For Australian investors it is worth highlighting the possible efficiencies from a taxation perspective of using the three Beanstalk 20 Shares Portfolios (1 above) in a Separately Managed Account (SMA) structure.      

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These three interchangeable portfolios provide a simple and efficient way of managing individual risk tolerances and market cycles. For example, an investor might choose to be fully invested at the start of a market cycle, more conservatively positioned as the cycle matures and then shorting the market during the correctional phase. Such an investor would move from the Beanstalk 20 Shares Portfolio to the Beanstalk 20 + CASH Portfolio and then, finally, to benefit from the correction, move to the Beanstalk 20 + SHORT Portfolio. After the correction, the investor might move back to the original portfolio, the Beanstalk 20 Shares Portfolio. 

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The three portfolios contain the same shares in equivalent proportions but different cash levels. As the investor moves between the portfolios, depending on the market cycle or risk tolerance, only that portion of the underlying shares moving to cash experiences a capital gains tax event.

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In this way, investors can manage market risk without having to liquidate an entire portfolio while also retaining exposure to Beanstalk's active asset allocation. This adds flexibility to existing tax-efficient portfolios.

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