Folkestone Maxim A-REIT Securities SMA

The Folkestone Maxim A-REIT Securities SMA actively invests in a diversified portfolio of predominantly Australian listed real estate investment trusts and real estate related securities. The SMA has exposure to a broad range of real estate assets including, but not limited to, retail, residential, commercial, industrial and real estate related social infrastructure.

Mason Stevens

Mason Stevens was established in 2010 by experienced individuals who saw an opportunity to provide Australian investors with a more sophisticated investment offering through managed accounts. In 2012, Mason Stevens merged with 2020 Funds Management to form the Mason Stevens Group.
Through an experienced and professional team of people, Mason Stevens provides both advice and execution capabilities across domestic and international equities and fixed income, equity derivatives (exchange traded options and OTC options), hybrids and bonds.

Managed Account Structure

Under an SMA, each investor has direct or beneficial ownership of the individual underlying investments in their portfolio rather than taking a share of a pool of assets via issued units. The investor therefore enjoys the tax advantages that direct ownership offers relative to the unit trust structure.

Mason Stevens Account Enquiries

Head Office
Level 21
9 Castlereagh Street
Sydney NSW 2000
Tel: 1300 98 88 78
Website: www.masonstevens.com.au

Managed Discretionary Account (MDA)
Operator and Administrator

Mason Stevens Limited
ACN: 141 447 207
AFSL: 351578

Separately Managed Accounts (SMA)

An SMA is a customised securities portfolio where the assets are owned by individual investors. An investment is allocated across one or more available investment models, which will determine the portfolio allocation between securities. The investment model is provided by an investment manager (such as Folkestone Maxim) and will buy and sell securities in much the same way that managed funds buy and sell securities to achieve their risk and return objectives. One way to look at separately managed accounts is as an alternative to managed funds. Investors are able to utilise the collective knowledge and intellectual property of an experienced fund manager (such as Folkestone Maxim) and have greater transparency and flexibility by investing in securities. SMAs are non-unitised managed funds.

Main Advantages of a Separately Management Account

A separately managed account is professionally managed like an individual portfolio with many key advantages:

  • the securities in the account are visible and portable just as they would be if they had been purchased directly
  • the underlying securities are owned, not units in a fund.
  • as a result, the investor can manage the tax position.
  • SMAs offer one or more model portfolios to choose from so investors are able to create a customised and diversified portfolio of securities.
  • consolidated reporting is provided online with complete and concise reports available at anytime. All the paperwork and administration is taken care of by the SMA provider, reducing the administrative burden on investors.
  • low minimum investment requirements and low brokerage costs allow SMA investors to more effectively diversify their portfolio and dollar cost average into direct securities.

For more information on SMA’s please click on the topics below:
A beginners guide to understanding separately managed accounts
Separately managed accounts glossary
SMH article: Singing in tune with the big guns

Why Invest in an SMA?

Separately managed accounts (SMA) are described as managed funds on steroids as they combine many of the benefits of investing in a managed fund with the benefits of investing in direct securities. Typically, you would apply for an account in a separately managed account, just as you would apply for units in a managed fund.
Importantly, the securities in the account are visible and portable just as they would be if they had been purchased directly and the underlying securities are owned, not units in a fund. As a result, the investor can manage the tax position and receive dividends and franking credits.

There are other key advantages of a separately managed account:

Beneficial ownership

Typically, you would apply for a separately managed account just as you would apply for units in a managed fund. But as a separately managed account holder, you actually own the underlying stock in your portfolio, i.e. you retain what is called beneficial ownership of the underlying securities.

Professional management

Separately managed accounts generally have a responsible entity in the background with custodial and administrative responsibility. Some models will be actively managed, while others will track an index.

Cost effective

Separately managed accounts take advantage of new technology and online delivery can result in lower management fees than managed funds. Fees can vary across products and should be checked closely. Generally the fee structure includes an administration/management fee, performance fee (depending on the models invested in), adviser fees (unless you choose a direct access option), as well as brokerage. In addition, investors can take advantage of the fund manager’s buying power by accessing institutional brokerage rates.

Consolidated reporting and simplified paperwork

Buying direct shares would normally generate significant paperwork. Investing through a separately managed account provides you with consolidated reports on the entire portfolio online at any time to help simplify the preparation of the annual tax return. In addition the tax cost base of shares is automatically adjusted with each trade and dividends and corporate actions are automatically recorded.
For more information how Mason Stevens operates their SMA offerings for direct clients and financial advisers, please see the documents below:

Mason Stevens Client Brochure
Mason Stevens Adviser Brochure

Whilst Folkestone Maxim is the Investment Manager, and provides the model portfolio for the Folkestone Maxim A-REIT Securities SMA, all enquiries on establishing an SMA should be made directly with Mason Stevens. They can be contacted on the details below:

Mason Stevens Account Enquiries

Head Office
Level 21
9 Castlereagh Street
Sydney NSW 2000

Postal Address:
GPO Box 5003
Sydney NSW 2001

Tel: 1300 98 88 78
Website: www.masonstevens.com.au
Email: info@masonstevens.com.au

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