A Managed Account carries a set of investments guided by a model portfolio of assets, or a blend of model portfolios. Each model portfolio is managed by an investment professional. The managed account is overlaid with the client's investment preferences. The managed account is overlaid with the client's investment preferences, resulting in a personalised portfolio for an individual investor, unlike a managed fund which issues units in a trust that holds a pool of assets. Investors each have standard units that are applied for and redeemed on prices derived from the trust's net asset value. Managed Accounts take in the specific investment preferences given by the investor, but a managed fund does not.
How does a Managed Account at Netwealth work?
The following example assumes that you have chosen three different models for the purpose of managing your managed account. If you have invested in Managed Model 1, Managed Model 2 and Managed Model 3, we then combine the proportionate model allocations along with your personal investment preferences to produce a 'Reference Allocation' for your managed account. This reference allocation moves or 'floats' on a daily basis until the next rebalance. Then through the review and rebalance, your managed account investments are moved to cash, managed funds, ASX securities, international securities or other investments made available from time to time by us. Underlying investments of your managed account are regularly rebalanced based on the 'Reference allocation'.
You can choose from a range of models. The models available are listed in the Managed Models Menu
which you can find in Part 2 of the PDS. Your interest in the Managed Account is referred to as ‘your
managed account’ in this PDS. For more information on the investment options of a Managed Account, click here. For more service forms and documents about Managed Accounts, click here.
Important Notes:
- The allocation of investments held in your managed account does not always exactly match
those of your chosen model(s). This may be due to the application of minimum holdings and trade
sizes, your personal investment preferences and timing differences. The Managed Account Guide has further details about how these variables affect the allocation of investments in your managed
account. - Managed accounts are rebalanced daily, at approximately 10:30-11am.
- You can only invest in the Managed Account through an account you hold in one of the platform services. You can instruct Netwealth as operator or administrator of the relevant platform service to invest in your chosen managed models using the Managed Account. You can also instruct Netwealth as operator or administrator of the platform service to apply your chosen personal investment preferences in relation to your managed account, to make additions to the Managed Account, to make withdrawals from the Managed Account and to change or switch between the models held in your managed account.
- When you direct Netwealth as platform operator or administrator to invest in the Managed Account on your behalf through your platform account, the terms and conditions of the Managed Account apply. The terms and conditions of the Managed Account are as set out in the PDS and in the constitution of the Managed Account as amended from time to time.