SMAs can be a costly vehicle for offshore investment (The Aust 02/10/18)

The SMA is not a new structure. It has been available in the Australian market since the 1970’s.

International SMAs have started to grow in popularity. However, there are a few crucial differences that need to be considered by investors when assessing the suitability of an international SMA.

Whilst domestic SMA structures delivers flexibility, overcoming the taxation issues as well that arise in unit trusts and provides a high level of transparency. These benefits are shared with international SMAs.

When high quality, conviction management with strong track records of outperformance is widely available for 0.8 per cent plus GST, it’s hard to see why anyone would consider an international SMA given the cost.