FAQ (Frequently Asked Questions)

Founded in 1998 by stockbroker Marcus Padley, Marcus Today has grown from a daily note to clients into a leading independent stock market newsletter, with in-depth company research and recommendations, financial market analysis and commentary, trading and technical ideas and model portfolios. The Marcus Today culture of “telling it as it is” has translated into model portfolios which have outperformed the “average” index return due to our superior stock picking and an unbiased and high-conviction approach to portfolio management.

Marcus Today is part of the MTIS Private Wealth, one of Australia’s leading privately owned financial advisory groups, dedicated to empowering clients and their families to build intergenerational wealth through Self-Managed Super Funds (SMSF) and Family Office advice, comprehensive strategic advice and technical excellence.

the S&P/ASX 200 Industrials

the S&P/ASX 300 Accumulation Index

Over a 1 year period, 3 year period and since inception, the historical performances are as follows:

Growth SMA

 *Praemium | 01/04/2021 | Details correct at time of publication. Past performance is not a reliable indicator of future returns.

Income SMA

 *Praemium | 01/04/2021 | Details correct at time of publication. Past performance is not a reliable indicator of future returns.

We started our funds in late 2016.

There are two Model portfolios:

• Marcus Today SMA (MT001)
• Marcus Today Equity Income SMA (MT002)

Refer to the SMA Fact Sheet for further details one each of the model portfolios.

Yes, there is a $50,000 minimum investment per SMA model portfolio.

Your account can be customised through security substitution, which allows you to avoid acquiring securities that either you do not wish to hold, or you already have exposure to outside of the SMA.

Note, if you choose to customise your account, it may not perform in the same manner as the actual Model Portfolio due to the different nature of the holdings.

Yes, regular contributions can be a picked option indicated during the application process.

Or you can use your dedicated BPAY code at any time to top-up your fund. Your BPAY code will be valid for all your transfers into your SMA account.

Another option is to contact the SMA team (sma@marcustoday.com.au) to debit your linked bank account.

No, not at this time.

Yes, at any time without a penalty or withdrawal fee. Withdrawals can be in the form of cash, or in-specie transfer out (in-specie transfer fee may apply).

Unless specified otherwise income and dividends received will be paid into your cash holding within your Account, and used for future investment during the portfolio rebalancing process (subject to the minimum trade size being achieved).

You have the option to nominate an external linked bank account, and have your income and dividends paid into the nominated bank account monthly.

Fees and expenses are paid from the cash holding within your Account on a monthly basis. You have the option to nominate an external linked bank account to setup a direct debit facility, to top up your cash holding each time a fee payment is made. This is known as “fee offset”. Instead of nominating a set amount per month, your nominated account will be debited for the exact amount of the month’s fees.

There are no Adviser fees.

If at any time the cash balance in your Account falls below the required minimum 1% holding balance, additional securities will be sold (or purchases reduced) pro-rata across your Account (subject to the minimum holding locks). Alternatively, you can elect to top-up your cash holding from your nominated bank account.

The Responsible Entity for the Marcus Today SMA, Praemium Australia Ltd will receive communications relating to Corporate Actions affecting the securities held in your Account. Praemium Australia Ltd will act in the best interests of investors in the Marcus Today SMA as a whole, but will generally not be obliged to act on any individual investor’s directions.

Portfolio reporting is available online 24/7 via your Investor Portal where you are able to view your current holdings, cash account and security transactions, tax positions, brokerage, and fees and other charges deducted from the account. You will be given login access at the creation of your SMA account.

At financial year-end you will be able to access an annual report and summary of all these items to assist you with the preparation of your tax return.

The Growth SMA acts as an absolute return fund, while the Income Portfolio is conscious of holding positions for franking eligibility under normal circumstances.

Stock turnover varies with market conditions. As we have an ability and willingness to move up to 100% cash if we see the need turnover can at times be very high, with the entire portfolio being turned over in a relatively short space of time (eg. If we were to move from 100% invested to 100% cash and back). Our size and Praemiums minimal brokerage fees allow us this agility.

The Marcus Today team, headed by Marcus Padley, constantly monitors the model portfolio and makes changes as they are required. The investment strategy involves a combination of approaches to identify attractive companies and their suitability for portfolio inclusion, including:

• Fundamental stock analysis, with particular focus on return on equity, future earnings growth and relative valuations (PE relative to historical and peer group).
• Consideration of a “quality” rating through features such as management quality and track record, corporate governance, balance sheet management, company direction and market sentiment
• Macroeconomic and thematic influences, including the global growth environment, industry structure and position in the investment cycle and investment “themes”. (E.g. the search for yield).
• Technical analysis, Marcus Today uses a technical overlay to assist in timing the entry into a stock which has already met fundamental, quality and thematic filters. Marcus Today also use technical features to monitor the position and help time any exit.

In the current market climate it is impossible to predict the yield as a large portion of the market are cutting, deferring or cancelling their dividends. Typically the Growth SMA will have a yield slightly below that of the broader market due to its weighting towards younger “Growth” companies.

The SMA structure differs from that of a traditional managed fund. In both the Growth and Income SMA’s investors have the choice to have dividends paid out or reinvested into their account (as they own the shares, not a slice of a managed fund). The tracked performance shows total return for both the growth and income SMA’s and assumes reinvestment of dividends.

Apply online or request a paper appliation from the SMA Team sma@marcustoday.com.au scan and send it back. For more information or assistance email sma@marcustoday.com.au or call 0428 062 327.

You can elect to take dividends in cash or reinvest. It is an election when you invest.

It is impossible to predict brokerage as it is dependent on the amount of activity in the model which is highly variable depending on market conditions. The SMA seeks to minimise brokerage costs by eliminating unnecessary trading; this process, known as netting, works to offset buy and sell trades in an investment so that only the net position is traded.

A brokerage charge of approximately 0.055% is applied to trades in ASX listed securities. In addition, a settlement fee of $0.87per ASX listed security transaction will be deducted from the cash holding of your Account.

No, you can use a current and existing bank account that will be linked to your SMA Fund and only used on your instructions.

Your SMA will act as an investment under your name and you retain beneficial ownership of all of your shares. CHESS details will be created for your SMA.

The will be Quarterly reporting and you can request reports from the SMA team at any time.

Tax packs are uploaded to your Investor Portal and created by the admin platform Praemium.

More details on Tax can be found in the PDS: page 5 & 21.

The cash account is HSBC Bank Australia Limited, your funds will be held in your name. You will be given an Investor portal login to view your SMA holding.

We use Praemium: www.praemium.com.au

They are cost effective and keep fees low for our clients. They also offer 24/7 access to an Investor portal for our clients with regular platform updates.

No

No

Your funds are immediately allocated, along the portfolio as it exists at the date of commencement.

Yes, you will have a Investor Portal created for you and once you account is opened provided with login details to view your fund at ALL times.

An Investor Portal can be found HERE.

We provide you with a withdrawal form, you confirm your exiting details and sign-off the account closure. If this form is received before COB, it is auctioned that day. Funds will usually be returned to your linked bank account within 4-7 days.

Assets are held by Praemium beneficially in your name, meaning you can utilise your personal tax status as if you held the stocks personally (please seek further information from a personal financial advisor or tax agent as to how this applies to you. WE CANNOT PROVIDE PERSONAL OR TAX ADVICE. When you join the SMA your funds will be used to purchase stocks to match the model portfolio, meaning you do not inherit past performance of the fund.

Your SMA will act as an investment under your Self Managed Super Fund (SMSF). Your SMA account will be created with your Self Managed Super Fund (SMSF) details. CHESS details will be created for your SMA.

Yes, you can family aggregate SMA accounts

Full administration of your investment portfolio (including automatic portfolio changes when changes are made by the Model Managers).

Comprehensive online reporting with complete portfolio transparency of the underlying investments in your portfolio.

Retaining beneficial ownership of the investments in your portfolio.

Yes, in the application process you can request to not hold a security in your SMA. We will then set-up Holding locks on those equities.

Marcus Today charges an Investment Fee of 0.75% pa (including GST) for the management of the SMA. On top of that the SMA platform provider Praemium charges an Administration Fee that is dependent on the investment amount (see below). Find our full  fee outline HERE.

• First $250,000 = 0.33% pa
• Following $250,001-$500,000 = 0.25%pa
• Following $500,001-$1,000,000 = 0.15% pa
• Additional amounts over $1,000,001 = 0.00% pa

Yes, you can elect to have your dividend’s paid out during the application process or on instruction to the SMA team (sma@marcustoday.com.au)

Dividends are paid out approx. the 1st and 15th of each month.

Brokerage is done for you within the SMA. Wholesale brokerage 0.055% plus GST Settlement $0.87 per security transaction line.

No, you can stagger in your funds via BPAY if you would like, the minimum investment does have to be $50,000. We do ask that you let us know how much you will be opening your account with as Praemium does hold off allocating your funds until the full amount stated on your application has arrived.

The performance fee is subject to a “high water mark” which is your initial investment to begin with, and then increases when any outperformance fee is paid – eg if your portfolio outperforms the benchmark by 2% and a 0.2% outperformance fee (10% of the 2%) is paid on that, the high watermark will adjust so that there will need to be further outperformance beyond that 2% before any further performance fee will be paid (so you don’t pay multiple performance fees on an individual period of performance).

CHESS details will be created for your SMA Fund.

APIR codes would be generated by the independent body for participants. www.apir.com.au We don’t require our SMA model managers to have an APIR code as we use our internal system.