PERFORMANCE TO 31 JANUARY 20171 MONTH3 MONTH6 MONTH1 YEARSI* (P.A.)
InvestSMART Income Portfolio -0.41% 1.98% -0.67% 7.08% 4.11%
Morningstar Multisector Moderate Index -0.37% 1.20% -0.37% 5.20% 4.24%
Excess to Benchmark -0.04% 0.78% -0.30% 1.88% -0.14%
RBA Cash Rate 1% 0.21% 0.63% 1.27% 2.73% 2.94%
Excess to Objective -0.62% 1.35% -1.94% 4.35% 1.16%

Growth of $10,000


Income Reinvested


Asset Allocation as at 31 JANUARY 2017




Source: Praemium, RBA
Returns are after fees and before expenses. Returns are shown as annualised if the period is over 1 year. * Since Inception (SI) date is 29 December 2014.


Peformance Summary to 31 January 2017


 

Contribution to Return 1 Month to 31 January 2017


Important Information

While every care has been taken in preparation of this document, InvestSMART Financial Services Limited (ABN 70 089 038 531, AFSL 226435) (“InvestSMART”) makes no representations or warranties as to the accuracy or completeness of any statement in it including, without limitation, any forecasts. Past performance is not a reliable indicator of future performance. This document has been prepared for the purpose of providing general information, without taking account of any particular investor’s objectives, financial situation or needs. An investor should, before making any investment decisions, consider the appropriateness of the information in this document, and see professional advice, having regard to the investor’s objectives, financial situation and needs. This document is solely for the use of the party to whom it is provided. This document has been prepared for InvestSMART by InvestSense Pty Ltd ABN 31 601 876 528, Authorised Representative of Sentry Asset Management Pty Ltd AFSL 408 800. Financial commentary contained within this report is provided by InvestSense Pty Ltd. The information contained in this document is not intended to be a definitive statement on the subject matter nor an endorsement that this model portfolio is appropriate for you and should not be relied upon in making a decision to invest in this product. The information in this report is general information only and does not take into account your individual objectives, financial situation, needs or circumstances. No representations or warranties express or implied, are made as to the accuracy or completeness of the information, opinions and conclusions contained in this report. In preparing this report, InvestSMART and InvestSense Pty Ltd has relied upon and assumed, without independent verification, the accuracy and completeness of all information available to us. To the maximum extent permitted by law, neither InvestSMART, InvestSense Pty Ltd or their directors, employees or agents accept any liability for any loss arising in relation to this report. The suitability of the investment product to your needs depends on your individual circumstances and objectives and should be discussed with your Adviser. Potential investors must read the PDS, Approved Product List and FSG along with any accompanying materials. Investment in securities and other financial products involves risk. An investment in a financial product may have the potential for capital growth and income, but may also carry the risk that the total return on the investment may be less than the amount contributed directly by the investor. Past performance of financial products is not a reliable indicator of future performance. InvestSense Pty Ltd does not assure nor guarantee the performance of any financial products offered. Information, opinions, historical performance, calculations or assessments of performance of financial products or markets rely on assumptions about tax, reinvestment, market performance, liquidity and other factors that will be important and may fluctuate over time. InvestSense Pty Ltd, InvestSMART Financial Services Limited, its associates and their respective directors and other staff each declare that they may, from time to time, hold interests in Securities that are contained in this investment product.

Designed for investors seeking a sustainable income and capital protection over the short term, the InvestSMART Diversified Income Portfolio invests in a diverse range of income-generating securities, managed as one tailored portfolio. And because your portfolio uses Exchange-Traded Funds (ETFs) to diversify across international markets and asset classes, the Diversified Income Portfolio helps keep both fees and risk under control.

All InvestSMART Diversified portfolios are continually managed by our expert team of analysts and overseen by our Investment Committee, to ensure you have the right mix of securities to meet the investment objectives with the benefits of strategic asset allocation expertise and low cost rebalancing.

Find out how this portfolio may fit within your investment strategy. Contact us at support@investsmart.com.au or 1300 880 260 to speak to one of our product specialists.

Overview

Style: A largely defensive portfolio with few growth assets
Benchmark: The Morningstar Multisector Moderate Index
Objective: To maximise annual income while minimising capital losses over three year rolling periods
Risk Rating: Lower risk
Suggested Timeframe: 5 years +
Income Potential: Higher income
Growth Potential: Lower growth
Investment Fee (inc. GST): 0.65% - 0.97%
(depending on amount invested)
Estimated Expense Recovery $30 - $60 per investor per year
Minimum Investment: $5,000.00
Estimated income per annum 4.07 %
Asset Class Allocation
Australian Equities 31.93%
Property & Infrastructure 8.75%
Cash 6.29%
Fixed Interest 53.03%

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Investment Fees

Investment AmountFees*
Up to $250,000 0.97% p.a.
$250,001 - $500,000 0.85% p.a.
$500,001 - $1,000,000 0.75% p.a.
$1,000,001 - $2,000,000 0.70% p.a.
More than $2,000,000 0.65% p.a.

* The Investment Fees are tiered - for example an Account balance of $500,000 would be charged 0.97% for the first $250,000 and 0.85% for the next $250,000.


Transactional & Operating Costs

  • Brokerage Fee - approximately 0.05% plus GST
  • Settlement Fee - $0.33 per securities transaction
  • Recoverable Expense Fee - $30 - $60 per investor per year

Frequently Asked Questions

What is a Separately Managed Account?
A Separately Managed Account (SMA) is an investment account managed to a model portfolio that is controlled by a portfolio manager. In our case that is our investment team. They decide what stocks, ETF's or funds that go into the model portfolio and at what weighting. The team then manage this daily by adjusting the portfolio as circumstances change to achieve the best risk-adjusted returns for our clients.

The model portfolios use percentage weightings so our clients achieve the same percentage returns across the board no matter the dollar value invested.

Unlike a managed fund an SMA is not a pooled investment, where everyone’s funds is in the same bucket. You have your own account and you are the beneficial owner of the stocks held in that account.

The SMA structure is better than a managed fund for several reasons:

  • Tax effective: You only pay tax on gains & income you received, not on those created by someone else
  • Inflows & outflows: Your investment will not be impacted by the decisions of other model portfolio investors. An example of this is when a pooled investment like a managed fund receives redemption requests at the bottom of the market and is a forced seller at the worst time.
  • Flexibility with income/distributions: Choose to receive the dividends directly into an account of your choice or set up a regular payment or request payments on an adhoc basis.
  • Redemption: Instead of getting cash back, you can receive the shares or ETF's

What is the difference between the Intelligent Investor Model portfolios & the InvestSMART Diversified portfolios?
The Intelligent Investor Model portfolios invest in Australian listed equities from our buy or hold recommendations on Intelligent Investor. They aim to outperform the All Ordinaries Accumulation Index.

The InvestSMART Diversified portfolios use exchange traded funds (ETFs) to provide investors with broad exposure across a range of asset classes and regions to achieve a specific return taking the least amount of risk possible.

 

Can I invest in more than one model?
Yes. You can invest in as many or as few of the portfolios as you like. You can allocate a specific weight to each model and choose to have it rebalanced on a regular basis or have the percentages floating as the models change in value.

 

How long does it take for my cash to be invested? Do you buy the portfolio holdings over time?
The day after your funds have settled your portfolio will be rebalanced. This means all the necessary shares will be purchased to bring the portfolio in line with your chosen model/models.

 

I want to invest gradually (dollar cost average) can I do this?
Yes, but you will need to do it manually. To do this you will need to set up the account with your initial investment and add further funds to it over time.

 

Can I switch the model I am invested in?
Yes. All you need to do is complete a form and tell us how you want to allocate your funds.

 

Do I own the shares?
Yes. Investors have full beneficial ownership of the shares in their portfolio. Those shares are held by a third-party custodian. This arrangement gives investors protection against InvestSMART while maintaining the full benefits of direct share ownership including franking credits and the ability to transfer shares out if you wish to take shares with you if you choose to leave rather than liquidating the entire portfolio.

 

Who is the custodian?
HSBC

 

How can I receive income?
You can receive dividends or make withdrawals for income in a number of ways. You can receive the dividends paid from your holdings directly as they come. You can set up a regular payment or you can request payments as you require. Or you can have a combination of any of the above. Please allow up to four days to change a regular payment plan.

 

If I need to withdraw funds how long will it take?
This depends on cash available in your account. If shares need to be sold down you will need to allow time for settlement (transaction day plus two days). After this the requested amount will be transferred to your nominated bank account. Depending who you bank with you will need to allow a further one to two business days.

 

Can I set up a regular contribution plan?
Yes, when setting up an investment or at any point during your investment you are able to set up a direct debit regular contribution plan for a minimum of $100 per month. This can be altered at any point.

 

When is my regular contribution deducted from my bank account?
On approximately the 15th of each month.

 

How can I add to my portfolio?
You can make a direct debit contribution by completing a form. You can also make a contribution via BPay. If you invest in more than one model portfolio your contribution will be allocated across the model portfolios according to your initial instructions. You can alter this when making the contribution by completing a form.

 

Do I receive franking credits?
Yes. When you submit your tax return you will receive your franking credits.

 

Do I receive a tax statement?
Yes. You will receive a comprehensive tax statement.

 

Why does my portfolio not have exactly the same weightings as the model?
You may notice your portfolio will not hold the stocks to the exact same weight as the model. Holdings may be marginally out for example a stock may be 4.2% rather than 4.6%. This is due to the practicality of buying stock. We cannot buy a fraction of a stock and depending on the dollar size of your portfolio this could lead to it not being 100% on the model. Our minimum transaction size can cause the portfolio to not run exactly to the model as well.

 

What is the minimum transaction size?
For accounts under $75,000 the minimum trade size is 0.20% of your portfolio value. For accounts over $75,000 the minimum trade size is $150.

 

Can I use a margin loan?
Yes. We will work with any margin lender who approves a loan to invest in our investment scheme. Check with your lender.

 

What are the requirements for non Australian Permanent Residents?
Investors must have an Australian residential address, bank account and tax file number. You do not have to be Permanent Residents, you may qualify on a Temporary Work Visa with the above requirements. If you leave Australia, you can keep your investments active as long as you keep your Australian bank account active.

 

What are the fees?
Management fees start at 0.97%pa of the balance of your portfolio and decrease as you invest more. There is also an expense recovery fee of approximately $30 - $60 per year.

 

Do you charge performance fees?
No.

 

Do you charge exit fees or establishment fees?
No

 

Do you charge brokerage?
Yes. There is a fee of $0.33 per transaction plus a fee of 0.05% + GST of the transaction value.

Useful Forms


Anti-Money Laundering (AML) Verification Forms

FormDescriptionDownload
AML Identity Verification Form
Individual and Joint
Use this form if you are an Individual or Joint Investor and your Identity has not yet been verified Download this form
AML Identity Verification Form
Company
Use this form if you are a Company/Corporate Investor Download this form
AML Identity Verification Form
Trust (Individual Trustee)
Use this form if you are a SMSF or Trust Investor with Individual Trustees Download this form
AML Identity Verification Form
Trust (Company Trustee)
Use this form if you are a SMSF or Trust Investor with a Company/Corporate Trustee Download this form
AML Certified Documents Guide This form outlines the requirements of how and who can certify documents Download this form


Contributions via Direct Debit

FormDescriptionDownload
One Off DD Cash Contribution Use this form to make a One Off Direct Debit Contribution Download this form
One Off DD Cash Contribution with Model Selection Use this form to make a One Off Direct Debit Contribution into a particular Model (minimum $5,000) Download this form
Regular Contribution Plan Request Use this form to establish or amend a Regular Contribution Plan (minimum $100 per month) Download this form


Withdrawal Requests

FormDescriptionDownload
Partial Withdrawal Request Use this form to make a Partial Cash Withdrawal from your SMA Download this form
Full Withdrawal Request (Account Closure) Use this form to Close your SMA and make a Full Withdrawal Download this form


Change of Model Allocation

FormDescriptionDownload
Model Allocation Changes Request Use this form to change your Model Allocation Download this form