INVEST WITH MARCUS
In order to make life simple I have established a two Separately Managed Accounts (SMAs - a type of managed fund) which allows Members to invest with us.
"SMA" is a bit of jargon. From your point of view consider it as a fund, a mechanism that allows us to do your stock picking for you, that effectively appoints us as your own personal fund manager.
We have invested our own money into the SMA and offer Members and non-Members the opportunity to invest alongside us. WE have two funds the Marcus Today SMA (growth focused) and the Marcus Today Income SMA.
A feature of an SMA that might interest you is that through this structure you are the beneficial owner of the underlying shares, we are simply directing traffic. You are not buying units in our fund as you might with a managed fund, you (we) are buying the individual underlying stocks beneficially in your name (they are actually held beneficially in your name by the custodian HSBC).
Unlike a managed fund that has its own tax position, using the SMA you can utilise your own tax status and collect your own franking credits, which for pension phase investors is essential. It also means that if Marcus Today went bust we have no beneficial interest in your shares. They, and your cash, are instead held by the custodian (HSBC) with you as the beneficial owner.
The Marcus Today SMA is focussed on Australian listed growth stocks of up to 50 Australian equities, actively managed by the Marcus Today investment team headed by Marcus Padley. The aim is to achieve superior "total return", combining capital growth with income with the focus on capital growth.
The Marcus Today SMA is deliberately designed to be at the aggressive end of the investment spectrum relative to the usual managed fund definitions (growth/conservative/cash etc) - if you want to join the herds of balanced portfolio investors that return you the average returns less fee you can achieve that without us. We are focused on capital growth.
We charge a 10% performance fee (we get 10% of any outperformance subject to certain conditions) - which may put you off - but it is a statement that we are highly geared to our and your success, not just because we are invested ourselves, but because we make more money if you make more money. Our interests are aligned. Without a performance fee our goal would simply be to sell you the SMA and keep you in it, not spend all day worrying about making money for you, which is what we do.
Here are a few explanatory downloads:
The investment strategy involves:
- Fundamental stock analysis, with particular focus on return on equity, future earnings growth and relative valuations (PE relative to history 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 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.
The Marcus Today SMA is designed for investors who:
- Are seeking an actively managed Australian equity portfolio with a relatively aggressive risk profile.
- Are seeking medium to long term capital growth, with some income; and
- Are prepared to accept some fluctuation in short term returns
The main benefits of investing into the Marcus Today SMA are:
- Access to Marcus Today's stock picking skills and portfolio construction expertise.
- This is not the same structure as a Managed Fund, you retain the beneficial ownership of all shares.
- Cost-effective investing with a trade netting policy (buys and sells are matched across the host platform) means low transaction costs.
- 24/7 website based transparency of stocks held within your own personal portfolio provided through the Praemium administration platform.
- Automatic rebalancing of your portfolio when we make changes to stock held.
- Tax effectiveness - compared to managed funds, investors do not inherit the capital gains of other investors - you get your own franking credits, they are not shared across all the other investors as they are with most managed funds.
- Consolidated reporting.
- Portability of stocks - ability to move securities into or out of accounts at any time.
Talk to our team or send in your application: firstname.lastname@example.org or call 0428 062 327. You can also send in your applications via Fax on 03 9867 2131 or post it to Chichi Nwokocha, Marcus Today Suite 3, Level 3, 636 St Kilda Road, VIC 3004.