Aviva Investors has seen an overwhelming response from financial advisers to its Separately Managed Account (SMA) offering. Since being released in November last year, Aviva Investors Direct SMAs have been added to approximately 100 Approved Product Lists (APLs), including several multi-national dealer groups.
Aviva Investors Direct SMA product offering was developed following extensive consultation between Aviva Investors and key stakeholders. Overwhelmingly, advisers called for a product that took into account the regulatory and fee pressures being placed on their businesses. In particular, emphasis was placed on providing advisers with a wholesale priced, direct share offering for their individual retail and SMSF clients.
“Aviva Investors has developed a product offering that meets the needs of investors and has provided more transparency, at a lower cost to clients. The response since being launched late last year has proven the gap in the market for this type of product,” said Aviva Investors Head of Retail, Andrew Peterson.
“The Aviva Investors Direct SMA product provides the SMA benefits of transparency and tax effectiveness, via two low cost, actively managed portfolios designed to integrate into an adviser’s business. From the response we have received, it is obvious these offerings resound with investors,” Mr Peterson said.
SMAs provide investors with beneficial ownership of the underlying stocks in the portfolio and investors therefore receive many of the benefits of direct share ownership – along with the advantage of having their individual accounts managed by a professional investment manager.
As part of the Direct SMA offering, Aviva Investors provides access to two equity model portfolios. The Dividend Builder Model Portfolio designed for income focused investors and the Core Opportunities Model Portfolio designed for capital growth focused clients.
The Dividend Builder Model Portfolio:
- Low turnover, high yielding portfolio – well suited to the SMA environmentAviva, investment, investment
- Emphasis on securing franked income and minimising stock turnover
- Benefits from a large, well resourced and experienced investment team
- Invests in high yielding Australian shares that will grow their dividends over time
- Low management fees
The Core Opportunities Model Portfolio:
- Invests in an unconstrained portfolio of top investment ideas
- Concentrated portfolio of 15 to 25 stocks
- High conviction, large-cap focus
- Low management fees
- Targets high levels of capital growth for long term investors
