Shaw and Partners leverages success to grow SMA menu

Shaw and Partners added eight new separately managed account strategies in response to growing client demand for access to a greater number of asset classes.

Since launching SMA solutions in August last year with the introduction of the Hybrid Income and Large Cap Australian Equities model portfolios, Shaw and Partners co-chief executive Earl Evans said clients have been asking for a more comprehensive portfolio management solution.

"We sought to take the time to develop a complete 'best of breed' portfolio management offering which is built around a goal-based investing model," Evans said.

The new portfolios include five asset-based models: debt securities, large cap Australian equity income, large cap Australian equity growth, small/mid cap Australian equity and international equity. They are a blend of direct asset SMAs managed by the firm, ETFs and external managers including LICs.

Shaw and Partners said the integrated approach is designed to improve the risk/reward characteristics for investors. Further, Shaw and Partners uses the seven asset class based portfolios as the building blocks of its goals-based portfolios by running an asset allocation strategy appropriate to the objectives of each goal portfolio.

Investors are increasingly looking for a bespoke, goals-based approach to wealth management, co-head of income strategies Steve Anagnos said.

"The three new goals-based portfolios that we have launched today; income, growth and balanced, are a blend of Shaw asset-based SMAs. Each one is managed with its own unique investment strategy in order to maximise the likelihood of achieving the return objective giving investors more confidence that their goals will be achieved," he said.

Anagnos added that people have various financial goals with varying time horizons and priorities, so by adopting a goals-based investment strategy each goal is managed with its own separate portfolio, rather than in one diversified portfolio.

"This reframes the conversation around risk given that the impact of the volatility of returns matters less than the risk of each investor's goal not being achieved," Anagnos said.

Evans also hinted that a property-based SMA and an uncorrelated alternative-style portfolio may soon be added to the Shaw and Partners investment menu.

"By broadening the access to available asset classes, the blended portfolios should maximise the probability of the client's return objectives being met," he said.

The Hybrid Income and Large Cap Australian Equities model portfolios now hold $100 million in funds under management.

Read more: ShawPartnersSMACap Australian EquitiesHybrid IncomeEarl EvansSteve Anagnos
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