We have a professional team of analysts who have successfully picked value stocks that have been largely ignored by large funds managers because they are too small or not researched by many stockbrokers.
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(PRWEB) August 14, 2007
Fat Prophets, one of Australia's leading independent research houses, has announced the creation of its own Separately Managed Account (SMA) - giving investors the opportunity to access a professionally managed share portfolio of either Australian shares or mining and resources stocks, or a combination of both.
The launch of the SMA follows the successful listing of Fat Prophets' independent boutique-listed investment company, Fat Prophets Australia Fund Limited ("Fat Fund") in 2005, now valued at more than $40 million.
The SMA and Fat Fund are separate entities to the publishers of Fat Prophets, and while the SMA stock investments are largely inspired by the well-known investment newsletters Fat Prophets and Fat Prophets Mining, the managers have the ability to disregard the stock picks.
As part of the expansion of the fund management operation Angus Geddes, founder and Chief Executive of Fat Prophets, will be leading the investment team behind the SMA, contributing his considerable stock picking experience.
BlackRock, which merged last year with Merrill Lynch Investment Managers, is the responsible entity of the SMA and provides the platform for the SMA's administration and stock transactions.
Mr Geddes said, "The launch of our SMA is a natural extension to our funds management business, offering our subscribers and the general public the opportunity to cost effectively and efficiently tap into the current share market boom.
"Our SMA offers a major advantage to investors over managed funds by allowing them to be the beneficial holder of a direct share portfolio rather than units in a pooled fund of investments. This will provide many investors with much greater flexibility than they have had in the past", he added.
The Fat Prophets Australasian and Mining reports have very successful records in picking Australian industrial and mining stocks, with annualised returns from the hypothetical portfolios over the last three years to 30th June 2007 of 29.2 per cent and 46.5 per cent respectively.
Mr Geddes said, "We have a professional team of analysts who have successfully picked value stocks that have been largely ignored by large funds managers because they are too small or not researched by many stockbrokers."
"The SMA investment managers will be using the Fat Prophets' research reports to identify good value stocks, as well as other sources of research," he added.
The Fat Prophets SMA has significant advantages over pooled funds, with SMA investors not subject to paying the tax on other investors' capital gains, while each SMA account can be customised to include investors' existing shareholdings and can exclude specific stocks, if desired.
Fat Prophets SMA offers excellent transparency, with investors able to access an online report at any time providing relevant information about the portfolios, including the current holdings, performance data, capital gains tax and charges.
With an entry threshold of $25,000, SMA investors can withdraw from or add to their accounts at any time with lump sums or through a contribution plan, while they can be leveraged through the use of a margin lending facility.
The SMA currently provides investors with access to two very different investment strategies.
The Fat Prophets Concentrated Australian Share Model Portfolio, designed for investors seeking a focussed basket of up to 30 stocks with a medium to long-term investment horizon. The investment objective is to deliver income and capital growth while also outperforming the S&P 200 ASX Accumulation Index.
In contrast, the Fat Prophets Mining and Resources Model Portfolio is designed for investors seeking exposure to a diversified portfolio of up to 40 resource and mining stocks listed on the ASX, with the aim of outperforming the ASX 300 Resources Accumulation Index.
The fees associated with both model portfolios are very competitive, ranging between 1.6% and 1.85% depending on the model/s selected, plus out-performance fees.
Fat Prophets expects the majority of SMA accounts will initially be taken up by Fat Prophets' subscribers, with online applications open to them and the general public through http://www.fatprophets.com.au/funds/ or by calling 1300 853 328.