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Who is Marcus Today?

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.

What is the difference between a Marcus Today SMA vs a Managed Fund?

Marcus Today SMA Traditional Managed Fund
You are the beneficial owner of a direct share portfolio You own units in a pooled fund of investments
You retain your individual status regarding capital gains tax You are exposed to inheriting the capital gains of
other fund members
All franking credits accrue to you personally Franking credits are shared between all unit holders
You can customise and diversify your share portfolio The fund’s manager determines your entire portfolio
You can access online reports with all the information you need on your portfolio 24/7 The fund’s reports are generally issued annually

What are the investment options?

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.

Is there a minimum investment amount?

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

Can I choose not to hold a particular stock?

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.

Can I make additional investments into the portfolio?

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.

Can I use a Margin Loan to invest?

No, not at this time.

Can I make withdrawals?

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).

How are dividends paid?

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.

How are fees and expenses paid?

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.

What are the adviser fees?

There are no Adviser fees.

What happens if the cash account balance falls below 1% or there are insufficient funds to pay fees and expenses?

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.

How are corporate actions dealt with?

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.

How can I track the performance of my portfolio?

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.

What are the total annual fees for $50 K investment (fixed fee plus any percentages)?

Initial Admin fee of 0.33% + Initial Investment fee of 0.75%
  • Administration fee:
$165 p.a. (0.33% x 50,000)
  • Investment fee:
$375 p.a. (0.75% x 50,000)
  • Expense Recovery:
Up to $65 p.a.
  TOTAL: $605

Who makes the SMA investment decisions?

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.

How do I invest in the Marcus Today SMA?

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.

I am looking for a fund to provide income, hopefully generated by the gain/performance off the fund. Do you think I could use the Marcus Today SMA’s to achieve this objective? 

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

How is reporting handled?

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

What reporting is produced at Tax time?

Tax packs are sent directly to clients and will also be uploaded to your Investor Portal. Tax packs are sent in PDF format but can also be sent in CSV so your accountant can upload it into there accounting software. *Please note our Praemium SMA’s are Audited.

Tax packs are usually released in October, when invested companies in the SMA across the 12 months will release their respective reports by October.

Tax packs will include:

  • Portfolio valuation as of the 30th June
  • Asset class allocation
  • Investment movement summary
  • Income and Tax credits
  • Additions & Withdrawals
  • CGT
  • Tax Summary
  • Cash account
  • Transactions

What is the bank the custodian uses and where will my money be held?

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.

Which platform do you use and why was it selected?

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.

Are there adviser trailing fees?

No

Are there custody fees?

No

Is there an investment manager fee?

No, just the Investment Fee’s

Once funds are received in to my SMA account, are they immediately invested?

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

Can I see how my investment is performing?

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.

What are the conditions for SMA account closure?

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.

What is meant by ‘Utilise your own tax status’. How does it work?

When you enter into the SMA you do not inherit past performance. Your starting position into the SMA is where you will begin.

How does my Self Managed Super Fund (SMSF) retain beneficial ownership? How does it work?

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.

Can you family aggregate SMA accounts?

Yes, you can family aggregate SMA accounts

What kind of reporting will be provided?

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.

If I already hold equities in certain companies, can I request no further investment for my portfolio in my SMA allocation?

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.

What is the difference between Management/Admin fees are they the same i.e. 0.75%?

Marcus Today SMA only charge the admin fee of 0.75%; Praemium the SMA administration platform we use charge an Investment fee of 0.33%

Can I elect to have dividends paid out? If yes, when are dividends usually paid?

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.

The investment fee is charged on a monthly basis based upon the market value of funds under management in that month, is this correct?

Fee payments are calculated based on the previous month’s expenditures. Fees are usually deducted the first week of each new month.

What is meant by ‘low transaction costs’ when I am not buying or selling shares, instead SMA is doing it?

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

Is there an obligation to put all my initial amount in at once? It may be more or less or staggered over time?

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.

What is a ‘High-Water Mark’?

A high-water mark is the highest peak in value that an investment fund or account has reached. This term is often used in the context of fund manager compensation, which is performance-based. The high-water mark ensures the manager does not get paid large sums for poor performance. If the manager loses money over a period, he must get the fund above the high-water mark before receiving a performance bonus from the assets under management (AUM).

EXAMPLE:

Assume an amount of $100,000 is invested for 12 months, and the Performance Fee is calculated annually.

If Marcus Today SMA return for the year is 25% and the benchmark return is 20% then the excess performance is 5% and the Performance Fee would be calculated as follows:

the investment return achieved is 25% of $100,000 = $25,000
the benchmark return is 20% of $100,000 = $20,000
value added (excess performance above benchmark) is ($25,000 – $20,000) = $5,000

The Performance Fee is 10% of excess performance above benchmark, then the fee charged would be 10% of $5,000 = $500.

What is the benchmark for the Income SMA?

the S&P/ASX 200 Industrials

What is the benchmark for the Growth SMA?

the S&P/ASX 300 Accumulation Index