BlackRock launches Super SMA

BlackRock Investment Management Australia has launched a superannuation version of its separately managed account (SMA), with the expectation it will have broad retail appeal.

The Super SMA is said to offer the control, transparency and direct share capability of a self-managed superannuation fund (SMSF), with the advantage of a professionally managed portfolio.

Co-head of BlackRock’s customised portfolio service, James Langlands, said the SMA will enable people to have their own portfolio of stocks, invested according to model portfolio strategies set by their choice of fund managers.

“Clients don’t have the cost of establishing their own SMSF and gain the cost-saving advantages of fewer trades and low brokerage while advisers benefit from streamlined administration,” Langlands said.

The Super SMA Superannuation Fund will be administered by Grosvenor Pirie, while the trustee will be The Trust Company.

Insurance cover will be available through AIA, with a choice of death cover, total and permanent disability and income protection cover.

Model portfolios include BlackRock, iShares and SPDR exchange traded funds, Ausbil Dexia, BT, Fortis, Perennial and UBS.

BNP Paribas Australian Hybrid and Fixed Income offerings, as well as the Lonsec Balanced, Growth and High Growth Direct model portfolios are new additions.

Administration fees have also been capped for accounts greater than $2 million to make the product more attractive for investors with larger accounts.