Product Description

An OC Funds Management Individually Managed Account (IMA) is an investment vehicle similar to a managed fund, in which the client pays a fee to the manager for the provision of investment management services. The important difference is that a managed fund investor owns units with investors pooled in a trust that in turn owns the investments, whereas an IMA investor owns the invested assets directly in their own designated name. IMA’s are a highly effective personalised form of investment that combines the advantages of direct ownership with professional management of a portfolio across asset classes including direct shares, fixed interest and cash.

Key Features

• Each client’s IMA is professionally managed by OC Managed Accounts Pty Ltd in accordance with the clients security and return objectives.
• Investment transparency – clients are able to view directly underlying investments held on their behalf and have the opportunity to meet regularly with the investment manager to assess and review their investment portfolio.
• An experienced and dedicated investment team solely focused on maximizing long term investment returns.
• Tax – as all securities held in a client’s IMA are held in that client’s name, a transparent and ‘tailored tax outcome’ can be achieved for each client. This can be contrasted to investing in a managed fund where a ‘pro rata tax outcome’ for all investors is achieved, regardless of when they acquire their units and when the underlying tax liabilities of the fund were incurred.
• Client’s direct security holdings can be transferred into a client’s IMA without triggering capital gains tax, provided there is no change in beneficial ownership.
• High quality reporting by BT Portfolio Services, including tax statements, that can greatly assist in the preparation of financial accounts and tax returns.

Investment Principles

Equities

• An investee business should be attractive irrespective of economic cycles and therefore our analysis is concentrated on the value of individual securities as opposed to the analysis of economic trends.
• Diversification between industry sectors and high quality businesses is important but over diversified portfolios can materially contribute to inferior investment performance.
• Low portfolio turnover – the objective of purchasing a stock is to purchase a share of a business which can create value and be held over the long term. This strategy can also reduce the incurrence of capital gains tax.
• Dividend income is an important component of the total shareholder rate of return. We are cognisant of individual clients value of franking credits.
• Portfolio volatility should not be confused with investment risk, namely the risk that a company will suffer a permanent diminution in value. Our investment team undertakes intensive and deep research to identify investments with an attractive “margin of safety”.
• Attempting to forecast the direction of the market is speculation and is not a primary factor in our investment decision making process.

Fixed Interest

• Objective is to deliver a rate of return above the cash and bond rates through a diversified investment portfolio of investment grade higher yielding securities.
• Security of capital and low portfolio volatility are our key principles when investing in this asset class.

Operational Structure 

• OC’s IMA service utilises a dedicated BT Wrap account for each IMA for the purposes of administration, custody and consolidated reporting of each client portfolio.
• BT Wrap is an internet-based services that ‘wraps’ around each client’s portfolio of investments and their cash account.
• The BT Wrap service is capable of holding and reporting on multiple investment asset classes including direct shares, fixed interest securities and managed funds.
• OC operates each client’s BT Wrap account pursuant to an Investment Management Agreement entered into with each client and with a limited form of Power of Attorney.

Product Details

For more information, please contact us.