Betashares and CFS have launched new retirement income SMAs, expanding ETF-based options for advisers seeking income and growth solutions.
Betashares has launched new Retirement Income separately managed accounts (SMAs) on the CFS Edge platform, expanding the range of retirement-focused investment options available to financial advisers and their clients.
Announced on 14 January, the new SMAs are designed to meet the specific income needs of retirees, combining capital growth objectives with enhanced income generation.
The ETF-based portfolios draw on Betashares’ institutional-grade investment solutions and portfolio construction expertise, using a mix of defensive, smart beta and equity income strategies.
According to the ETF provider, the portfolios aim to enhance income by approximately 2 per cent per annum above traditional benchmark portfolios.
Betashares said the portfolios are structured to deliver differentiated sources of income while maintaining similar risk-adjusted return characteristics to less income-focused portfolios.
The approach avoids concentrated exposures to low-growth sectors or non-investment-grade credit to generate yield.
The new Retirement Income SMAs complement Betashares’ existing Dynamic Managed Accounts range and come amid growing adoption of managed accounts across Australia’s financial advice sector.
Managed accounts can improve advice efficiency by providing institutional-grade portfolios with transparency and reporting, the provider said.
Betashares CEO Alex Vynokur stated the new portfolios were designed to support retirees and advisers.
“Financial advisers play an integral role in helping their clients meet their financial goals, particularly in retirement.
“We’re proud to deploy our long-standing multi-asset expertise to deliver a range of unique investment solutions within a structure that assists both financial advisers and their end clients. Our new retirement income SMAs are designed for the needs of retirees by delivering opportunities for capital growth and higher income,” Vynokur said.
“The accessibility of high quality investment solutions that assist people to meet their income goals in retirement is one of the biggest challenges in wealth management, particularly given the growing number of people heading into that phase of their lives. We’re excited to work with CFS on meeting this important goal and providing robust investment solutions to assist financial advisers and their end clients.”
CFS executive director of managed accounts Francy Taylor said the partnership would support advisers managing clients transitioning into retirement.
“CFS’s managed account offer spans generational needs and accessing leading portfolio managers which helps advisers deliver stronger outcomes for their clients.
“We’re pleased to partner with Betashares to bring Retirement Income SMAs to CFS Edge, giving advisers ETF-based portfolios designed [for] clients moving into and through retirement.”
