To purchase an SMA, please refer to How to trade using Adviser Online.
Once the SMA has been purchased, it will need to go through pooling, like a managed fund, and trading of the underlying assets will commence the following day.
Please note, a new SMA order must be equal to or exceed the minimum holdings as per the relevant Product Disclosure Statement (PDS) and Additional Information Booklet (AIB).
| T | T+1* | T+2* | T+X* |
|---|---|---|---|
| Place an order on Wrap to buy a new SMA prior to pooling. | New SMA established | Purchases placed | Assets all settle varying on their individual settlement time. Wholesale fund information quotes the longest expected settlement time of the underlying assets. |
*Number of business days
When initially purchasing an SMA, the underlying asset settlement times usually vary which will mean your SMA holdings may look slightly off for a small time whilst waiting for all assets to settle. For example, if an SMA had two assets, one with a settlement time of T+5 and the other with a settlement time of T+12, on T+7 you’ll be able to see the T+5 asset as your holding but not your T+12 asset yet.
In addition to the Wrap administration fee, there is an SMA management fee which includes the fees and costs for managing the SMA investment. Each SMA has its own management fee which is calculated daily based on the closing price of investments in the SMA account. The fee is generally deducted monthly in arrears from the cash balance in the SMA account.
There is also a transaction fee for trading ASX-listed securities. Unlisted managed funds do not incur a transaction fee.
The transaction fee is $5.50 and is charged per ASX-listed security trade. The transaction fee covers brokerage and costs incurred by MISL (Macquarie Investment Services Limited) associated with the processing and settlement of the trade.
For example, if a client account is rebalanced and in-order to bring the account inline 10 ASX-listed securities are required to be traded. The transaction fee is $55 (i.e. $5.50 x 10 securities traded). The transaction fee is either deducted from the sale proceeds or added to the purchase cost of a trade processed at settlement.
Please refer to the relevant SMA PDS and AIB for further details on SMA fees.
The minimum investment into an SMA is at the Investment Manager’s discretion, as long as it is compliant with relevant ASX rules:
To view the current SMA investment minimum, please refer to section 5.17 – SMA Model Portfolio profiles in the relevant PDS found in Adviser Tools.
As part of the ongoing Design and Distribution Obligations, refer to SMA Target Market Determination.
Chat in real-time with an adviser consultant Monday to Friday, 8am to 7pm Sydney time (excluding public holidays).
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