In this episode, Mark focuses on: 

  • The benefits of SMAs (Separately Managed Accounts): 
    • Provide investors with greater control than a managed fund, while still benefiting from the expertise of a professional manager.
    • Individual portfolio holdings are visible in real time, unlike managed funds where performance details are typically only available periodically.
    • Potential for lower transaction costs through blending and netting proceeds.
    • Investors are beneficial owners of the underlying securities, rather than owners of units in a pooled trust.
    • Investors do not inherit embedded capital gains and are not subject to the redemption activity of other investors.
    • SMAs may be an effective tax management tool, enabling investors to off-set capital losses against capital gains.

February 13, 2017