Risks and Benefits

All investing carries some level of risk. Stock or share market investing is no exception. It is prudent to have a full understanding of the risks associated with any investment (as well and the fees) before deciding to invest. We have included on this page some of the risks you should consider before making an investment in a William Shaw Managed Account. This list is by no means exhaustive and we would encourage you to contact us and discuss your financial position so you can gain a better understanding of the risks before making a decision going ahead with your investment.

When opening an account at William Shaw you will be asked to complete a KYC or Know Your Client Questionnaire which will help us determine your risk profile and if an investment in our Managed Accounts is suitable for you.

Although we trade the same positions for each client we do vary the amount of cash we hold as a percentage of the overall account to take into account clients varying tolerances to risk.

Other considerations

- If you haven’t already, you are placing your trust in us as the adviser and our ability to make profits in the share market (click here to view our performance chart). Because of this, it is important that you make every effort to get to know your advisor and his or her methodology and investment style to ensure that they fit with your investment and risk profile. It would also be very important to understand their level of experience and qualification before investing.

- In the case that your account is profitable, 20% of these profits will be charged as performance fees. However unless profits are made the ongoing fees are considerably lower by comparison than your average managed fund. For a full list of our fees please Contact Us for a copy of our Financial Services Guide (FSG) or call us directly on (03) 8602 1702.

What are the benefits of a Managed Account?

- Through the fee structure (outlined in the Discretionary Agreement) the adviser’s interests are aligned with yours – the adviser will charge institutional brokerage rates for your transactions and a management fee to support the reporting aspect of the account, but will charge a performance fee only when profits are made in the portfolio, so that the adviser only makes money if you do.

- If there are no opportunities, your adviser will therefore not be motivated to transact simply to generate brokerage or ‘churn’ your account, because he/she is not motivated by brokerage charges, but by performance.

- Direct Ownership – Using our Managed Accounts structure you hold the shares directly in what ever entity you choose (or your personal name). This sort of structure is particularly popular with SMSF’s (Self Managed Super Funds) because you also get all of the taxation benefits of holding the shares directly.

- Within 48 hours of any new investment decision, you will be sent an update, with information on why a position was bought or sold, along with regular updates about the positions you’re still in.

- The adviser has their own money in the market, commonly in the very same investments as you are in; you know up front that the adviser’s money is where their mouth is.