Established to serve the growing number of investors seeking personal guidance in the often volatile stock market, Acumen Asset Management provides the perfect balance between professional advice and personal service and will help you get the most out of your investment dollar.

Individually Managed Accounts

An Individually Managed Account (IMA) is just what it says - an investment portfolio that is individually managed for an individual client by a professional manager who recommends to that client when to buy and sell securities based on the client’s stated investment strategy and/or objectives.

Unlike managed fund investors, the portfolios of Acumen’s IMA clients are not pooled with the money of other clients – they always remain separate and are managed in line with each client’s unique requirements and goals.

Acumen’s IMA structure lies between a client “going it alone” by picking their own stocks and buying into a managed fund.

 

Transparency

The holdings of Acumen’s IMA clients are registered in, or remain in, their own name. IMA investors can specify certain selection parameters to customise their account according to their needs, thereby enjoying greater flexibility and control than with a managed fund. With Acumen’s service, clients know exactly what stocks they hold, and can follow them as much or as little as they wish, without the burden of stock selection and/or portfolio administration.

 

The ebb and flow of information

Managed fund investors generally receive quarterly statements listing the number of units they own in the fund's common pool of investments and the value of those units at the end of the period. They may also receive details of some, but not all, of the fund's investments. They are usually not provided with any further information.

An investor in an Acumen IMA, on the other hand, generally receives quarterly statements detailing each security in the investor's account, the security's cost basis plus market value and its "weighting" in relation to other holdings in the portfolio. In addition, Acumen IMA statements provide information on dividends and income received by the portfolio plus capital gains/losses and other pertinent items.

 

Flexibility

Acumen recognises that client needs and objectives can change over time and, as that happens, the strategies for each client can also be changed without the client having to pay potentially significant exit and entry fees to managed fund operators.

 

Taxation

With Individually Managed Accounts, investors pay taxes only on the capital gains they actually realise. Because the securities are in their own name, they can work with their tax advisor to implement tax planning strategies that Managed Fund investors may not be able to duplicate. For example a client’s tax position can be reviewed prior to the end of a financial year and appropriate action can be taken to minimise tax liabilities.

 

Unintended Tax Consequences

During market declines, Managed Funds may be forced to sell securities at undesirable prices to raise sufficient cash to meet investors' redemption requests. Generally, this not only goes against the manager's better judgment but also negatively affects the fund's long-term performance. It can also activate capital gains or losses for individual clients that are totally outside of their control and may not be to their advantage.

In contrast, Individually Managed Accounts are not affected by the decisions of other investors who use the same manager. Since accounts are managed separately, the investment manager's strategy cannot be undermined by the cash-raising pressures of a "herd," nor will investors following long-term buy-and-hold strategies find themselves thwarted by the unreasonable cash flow demands of others.

Further investors buying into a managed fund may be liable for capital gains tax liability when that fund sells a stock, even if the fund has held the stock for years and the investor has only been exposed to it for a very short time. The timing of the liability may not suit the investor and in fact they may not become aware of these changes until the end of the year.

Under the IMA, since the investor owns the underlying shares, the basis for any capital gains starts the day the investor buys them. The investor’s broader tax situation can then be taken into account when it comes to crystallising gains or losses and since the investor holds the shares in their own name, they can leave the IMA and keep the shares without a gain or loss for tax purposes.

 

Portfolio Management Service

Acumen specialises in the management of these IMAs through its Portfolio Management Service.

How does Acumen’s Services operate?

  • Acumen works with each client to determine their Investment Objectives and provides strategy recommendations within the appropriate asset allocation, which will achieve these Objectives.  The analysis process includes an assessment of each individual client’s financial situation, needs, objectives and risk profile.  The planning process flowing from this analysis is one of the key drivers of success. 
  • Acumen’s advice covers all asset classes - Australian Shares, Fixed Interest, Property and Cash plus International securities.
  • Recommendations are based on Acumen’s Investment Process to ensure objective analysis of investment sectors and individual stock selections to meet the individual requirements of each client’s portfolio.  
  • Assessments of new issues and public floats are also carried out to determine their suitability or otherwise for individual clients. In addition, through Acumen’s network with the corporate community, the client may gain access to new issues and floats that possibly would otherwise not be available to the general public.

Specific income requirements and the taxation status of each client are important considerations for their individual accounts.

Acumen’s Investment Team are also available for any clients who wish to personally discuss their portfolios.

As all the funds are retained in a client’s name, you can monitor your portfolio as much as you wish. Get involved regularly, or simply read through your quarterly portfolio appraisal or access your portfolio through Acumen’s secure website.

Portfolios are managed on an ongoing basis and Acumen makes recommendations to clients concerning the purchase and sale of securities (subject to a client’s specific Capital Gains Tax position) and, only after gaining the client’s consent to such action, Acumen also executes the relevant transactions on the client’s behalf. To restate this important point, we do not take any action on a client’s behalf without consulting them first. The result is that our clients know exactly what stocks they hold, and can follow them as much or as little as they wish, without the burden of stock selection and/or portfolio administration.

All shares purchased are registered in the client’s name care of their existing address and all income and sale proceeds are paid to that name.

The overall service operates under an Investment Management Agreement which is based on an industry standard and is for the protection of both parties - its purpose is to allow a client’s portfolio to be professionally managed under agreed Instructions and Guidelines and requires the client’s consent before recommended action can be carried out.