Individual Investors

Altair is a boutique Australian shares investment manager which has a long history in operating managed discretionary accounts (MDAs) and managed funds. As an independent (non-bank), staff owned business, our interests are better aligned with the needs of our clients.

With a heritage in MDAs, Altair understands that financial needs change and evolve as events occur in investors’ lives. Over time, as wealth increases and financial needs become more complex, an investor may require customisation, for instance to provide tax efficient outcomes.

The Altair Managed Portfolio Service is an MDA offering ideally suited to providing portfolio customisation and building long-term wealth for investors. Backed by a highly experienced investment team, MDA investors can enjoy the combined benefits of directly owning Australian shares with Altair’s investment expertise. MDA strategies offered are income or capital growth options.

Why choose an MDA?

A managed discretionary account (MDA) is a professionally managed portfolio of financial assets which are beneficially owned by the individual investor or entity. Under this arrangement, the investor delgates the day-to-day decision making for the portfolio to the professional investment manager.

Unlike a managed fund, an MDA is not unitised, which gives the investor ownership of all assets in the portfolio. In a managed fund investors’ assets are pooled, so the actions of other investors can impact an individual, particularly when it comes to tax outcomes. Through individual ownership an MDA investor can directly benefit from franking credits and share buybacks.

Another benefit is reliability of income. In an MDA the investor earns and receives income as it is paid by the underlying company. There is no need to wait for a distribution period.

In a world where many are ‘time poor’, an MDA can provide an efficient, convenient and cost-effective use of time for the investor and any related parties such as accountants and advisers, both on a daily basis as well as portfolio reporting services.

How we manage shares

As an active manager, Altair’s investment decisions are underpinned by a simple, yet powerful philosophy – we believe that change is a key influence of company performance, and its impact is often mispriced by the share market. We look for companies that are adaptive or innovative in the face of change. In our view, our ability to recognise the nature, timing and impact of change on a stock gives us a competitive edge.

Our team applies a consistent evaluation process by using in-house systems to filter and rank stocks on a range of investment criteria to arrive at a list of our best ideas. We are a high conviction manager, which means we stand by our investment decisions by investing in our best investment ideas.

Finally we construct our portfolios adjusting for risk so that we don’t have too much exposure in a particular stock or industry that may result in volatile returns. We don’t use derivatives, short-selling or leverage to generate returns. This means there are no extra risks from stock trades or adverse tax consequences that can result from using such instruments.

The greatest attraction of an MDA is its flexibility and transparency.

With an MDA the investment strategy is designed around individual needs, aligning wealth objectives and investment outcomes. It can accommodate specific restrictions. For example, in a shares portfolio an investor can place stock or sector exclusions. It can also be altered to suit an investor’s changing circumstances.

What’s more, investors get complete transparency regarding portfolio activity with itemised transactions, dividend information, fees and valuations.

Portfolio options

For a minimum of $300,000 per portfolio you can get started with the Altair Managed Portfolio Service, which offers a choice of two Altair-managed Australian shares portfolios: growth or income-focussed.

1. CONCENTRATED MANAGED PORTFOLIO

This portfolio is designed for investors who are in capital accumulation mode and aims to provide capital growth over the medium to long-term. Our strategy is to focus on companies that display a sustainable competitive advantage; a favourable industry exposure; and are well managed operationally and financially.

2. INCOME MANAGED PORTFOLIO

This portfolio is designed for investors seeking a stable, tax efficient income stream with the potential for long term capital growth. Our strategy is to focus on companies that offer stable and recurring tax efficient dividends that are higher than the market average. We also consider companies that are planning to return capital to investors or those we expect to mature into higher yielding stocks.

You can impose restrictions on securities and sectors within either of these portfolios. A mix of both strategies can also be used to provide a solution of income and capital growth to suit your needs. Talk to us about portfolio options.

Is an MDA suitable for you?

There are a number of reasons why investors may choose an MDA service. Some investors want a more tax effedctive strategy, and others want greater control and flexibility with their investments. Here are a few reasons investors are choosing MDA strategies:

Improve tax positions through franking credits /share buy-backs

Receive regular income through dividend strategies

Build a portfolio suited to the strategy of a self-managed super fund

Apply stock or sector exclusions to satisfy ethical constraints or incorporate tax considerations

Manage entry into the sharemarket (cash flow/market timing/in-specie transfers) to deal with an inheritance

Manage executive options (including ‘blackout’ periods)

Address different financial objectives and tax obligations between spouses

Build a portfolio that accounts for the needs of a family trust

To learn more about our MDA portfolios please contact our sales team on 02 9299 5499 or 1300 626 484