 
  
In contrast, a managed portfolio allows investors to typically own a beneficial interest in the underlying assets when held in an investment account, giving them more direct exposure to the specific securities. In a superannuation account, the Trustee generally retains the beneficial interest on behalf of the investor. This structure provides greater transparency and control over the individual investments compared to the pooled structure of a traditional managed fund. 

SMAs and managed portfolios allow advisers to effectively manage client risk and returns through customisation and diversification. These portfolios can be tailored to meet individual client needs by adjusting holdings, such as swapping securities or holding cash. This flexibility is particularly useful for addressing specific ethical, social, or employment-related restrictions on certain investments. Managed portfolios can include a variety of assets, including direct securities (both global and domestic), ETFs, LICs, and managed funds, and can be structured to align with different risk levels or investment goals—ranging from single-sector strategies to fully diversified options. 
  
In addition, managed portfolios provide tax optimisation benefits, as tax obligations are calculated individually rather than pooled across investors. HUB24 offers the ability to model and select tax outcomes that best suit the client’s situation, potentially reducing tax liabilities. These savings can then be reinvested, helping clients grow their wealth more effectively over time.