Bellmont Securities partners with Hub24

posted on January 15th, 2015 by David


Boutique Australian portfolio manager and broker Bellmont Securities has flagged that its two separately managed account (SMA) offerings will soon be accessible to advisers via the Hub24 platform.

Up until now, Bellmont Securities’ Core Equities Portfolio and Buy-Write Portfolio were only available via Linear’s investment platform, Bellmont Securities director Peter Bell told financialobserver.

“We’re looking to roll out these SMA offerings across different platform providers, albeit slowly,” Bell said, adding the group’s first priority was to increase adviser distribution through its established relationships with Linear and Hub24.

Bellmont Securities launched the SMA component of its business in 2012, with the actual business established in 2006.

Bell said the group had a particular interest in SMAs due to the transparency and tax effectiveness they offered investors.

“SMAs occupy a really nice middle ground for clients,” he said.

“They offer the simplicity of a managed fund and at the same time provide the transparency and effectiveness of a direct equities account.

“At the end of the day I believe what is in the best interests of clients will ultimately come to the forefront of the market, despite the take-up of various managed account structures having been somewhat slow to date.”

He said while the industry had been sluggish to move on managed accounts, it was largely a consequence of funds being held captive by the big banks.

“The banks and AMP, who own incumbent platforms, would prefer the status quo to remain the same as that’s how they generate their revenue,” he said of the traditional style of investments available to the market.

“For the banks and AMP to move into managed accounts they would either need to add external and more nimble platform providers to their approved product lists or invest heavily in new infrastructure and technology, and neither of those options are particularly favourable.”

He said while he had heard BT Financial Group was working on new managed account capabilities, he was yet to see anything come to market.

Further, he acknowledged Macquarie had added a new SMA component to its stable last year, but it was too restrictive in relation to his group’s SMA strategies and the bank would need to tweak its revenue model for it to work.

“We’re really focusing on ’challenger’ brands like Linear and Hub24,” he said, adding the group was currently speaking to and was aware OneVue was also active in the sector.

“A growing number of [non-aligned] advisers are interested in new ways they can service clients in the current environment, particularly in regard to greater emphasis being placed on clients’ best interests.”

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