Alison Telfer

UBS Asset Management (UBS) has partnered with CBRE Investment Management, Listed Real Assets LLC, part of CBRE Investment Management (CBRE) to launch a Concentrated Global Property Model on the Praemium SMA. The model is the first SMA portfolio to provide investors with an actively managed portfolio of global listed property securities in the Australian market, with seed capital from private wealth firm, Emanuel Whybourne & Loehr (EWL).

The strategy uses CBRE’s proprietary multi-step investment process to identify 25-45 compelling global property securities across a range of geographic and economic sectors.

Country Head of UBS Asset Management for Australia & New Zealand, Alison Telfer said, “To launch this Global Property SMA is a logical next step for us given our long-standing partnership with the CBRE investment team through our four existing funds, and UBS’ expertise in Managed Accounts globally.

“Additionally, this launch comes at an opportune time. Whilst REITs, like most asset classes, have experienced volatility throughout 2022, it’s our view that valuations have become dislocated from the resilience shown in unlisted property, and are therefore presenting an attractive entry point for long term investors.”

CBRE Investment Management Portfolio Manager, Justin Pica, commented, “In the current market environment of high inflation and volatility and with the likeliness of reduced economic growth over the coming year, it’s important to have a widely diversified portfolio. Historically REITS have outperformed equities during periods of high inflation and offer the opportunity for attractive returns relative to equities and an attractive yield relative to bonds.

“Our proven investment process aims to add value through active stock selection and robust risk management and portfolio construction and is backed by in-depth fundamental market knowledge and investment expertise that leverages the strength and in-depth local private market research platform of CBRE.  We are delighted to partner with UBS to launch this strategy to Australian investors with a leading investment platform such as Praemium.”

EWL Partner, Ryan Loehr, remarked, “We strive to source the best investment solutions available for our clients, and as such, we’re thrilled to seed the first global property SMA with two of the world’s heavyweights in Asset Management, UBS and CBRE. We’re bullish on listed property right now given valuations are trading at rarely seen levels below Net Asset Value so we’re pleased that Praemium have continued to lead the market in terms of managed account innovation with the launch of this product”.

Praemium’s Head of Investment Managers and Governance Damian Cilmi adds, “We are pleased to be the first platform to offer the UBS CBRE Concentrated Global Property Model and to provide those investors seeking exposure to global property the opportunity to achieve this within an SMA. With a highly experienced investment team in CBRE Investment Management, and a proven track record in real assets, they are a wonderful addition to the menu of high-quality investment managers we provide our clients access to via the Praemium SMA.”

The post UBS CBRE launches first Global Property Model on Praemium platform appeared first on AdviserVoice.

Charles Hamieh

Leading investment platform provider Praemium has added ClearBridge Investments’ Developed Markets Infrastructure Income Model Portfolio to the Praemium Separately Managed Accounts (SMA) menu, providing greater access to the strategy.

Drawing on ClearBridge Investments’ strong global listed infrastructure capabilities, the Model Portfolio has been designed to produce attractive and stable returns by investing in an actively managed portfolio of infrastructure securities in developed markets.

The range of infrastructure sub-sectors in the portfolio includes gas, electricity and water utilities, toll roads, airports, rail and communications infrastructure throughout developed markets.

Top holdings in the portfolio include British multinational gas and electricity utility National Grid, US energy company Public Service Enterprise Group, Spanish electric utility Iberdrola, Scottish energy company SSE plc and toll road company Atlas Arteria.

As at 28 February 2022, the ClearBridge Developed Markets Infrastructure Income Model Portfolio produced a gross return of 21.0% since its inception**, compared with the 10.5% return for its benchmark, the OECD G7 Inflation Index + 5.5%.

Portfolio Manager Charles Hamieh says infrastructure is at the centre of several long-term thematics, including COVID recovery stimulus programs, decarbonisation and the transition to net-zero, transport efficiency and digital connectivity.

Hamieh says that in the current environment exposure to infrastructure assets can help protect against the impact of rising inflation.

“For a lot of infrastructure assets, inflation is a pass-through. If you look at toll road or airport operators, they will increase tariffs or tolls with inflation. If you look at a utility, there is either a  direct or indirect pass-through of inflation in its revenue model. Inflation is a positive in that sense.

“There will be increases at the cost line but the net cashflow position is neutral to positive,” Hamieh says.

Praemium’s Head of Investment Managers and Governance, Damian Cilmi says: “As we enter a higher inflation environment, having access to portfolios that offer the opportunity for diversification and some protection from inflation will be increasingly important for investors.  We’re pleased that Praemium is one of the first SMAs to offer advisers and their clients access to ClearBridge Investment’s infrastructure portfolio.“

Ryan Loehr, Partner at leading wealth advisory firm Emanual Whyborne has welcomed the addition of the ClearBridge model portfolio to Praemium.

“We recognised the likelihood of accelerating inflation post record levels of stimulus and the impact this would have on valuations. ClearBridge, offers listed infrastructure solutions that offer our  clients more stability than traditional equities.

“We view infrastructure as a preferred asset class and we regard ClearBridge as market leaders in this space. ClearBridge’s fund performance , particularly over the last year and during the market sell-off since mid-November is a testament to their experience and capabilities. Direct, convenient access to their model income portfolio via this leading platform is a positive for advisors and clients alike in our view,” Mr Loehr said.

The post Praemium adds ClearBridge Developed Markets Infrastructure Income Model Portfolio to SMA platform appeared first on AdviserVoice.

Damian Cilmi

Fidelity International has launched its first Separately Managed Account (SMA), in partnership with Praemium, one of Australia’s largest providers of SMAs.

The mandate is an actively-managed Australian equity model managed by Kate Howitt. Fidelity has been working with Praemium and a mutual long-term client for some time to bring the right SMA solution to the Australian market.

Damian Cilmi, Praemium’s head of investment managers & governance, said: “Praemium is committed to providing its clients with access to high-quality managers and investment options. As one of the largest, most experienced global asset managers, Fidelity International recognises the importance of offering managed account solutions to meet the diversified and growing needs of investors and we are delighted to be their platform of choice for their first SMA.”

Simon Glazier, head of wholesale sales at Fidelity, said: “The SMA structure makes sense for the right client because investors own the shares they’re invested in which can offer tax benefits but don’t have administrative burden of investing directly in the stock market. At the same time, they’re benefiting from the expertise and research resources of a professional manager.”

The launch is Fidelity’s first foray into the Australian SMA market and opens up a new channel for investors to access Fidelity’s extensive global research capability.

“Fidelity is uniquely positioned to offer a broad set of services across asset management thanks to the breadth of our business and global footprint,​” said Fidelity Australia’s managing director, Alva Devoy.

“By offering these new capabilities, we can develop stronger, deeper relationships with our clients.”

The post Fidelity International announces first actively managed model portfolio available to clients appeared first on AdviserVoice.

Leah Willis

In response to growing investor and adviser demand, Praemium has significantly enhanced its approach to Environmental, Social and Governance (ESG) with new ESG screening and customisation platform functionality and the addition of the Australian Ethical Australian Shares Portfolio to the Praemium SMA.

In a platform industry first, Praemium has partnered with leading ESG research house Sustainalytics, to integrate their ESG research and analysis into the platform allowing advisers to tailor portfolios to their clients’ specific ethics and values through bulk stock exclusion.

Managed accounts have always allowed advisers to place holding exclusions on the platform and many have utilised it for ESG purposes. This single stock blocking approach can be time consuming and require ongoing research and updating of preferences to deal with changes at the stock level.

Advisers using Praemium’ integrated Managed Accounts Platform will be able to automatically screen their clients’ portfolios against nine key screening criteria, including three fossil fuel screens, alcohol, tobacco, gambling, adult entertainment, animal testing and controversial weapons, providing a scalable way to satisfy their clients’ ESG preferences and ensure ongoing monitoring.

Praemium has also added the Australian Ethical Australian Shares Portfolio to the Praemium SMA. This is the first time this portfolio has been accessible via a Separately Managed Account and offers the opportunity to invest in an actively managed, diversified Australian share portfolio of companies selected for their social, environmental and financial credentials. The portfolio is centred around the 23 principles of the Australian Ethical Charter that guides its investments in companies that have a positive impact on the planet, people and animals and avoids companies that engage in harmful products or practices. The new offering adds to the growing list of ethical investment options Praemium offers.

Australian Ethical’s Leah Willis commented “Australian Ethical is already well known for our ethical leadership and we’re excited to make this available to advisers in an SMA together with Praemium.

“With Australian’s increasingly wanting to know where their money is invested, our partnership with Praemium offers a fully transparent portfolio underpinned by more than 30 years of ethical investing experience.”

Praemium’s Head of Investment Managers & Governance Damian Cilmi commented “The growing interest in ethical investing is only likely to increase as investors look for ways to minimise their environmental footprint. This offers a real engagement opportunity for informed and well-prepared advisers to provide advice and support to help investors align their investment goals with their personal ethics. Praemium’s new enhancements provide advisers with a variety of options to meet the ethical considerations of their clients whether that is building bespoke custom portfolios, utilising an SMA with customised screening services or investing in specialised ESG strategies. “

The post Praemium ESG options a platform industry first appeared first on AdviserVoice.

Damian Cilmi

Financial advisers may need to factor in how a managed account trades on behalf of their clients in order to realise the full benefits of a personalised managed portfolio, according to Ralton Asset Management, one of Australia’s longest running separately managed account (SMA) investment managers.

In a podcast hosted by Praemium released earlier this week, Ralton Portfolio Manager Will Riggall described the many moving parts when an SMA investment manager engages with platforms to conduct trades on behalf of financial adviser clients.

It’s when the ‘rubber hits the road’ in trading that investors can extract maximum benefits of moving to an SMA – but often these factors are either not clearly understood nor at the top of list in the process of selecting an SMA investment manager.

Will said “the key to giving investors the maximum benefit of SMA is to trade swiftly and remove the performance slippage that may occur by delaying trades after an investment decision is made. It’s also imperative that any trade does not constitute a high volume that it impacts the market price the investor receives.”

Communication about trades – ideally when it occurs – was also considered important, but that is on the basis that the fundamental principles above are observed in the first place.

Will suggested that one of the common impediments to swift trading and lower-volume trades is often due to SMA managers running large unit trusts alongside SMA’s. This can then cause a range of conflicts that need to be managed: including the order of trades between unit trust and SMA investors, how closely the SMA and the unit trust match the actual ideal portfolio, whether the investor communication is based on the unit trust or the SMA portfolio, and whether a large trade by the unit trust can potentially impact SMA investor outcomes.

One way to avoid this issue is to consider a SMA investment manager that does not run large unit trusts alongside SMA model portfolios.

Damian Cilmi, Praemium Head of Investment Managers and Governance said ‘Praemium’s recent research report ‘The real truth about managed accounts’ outlines the quantifiable benefits of SMAs for advisers and their clients. For advice firms, the efficiency benefits are now backed with evidence of a clear profitability boost.  Investors in SMAs not only enjoy an enhanced wealth management experience, but the benefits of netting and lower brokerage costs make them a cost-effective solution. Ralton has taken the extra step to articulate those additional benefits from a portfolio trading perspective and it’s important that all factors are considered in the SMA decision.”

The post Financial advisers may need to factor in how a managed account trades, in order to realise full benefits for investors appeared first on AdviserVoice.