In a pioneering move, Bellmont Securities has been successful in creating Australia’s first ‘smart beta’ SMA (Separately Managed Account), now available on the HUB24 platform.
“The case for smart beta strategies is compelling. Investors get access to low cost, tax efficient market exposure, but without being over-exposed to the most expensive companies in the market, as they would be in a standard market-capitalisation weighted index. To now be able to combine these benefits with full transparency and beneficial ownership of the underlying securities via an SMA structure is fantastic,” said Peter Bell, Director, Bellmont Securities.
“We’re big believers in direct ownership structures for their tax and transparency benefits, and HUB24 have been real innovators in this space for some time now. Given our focus on after tax returns, we think the combination of our Bellmont Core Equities Portfolio and the HUB24 platform is an ideal fit.”
Sitting between traditional passive indexing strategies and active funds management, smart beta strategies utilise a systematic approach to provide diversified exposure to the share market, but with stock selection and weightings based on factors that are ‘smarter’ than traditional market capitalisation weighted indexes. This style of investing has experienced rapid adoption by investors, leading to a range of managed fund and ETF smart beta strategies coming to market. However the Bellmont Core Equities Portfolio is the first offering that combines a smart beta strategy with the transparency and tax-effectiveness of an SMA structure.
“We’re pleased to have the Bellmont Core Equities Portfolio on our platform to further differentiate our extensive range of portfolios. The addition of their smart beta style SMA with the added benefit of transparency and tax-effectiveness complements our existing offering extremely well. We anticipate this will be attractive to both investors and their advisers,” added Wes Gillett, Head of Marketing & Distribution, HUB24.
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