Asset Management

Asset Management

What we do

Elston is one of the largest privately owned financial services companies in Australia, currently managing over a billion dollars in assets making us one of Australia’s largest* providers of Managed Account Solutions.

Established in 2011, we are focused on delivering conservative investment solutions to help investors build and preserve their wealth.  We have established a consistent track record of strong risk-adjusted returns through a consistent, methodical approach to investment.

Elston brings experience and a disciplined investment process as the manager responsible for constructing the portfolio and the ongoing monitoring and rebalancing of a variety of managed account investment vehicles.

*Referenced in 2016 IMAP Managed Account Survey

Elston offers 2 main types of managed accounts; Individually Managed Accounts (IMA) and Separately Managed Accounts (SMA). The managed account structure is highly desirable as it provides:

  • legal ownership
  • control
  • transparency
  • portability
  • tax efficiency
  • customisation

The Elston IMA is designed for investors who require direct beneficial and legal ownership of their assets, however still seek professional investment management and portfolio administration. This allows for true after-tax management of assets so the full benefits of strategic tax and planning advice can be realised.

The Elston SMA is designed for investors who require custodial services for their account such as administration, investment management and custody services, yet still want the flexibility and transparency of direct share ownership.

 UnitisedSMAIMA
Individual portfolio constructionNoNoYes
CustomisableNoLimitedYes
Direct legal and beneficial ownershipNoNoYes
Are individual trades possible?NoNoYes
Individual tax managementNoPartialYes
Trade executionN/AAt marketManaged
Corporate actions managedBy fundBy modelIndividually
Manager contactNoLimitedYes
Integrate/segregate existing holdingsNoLimitedYes

After-tax investing (managing for after-tax outcomes)

Elston offers integrated after-tax management for each of our investment strategies. For example, all of our customised IMA portfolios are managed on an after-tax basis. After-tax investing can be a source of returns to clients called ‘tax alpha’ and is particularly important investing into direct assets. Our managed account platform is well suited to efficiently managing tax within client portfolios. Not only can we increase after-tax investment returns, we can manage specific after tax outcomes based on parcel based matching.

Our investment process may a number of techniques to deal with taxes:

  • Forecasting franking credits and recognising their value based on a clients’ tax rate
  • Recognising CGT in the pre and post trade compliance process
  • Measuring portfolio returns on a before and after-franking credit basis
  • Managing holding period with respect to the ‘less than 12 month rule’
  • Participating in off-market buybacks
  • Awareness and understanding of CGT transitional rules

To an extent we can also enhance after tax outcomes at a model level for SMA’s, for example, through security selection and by controlling the timing of execution.

The Elston advantage

We have a well-established record of excellent investment performance, based on a proven investment philosophy and process. Because everyone is different, our service is designed for individuality.

A team of eight highly experienced investment specialists form independent investment views (our portfolio managers have an average of 19 years experience with no turnover), to ensure the best outcome.

Our capabilities include:

  • A rigorous investment platform and systems formed on a proven investment philosophy and process
  • Creating customised portfolios depending on investor’s risk profile, investment goals and personal preferences
  • Forming independent investment views from a team of 8 investment professionals, average portfolio manager experience is 19 years with no turnover
  • Managing conservatively positioned, after-tax, and risk customised portfolios
  • Utilising the latest algorithmic trading to process orders efficiently, ensuring that portfolios trade settle on time, every time
  • Smart rebalancing and constant monitoring and surveillance of portfolios to ensure positions or asset class exposures don’t drift outside of set guidelines
  • Delivering timely astute analysis, commentary and presentations making it easy to keep clients well informed
  • Sophisticated after-tax management and individual parcel tracking and portfolio grouping to maximise after tax return alpha
  • Data integration to reduce administrative overheads

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