Your guide to building a growth portfolio in an SMA

LiveWire

Sep 16

Professional management and direct ownership in one package? There’s a reason why sophisticated investors and advisers alike are gravitating towards separately managed accounts (SMAs). SMAs can be ...

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There’s a reason why sophisticated investors and advisers alike are gravitating towards separately managed accounts (SMAs). SMAs can be ...</p>\n\n<a href=\"https://www.livewiremarkets.com/wires/your-guide-to-building-a-growth-portfolio-in-an-sma\">Source Link</a>\n\n</div>\n","source":"livewire_stock","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Your guide to building a growth portfolio in an SMA</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nYour guide to building a growth portfolio in an SMA\n</h2>\n\n<h4 class=\"meta\">\n\n\n2025-09-16 08:13 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.livewiremarkets.com/wires/your-guide-to-building-a-growth-portfolio-in-an-sma><strong>LiveWire</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Professional management and direct ownership in one package? There’s a reason why sophisticated investors and advisers alike are gravitating towards separately managed accounts (SMAs). SMAs can be ...</p>\n\n<a href=\"https://www.livewiremarkets.com/wires/your-guide-to-building-a-growth-portfolio-in-an-sma\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK7507","symbol_name":"资源股","start_time":0,"source_url":"https://www.livewiremarkets.com/wires/your-guide-to-building-a-growth-portfolio-in-an-sma","article_id":"2567126254","we_media_id":null,"thumbnails":[],"rights":{"source":"livewire_stock","url":"https://www.livewiremarkets.com/wires/your-guide-to-building-a-growth-portfolio-in-an-sma","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2567126254","pubTimestamp":1757981628,"columns":[],"sourceInfo":{"source_id":"livewire_stock","name":"Livewire Markets"},"weMediaInfo":null,"summary":"Professional management and direct ownership in one package?There’s a reason why sophisticated investors and advisers alike are gravitating towards separately managed accounts . SMAs can be particularly well-suited to growth-oriented portfolios and offer transparency and control.In the first part of Livewire’s mini-series, I discussed the basics of how the SMA structure works. You can read more in this interview here. In the second part of the series, I’ll discuss what growth investing looks like in this structure and why investors use it for this purpose.Growth investing typically involves allocating capital to assets with strong potential for appreciation - such as equities, ETFs, managed funds, or alternative investments. SMAs allow investors to hold these assets directly, rather than through pooled vehicles like managed funds or ETFs. This direct ownership provides several advantages:. 85% to growth assetssuch as Australian and global equities. 15% to defensive assets or a cash buf","collect":0,"end_time":0,"defaultTopTitle":"livewiremarkets.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK7507":"资源股","BK7034":"财产与意外伤害保险","BK7095":"多种金属与采矿","WBC.AU":"WESTPAC BANKING CORPORATION","BK7510":"REITs概念","QUAL.AU":"VANECK MSCI INTERNATIONAL QU","BXB.AU":"BRAMBLES LTD","BK7511":"ESG概念","BK7099":"工业房地产投资信托","MQG.AU":"Macquarie","BK7046":"综合性资本市场","ALL.AU":"ARISTOCRAT LEISURE LTD","CBA.AU":"COMMONWEALTH BANK OF AUSTRALIA","BHP.AU":"BHP GROUP LTD","QBE.AU":"QBE INSURANCE GROUP LTD","SMA":"Smartstop Self Storage REIT Inc","GMG.AU":"GOODMAN GROUP","BK7064":"综合支持服务","ANZ.AU":"ANZ GROUP HOLDINGS LTD","BK7078":"赌场与赌博","BK7155":"工业房地产信托","BK7135":"综合性银行"},"translate_title":"在SMA中构建成长型投资组合的指南","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"QBE.AU":1,"WBC.AU":1,"ALL.AU":1,"QUAL.AU":1,"CBA.AU":1,"ANZ.AU":1,"SMA":1,"BHP.AU":1,"GMG.AU":1,"MQG.AU":1,"BXB.AU":1},"content_text":"Professional management and direct ownership in one package? There’s a reason why sophisticated investors and advisers alike are gravitating towards separately managed accounts (SMAs). SMAs can be particularly well-suited to growth-oriented portfolios and offer transparency and control. \nIn the first part of Livewire’s mini-series, I discussed the basics of how the SMA structure works. You can read more in this interview here. In the second part of the series, I’ll discuss what growth investing looks like in this structure and why investors use it for this purpose. \nWhy SMAs work for growth investors \nGrowth investing typically involves allocating capital to assets with strong potential for appreciation - such as equities, ETFs, managed funds, or alternative investments. SMAs allow investors to hold these assets directly, rather than through pooled vehicles like managed funds or ETFs. This direct ownership provides several advantages: \nTransparency: Investors can see exactly what they own, down to the individual security. \n\n\nTax efficiency: Unlike pooled funds, SMAs don’t carry embedded capital gains, allowing for better tax management. \nCustomisation: Portfolios can be tailored to specific goals, risk tolerances, or ethical preferences. \nFor high-net-worth individuals or those with longer investment horizons, these features make SMAs a powerful tool for compounding returns while maintaining control. \nWho should consider this approach? \nGrowth-focused SMAs are best suited to investors who: \nHave a medium to long-term time horizon (5+ years). \nAre comfortable with market volatility in pursuit of higher returns. \nPrefer transparency and control over their investments. \nHave investable assets typically starting from $250,000 and above. \nCosts vary depending on the provider and platform, but generally include: \nManagement fees ranging from 0.5% to 1.5% p.a. \nPlatform or custody fees, often between $100–$300 p.a. \nTrading costs, which are increasingly compressed or bundled into platform fees. \nBuilding a growth-focused SMA portfolio \nWe recommend clients start with clear goal-setting and asset allocation and invest through a structured model. \nSetting Targets and Allocations \nFor a growth investor, the target might be an annualised return of 10–12% over a five-year horizon. To achieve this, we typically allocate: \n85% to growth assets such as Australian and global equities\n15% to defensive assets or a cash buffer, depending on the client’s liquidity needs and risk profile\nSelecting the right investments \n\n\nWe identify high-quality investments based on: \nHistorical performance and volatility\nManager tenure and investment style\nSector and geographic diversification\nWe often blend direct equities with active and passive managed funds, ensuring both performance potential and tax efficiency. \nIt is well documented that it has been a challenging time for large-cap Australian equity managers, so you want a low-cost tracking error-aware manager, but with the benefit of direct ownership. We still want an active manager as we are worried about the concentration risk of the banks and miners in the Australian market.  \nOur direct equity sleeve has around 30 holdings, with the top weights being BHP (ASX: BHP), Westpac (ASX: WBC), Commonwealth Bank (ASX: CBA), ANZ (ASX: ANZ), and Macquarie Group (ASX: MQG). It is important to spread the risk by ensuring no one stock represents too significant an allocation, for example, our biggest weight, BHP, is only 1.74% of the portfolio. \nWe also like long-term compounders like Aristocrat (ASX: ALL), Goodman Group (ASX: GMG), QBE (ASX: QBE) and Brambles (ASX: BXB). \nWhen it comes to global allocations, you can consider spreading the risk by using different styles of managers. For example, we access a systematic fund named Vinva, fan favourite ETF VanEck MSCI International Quality ETF (ASX: QUAL), Vanguard International Shares Index, Lifecycle Global Share and a value tilt with Lazard Global Equity Franchise and Talaria Global Equity. \nWe took this view to take a value bias due to valuation expansion, and seemingly a lot of stocks are priced for perfection. We think that active managers could add value in this space, although we note it is a contrarian view. \nDefensively, we have added Pimco Diversified Fixed Interest to get exposure to active duration both domestically and abroad. And we have the Yarra Enhanced Income Fund, which is one of the best funds in its asset class, and a very trustworthy management team. \nRebalancing and strategy reviews \nTypically, SMAs will offer rebalancing quarterly to maintain target allocations and manage risk. There should also be regular strategy reviews to assess performance against benchmarks and client objectives, adjusting the portfolio as needed. Generally, such reviews in model portfolios are annual, depending on your provider. \nThis growth-focused SMA strategy offers a disciplined yet flexible framework for investors seeking to build wealth over time. In the next article, I’ll explore how SMAs can be used to generate short-term income, including the role of franking credits and tax efficiency. \nLook out for the next article in the mini-series, where I’ll discuss how to build an SMA to generate reliable income. \n\n\n\n\nNever miss an update\n\n    Enjoy this wire? Hit the ‘like’ button to let us know. \n    Stay up to date with my current content by \n    following me below and you’ll be notified every time I post a wire","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":false,"code":"91000000","status":"200"}}}