IMA
Individually Managed Accounts
Clients can discuss their taxation status, growth or income expectations, specific investments, environmental, social or governance (ESG) considerations with our sophisticated portfolio manager. Our portfolio manager will then build a portfolio tailored to meet the client’s investment objectives and requirements and manage it going forward.
All IMA clients have secure online account access, regular portfolio commentary, and annual tax reporting. In addition to the reporting services, the portfolio manager will meet with the client on a regular basis to discuss the portfolio and explain any changes to it.
If having existing holdings, clients can select to not trigger any capital gains tax (CGT) events, and avoid buy/sell spreads and broker fees when they want to transfer commonly-held shares into an IMA portfolio or upon exit of the IMA.
Clients are beneficial owners of the underlying securities, rather than owners of units in a pooled trust. The underlying portfolio of stocks is held directly in the client’s name.
As each client retains the direct beneficial ownership of their holdings, dividends and franking credits accrue directly to each portfolio and existing holdings can be transferred into their Infinitas portfolio without triggering tax events. Investment management, sell decisions, withdrawals and transitions are made with consideration to the clients’ total tax consequences and status.
Unlike investing in a managed fund, any taxation consequences resulting from a portfolio transaction are quarantined to the individual investor. In a managed fund, there may be embedded capital gains within the unit price that an investor “buys into” when investing in a fund. In addition, the manager may be forced to sell stocks to meet other investors’ redemption requests, resulting in taxation consequences for remaining investors, through no action of their own.
From this perspective, IMAs are the most tax-effective vehicles, as the portfolio manager takes into account the individual investor’s tax position on individual stock and the overall portfolio, and may seek to time the sale of stock in order to minimise the investor’s tax liability.