Zenith Partners, a leading rating house, in its first ever review of the Australian Equities Separately Managed Accounts (SMA) sector, has awarded all three DNR Capital SMA strategies a ‘Recommended’ rating.

The three well supported strategies are: DNR Capital Australian Equities Income Portfolio, DNR Capital Australian Equities High Conviction Portfolio and DNR Capital Australian Equities Socially Responsible Portfolio.

Zenith notes that: “DNR was one of the pioneers of the SMA structure domestically and remains the largest SMA provider in the Australian market place.”

The strategies offer investors a relatively concentrated income orientated portfolio of Australian equities through a separately managed account (SMA) structure. DNR Capital’s investment process aims to identify high quality companies trading at attractive valuations.

“Zenith draws confidence in the long standing team and investment process, highlighting DNR’s long and successful track record managing the strategy.”

Zenith believes DNR Capital’s investment approach is logical and robust. In addition, it notes that DNR Capital’s investment process has generated impressive results since inception.

Robert White, Chief Executive Officer DNR Capital adds: “We are pleased to receive such strong ratings across all our strategies from Zenith. It’s recognition of a lot of hard work and strong investment outcomes for our clients. The initiation of SMA specific ratings by Zenith is another pleasing development and a clear sign of the strong growth in this space.”

Zenith believes there are a number of key attractions from both a taxation and investment perspective of a separately managed account (SMA) structure, which include:

  1. New investors do not “buy” into accumulated capital gains as can be the case with managed funds.
  2. Tax implications are not impacted by other investors’ actions, as they can be in a managed fund.
  3. Investors have greater control over when stock holdings are realised from a tax perspective, however, Zenith cautions that doing this on an extensive basis significantly dilutes the value of having a professional investment manager in place.
  4. Any losses do not get “trapped” in a trust structure.
  5. The structure combines the advantages of professional asset management with the flexibility of direct securities ownership.
  6. Portfolio stock holdings and weightings are transparent, unlike a managed fund.
  7. Investors do not have to sell their entire holdings to move the management of the portfolio, as the stocks are beneficially held directly by the investor.

The DNR Capital SMA strategies are currently available on the following platforms: AMP Personalised Portfolio Service, BT Panorama, HUB24, Linear, Macquarie Wrap, Mason Stevens, Netwealth, OneVue, Powerwrap and Praemium.

About DNR Capital

Founded in 2001, DNR Capital is an independent Australian investment management company that delivers client-focused, quality, investment solutions to institutions, advisers and individual investors. DNR Capital is a signatory to the Principles for Responsible Investment (PRI).

DNR Capital’s leadership in the Separately Managed Account (SMA) sector was reaffirmed by being named SMA of the year at the Money Management Fund of the Year Awards 2017 for its Australian Equities High Conviction SMA.

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IMPORTANT NOTE: The information relating to DNR Capital has been prepared by DNR Capital Pty Ltd, AFS Representative – 294844 of DNR AFSL Pty Ltd ABN 39 118 946 400, AFSL 301658. Whilst DNR Capital has used its best endeavours to ensure the information within this document is accurate it cannot be relied upon in any way and you must make your own enquiries concerning the accuracy of the information within. The information in this document has been prepared for general purposes and does not take into account your particular investment objectives, financial situation or needs, nor does it constitute investment advice. Before making any financial investment decisions you should obtain legal and taxation advice appropriate to your particular needs. DNR Capital will not be responsible or liable to anyone who acts or relies upon anything contained in, or omitted from, this document. Past performance is not indicative of future performance.

The Zenith Investment Partners (“Zenith”) Australian Financial Services License No. 226872 rating (assigned June 2017) referred to in this document is limited to “General Advice” (as defined by the Corporations Act 2001) for Wholesale clients only. This advice has been prepared without taking into account the objectives, financial situation or needs of any individual. It is not a specific recommendation to purchase, sell or hold the relevant product(s). Investors should seek independent financial advice before making an investment decision and should consider the appropriateness of this advice in light of their own objectives, financial situation and needs. Investors should obtain a copy of, and consider the PDS or offer document before making any decision and refer to the full Zenith Product Assessment available on the Zenith website. Zenith usually charges the product issuer, fund manager or a related party to conduct Product Assessments. Full details regarding Zenith’s methodology, ratings definitions and regulatory compliance are available on our Product Assessment’s and at http://www.zenithpartners.com.au/RegulatoryGuidelines.