Max Cappetta
The Separately Managed Account (SMA) Model Portfolio of boutique asset manager, Redpoint Investment Management, has been added to investment and superannuation platform, HUB24.
According to Redpoint chief executive and senior portfolio manager, Max Cappetta, the availability of Redpoint’s SMA on HUB24 provides advisers and their clients with access to Redpoint’s investment expertise together with HUB24’s managed portfolio capability.
“Investors are becoming more sophisticated and with a preference for direct ownership of their share portfolios. This has many benefits including that investors’ have full tax transparency, and holding the shares directly means any dividend payments flow directly into the investor’s account as soon as the company elects to pay a dividend.
“We purpose-built this strategy for an adviser group some six years ago, and encouragingly, it now has far broader support from investors Australia-wide.
“The SMA structure delivers all the benefits of direct share ownership for investors and their advisers coupled with Redpoint’s investment expertise for building and managing effective portfolio solutions for investors,” he said.
The Redpoint SMA Model Portfolio has delivered a gross income yield of 6.04 per cent per annum since its inception in 2015 by holding a diversified portfolio of approximately 40 better quality companies. Redpoint’s approach to stock selection is focused on ESG sustainability metrics and also incorporates the manager’s views on quality, financial strength and growth.
“Our stock selection is purposefully long-term and this has meant the SMA Model Portfolio has low turnover, which directly supports the tax effective capture of income and wealth accumulation,” he said.
Mr Cappetta said investor adoption of SMA model portfolios has grown in recent years, with the range of strategies available via SMA expanding beyond domestic equities to now include global equities, fixed income and other direct assets.
“The broadening of the range of available strategies is allowing investors to use an SMA structure for larger proportions of their portfolios and, combined with the tax benefits and share ownership, this trend is set to continue for some time,” said Cappetta.
The Redpoint SMA Model Portfolio currently has over $230 million in Funds Under Management, and is also available via the MLC Navigator and Macquarie Wrap investment platforms.
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