Investments

Aura Ocean Advisors Pty Ltd is a partnership between Aura Financial Group and Ocean Asset Management. The partnership was established in order to share resources between the two organisations and to offer complementary investment solutions to a wider potential audience.

Aura Ocean Individually Managed Account (IMA)

The Aura Ocean Individually Managed Account (IMA) is a portfolio management service in which Aura Ocean Advisors (Aura Ocean) manages individual portfolios on behalf of clients under an Individually Managed Account Agreement, with all clients having similar portfolios. Instead of pooling assets together in a unit trust, the relevant assets are held directly by each investor.

Investment Approach
Aura Ocean’s investment approach is based on bottom-up, fundamental stock picking, with no use of leverage. Each position in our portfolios will stand on its own, based on our assessment of a significant discrepancy existing between current market price and intrinsic business value. Aura Ocean invests predominantly in Australian publicly-listed companies, is industry and market capitalisation agnostic and will seek to gravitate towards the opportunities that provide the best risk adjusted returns. Our portfolios are not managed to mirror any particular index and are not required to be fully invested at all times.

Key Benefits of an Aura Ocean IMA over typical Unit Trust structure for Investors

1. Tax Effectiveness – The IMA structure prevents the transfer of capital gains between clients that occurs under a typical unit trust structure, and may also allow clients to benefit from the tax advantages from discounted capital gains tax. The IMA structure also allows Aura Ocean to manage individual clients underlying tax positions more effectively.

2. Transparency – With an Aura Ocean IMA, investors are able to view how their money is being invested on a real-time basis. They are able to generate a variety of reports that provides full transparency as to the day to day movement in their portfolio as well as how their portfolio is performing. Typically, investors in unit trusts will only receive monthly or quarterly reports giving them a snapshot of how their money is being invested.

3. Direct Ownership – With an Aura Ocean IMA investors have direct ownership of the underlying securities in their portfolio, which are managed by Aura Ocean according to the Individually Managed Account Agreement. This is in contrast to a unit trust where investors own units in the unit trust, as opposed to direct ownership of the assets. Most unit trusts have the ability to limit redemptions of client funds at the discretion of the manager. With direct ownership of the underlying assets investors are able to maintain control over their assets.