Individually Managed Accounts

Individually Managed Accounts

Individually Managed Accounts (IMA)

Private discretionary accounts, fully managed and administered by Leyland Private Asset Management and available to clients with at least A$500,000 to invest.

IMA’s allow for a tailored investment strategy to be developed and implemented efficiently, whilst also providing full transparency as to the content and performance of the portfolio.

When establishing an investment mandate we discuss with each investor their individual goals, preferences, existing investments and personal disposition.

Comparison

The table below outlines the difference between IMA’s and alternative forms of managed investments.

Feature Managed Funds LICs ETFs SMAs IMAs
Tailored management No No No No Yes
Direct access to portfolio manager No No No No Yes
Personalised corporate actions No No No No Yes
Transparency No No Index Yes Yes
Input into investment decisions No No No No Yes
Tax Efficiency Poor Moderate Good Good Excellent
Portability None None None Good Excellent
Direct ownership of underlying securities No No No Yes Yes
Embedded tax Liability Yes Yes No No No
Capital losses applied to Future gains within structure Future gains within structure Future gains within structure Any current or future gains Any current or future gains

Frequently Asked Questions

LPAM Individually Managed Account vs. ‘One-size-fits-all’ unit trust

Managed Fund/Unit Trust

  • You may be forced to accept the consequences of undistributed realised and unrealised gains.
  • As a new unit holder, you also risk receiving back a proportion of your capital as a taxable distribution.
  • You own units in a ‘pool’.
  • Unit trusts generally distribute realised gains and income every six months. Distributions tend to be unpredictable from period to period.
  • Report six monthly and provide very basic information on activity and holdings.
  • No control over investment decisions whatsoever.
  • Some trusts will pass the cost of travel, meetings, accountants, auditors and lawyers on to you as ‘recoverable expenses’.

LPAM Individually Managed Account (IMA)

  • You can commence your investment with a brand new portfolio of shares and the tax consequences only relate to you.
  • You directly own your underlying assets.
  • Your income is directly correlated to the dividend stream of the shares you own.
  • Through LPAM’s website you have online daily access to your portfolio.
  • You receive a contract note each time a share transaction is executed on your behalf.
  • You receive quarterly financial reports and all transactions are summarised at the end of the year for tax purposes. An updated financial report can also be requested at any time.
  • You have ultimate control over your own portfolio.
  • All transaction and administration costs are absorbed by LPAM. The only cost to you is the management fee charged per quarter

Benefit to client

  • You own the portfolio.
  • You have greater tax and investment flexibility.
  • You enjoy complete transparency with regard to income.
  • You enjoy complete transparency, comprehensive reporting for tax purposes and personal ownership.
  • You can send instructions at any time to ‘sell the lot’.
  • The simple flat fee structure means a greater proportion of investment performance is passed on to you.

Who can open an IMA?

Any entity that is legally able to own Australian shares can invest via an IMA. This includes individuals, companies, family trusts, self-managed super funds, not-for-profit organisations and charitable foundations.

How do I manage the administration associated with owning shares, such as dividends, rights issues, tax file numbers etc?

Leyland Private Asset Management takes care of all the administration requirements. We also provide you and your accountant (if requested) with regular detailed financial reports.

Can I use my existing shares to start an IMA?

Yes. You can start your IMA with cash and/or existing shares.

Can I have my current share portfolio managed by Leyland Private Asset Management without incurring capital gains tax?

Yes. When you transfer your existing share portfolio into your IMA you are not undertaking a buy or sell transaction, and therefore there are no administration costs or capital gains tax implications.

What happens if I need to access some funds from my IMA?

You are able to withdraw funds from your IMA at any time without incurring any penalties.

How do I know when Leyland Private Asset Management has bought or sold shares for me?

Each time a share transaction is executed you will receive a contract note which outlines which shares have been purchased or sold on your behalf and at what price.

How do I know what shares I own?

You will be provided with an online password so you can see your position at any time. In addition, you will receive a detailed financial report each quarter which includes all the trades undertaken and a current portfolio position, including any cash balances, realised and unrealised gains or losses and dividends received. You may also request an updated financial report from your investment manager at any time.

Does my investment manager make corporate action decisions for my IMA?

Yes. Your investment manager will take care of any corporate offers such as rights issues, takeover offers, option exercise notices and voting.

Will I have access to new floats?

Yes. Leyland Private Asset Management has access to new floats. The decision whether to invest in any float will depend on the quality of the investment and the client’s investment strategy.

Where are my shares held?

Your shares are always owned by you and registered in your name.

Shares are held on CHESS (Clearing House Electronic Subregister System) which is administered by the Australian Stock Exchange.

Legal title is electronically registered and is similar to a bank account. More information can be obtained from the ASX website http://www.asx.com.au/investor/shares/how/chess_holdings.htm

What investment returns should I expect?

Investment returns will vary due to the objectives and parameters specified by each individual client. For instance, a client wanting a low risk, high income portfolio will have a significantly different risk/return profile to a client seeking capital growth at a medium risk. 

Historically the Australian share market has grown at approximately 12% per annum. Our aim is to out-perform this long term average

by 3-8%, providing long term gains of 15-20%.

As different returns are related to different investment strategies it is important to have a detailed discussion with Leyland Private Asset Management about your personal requirements and risk tolerance.

Past performance should not be used as a guide to future performance.

Can I call my investment manager direct?

Yes. You may call your Leyland Private Asset Management investment manager to discuss your IMA at any time.

How often is my personal investment profile reviewed?

Your profile is reviewed at the anniversary of the opening of your IMA, or when there is a change in your circumstances. For example, if you instruct Leyland Private Asset Management to increase your level of income, then your investment manager will restructure the composition of your portfolio to accommodate your new income requirements.

What are the entry or exit fees for an IMA?

There are no entry or exit fees when you invest in a Leyland Private Asset Management IMA.

How much does it cost?

Our all encompassing quarterly fee is calculated as a percentage of the portfolio and will be between .25% and .5% depending upon size and specific requirements.

How am I charged?

Investors with an IMA are charged one simple fee at the beginning of each quarter. There are no additional charges.

Are there any hidden charges?

No. Unlike many other funds or managed products there are no transaction costs or wrap/administration fees.

Do I pay brokerage on my transactions?

No. All the brokerage costs are absorbed by Leyland Private Asset Management.

Can I select the accounting methodology to be used in my IMA?

Yes. Some examples of methodologies include:

  • First in First Out (FIFO)
  • Last in First Out (LIFO)
  • Highest in Last Out (HILO)

Can my investment manager liaise with my accountant, financial planner or other professional advisor?

Yes. We are able to send detailed electronic financial reports directly to your advisor(s) in a format which should streamline workload.

Does my investment manager take into account my tax position?

Leyland Private Asset Management is not authorised to provide tax advice but is able to liaise with your professional tax advisor (subject to your authorisation).

What happens if I am unhappy with my IMA or investment manager?

All shares are registered in your name under CHESS, so you are able to transfer them at any time and incur no cost. Unlike managed funds you do not have to redeem units or pay fees to exit if you are unhappy for any reason.

Are you licenced to provide IMAs?

Leyland Private Asset Management is fully licenced and holds AFS Licence Number 223419, issued by the Australian Securities and Investment Commission (ASIC).

Direct Share Ownership

Investors receive all the benefits of direct share ownership, including voting rights, dividends, franking credits, rights issues and share buy-backs. Investments are held directly by the client ensuring that the assets are fully protected.

Administration

All administration associated with the portfolio is managed by Leyland Private Asset Management.

Transparency

Comprehensive, yet straightforward online reporting allows clients to view their investments & performance in real time.

Individually Managed Accounts are only available for clients who qualify as wholesale for the purposes of section 761G of the Corporations Act 2001 (Cth).

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