To purchase an SMA, please refer to How to trade using Adviser Online.
Once the SMA has been purchased on Adviser Online, 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 Minimum Portfolio Size within section 5.17 SMA Model Portfolio profiles within the Additional Information Booklet (AIB) of the relevant Product Disclosure Statement (PDS).
| T | T+1* | T+X* |
|---|---|---|
Place an order on Wrap Online to buy a new SMA. | 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 short period 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.
For further information, please refer to Understanding settlement and turnaround times.
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 Macquarie Investment Services Limited (MISL) 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, including indirect costs, performance fees and indirect transaction costs.
The minimum investment into an SMA is at the Investment Manager’s discretion.
To view the current SMAs investment minimum, please refer to section 5.17 – SMA Model Portfolio profiles within SMA PDS and AIB.
Target Market Determinations (TMDs) are part of the ongoing Design and Distribution Obligations (DDO) imposed by regulatory bodies to ensure financial products are designed and distributed in a way that they meet the needs of the intended target market.
You can refer to the SMA Target Market Determination, which describes the type of customer for which Macquarie’s SMA product has been designed(Target Market), conditions on the distribution of Macquarie’s SMA product (Distribution Conditions) the reporting requirements for distributors of Macquarie’s SMA product (Distributor Reporting Requirements) and when we will review this TMD.
There are a number of Wrap features, as well as SMA-only features, that can be utilised to create additional efficiencies when using SMAs, including:
You can select and automatically maintain a minimum and/or a maximum cash balance. This feature is available for any of your client’s accounts that hold managed investments, including SMAs.
You can customise your client’s SMA to tailor their investments to their personal preferences, including asset and GICS sector exclusions.
Facilitates regular investments from your client’s Wrap cash account into the SMA they hold in their Wrap account.
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