InvestSMART
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How do the InvestSMART accounts work

InvestSMART has several tools and guides to help you select the right portfolio.

You will notice a common thread throughout the guides, the investment time frame. We recommend investors look at the suggested time frame associated with each portfolio to see if it aligns with their investment goal.

Here is a list of tools and guides to help select the right portfolio:

Calculators

Additionally, we have InvestSMART Bootcamp, which is a comprehensive investment course designed to get you started on the right foot.

Explore Bootcamp here.

The InvestSMART Professionally Managed Account (PMA) is established and offered within the registered managed investment scheme known as the Professionally Managed Accounts.

Each investor has a separate "Account" to which their investments are allocated.

Your Account can be constructed by using a range of available investment strategies that you select. Each investment strategy is referred to as a Model Portfolio, and they can be found by clicking here.

Once you decide which Model Portfolio(s) are best suited to your investment needs and objectives, we will purchase investment to be included in your Account so that it reflects the Model Portfolio, or combination of Model Portfolios, that you have selected.

We provide Professionally Managed Accounts (PMAs), which are portfolios of securities managed professionally and designed with several investment objectives in mind.

These managed portfolios can comprise of Exchange Traded Funds (ETFs) or direct shares. In particular, the InvestSMART Hybrid Income Portfolio invests in Australian listed hybrids and listed debt securities.

What is an Exchange Traded Fund? An Exchange Traded Fund, or ETF, is a managed fund that trades on a stock exchange, such as the ASX.

There are different types of ETFs, each with its own purpose, but most commonly, they will track or follow a particular index.

For example, if you want to follow or track the S&P ASX 200 (the top 200 Australian shares by market capitalisation), you could either buy each individual share (200 shares) or one ETF. The one ETF wraps up the 200 shares into one holding. By holding this one ETF, you get exposure to the movements of the ASX 200, less any fees.

Investing in ETFs is a form of passive investing, and they generally incur cheaper management fees, as fewer investment decisions are required to manage an ETF. They are also quite liquid and traded easily on an exchange.

You can see the holdings of each InvestSMART managed portfolio by navigating to its product page and scrolling to Key Facts > Allocations > Current Holdings.

Yes, your shares and ETFs will be held in your name in a CHESS sponsored broking account.

You are the registered legal and beneficial owner of a portfolio of securities. You can log into the investor website at any time to view the individual securities that make up your Account.

Rebalancing within the PMA is an automatic process whereby Model Portfolios are compared against the investors’ Accounts. The portfolios are monitored on a daily basis, reviewed monthly and reviewed by the Investment Committee formally every quarter.

We aim to keep transactions to a minimum and allow the asset classes to provide the return rather then chopping and changing out of investments.

Your Account will only be rebalanced in the following circumstances:

  • The Portfolio Manager decides to rebalance or switch out a holding;
  • You make an investment in or withdraw cash and/or investments from your Account;
  • You switch Model Portfolios or make other alterations to your Account; or
  • Where your cash holding has moved away from the minimum required due to income received or fees paid.

Investors can see the transactions via the Transactions section when logged in.

Yes, you can hold more than one investment model in the same account. You can hold as many investment models in the same account as you like.

If the model is part of our capped fee range the management fee will apply to your account as a whole. All portfolios titled InvestSMART are part of the capped fee range.

For example if you hold the InvestSMART Balanced Portfolio and the InvestSMART International Portfolio you will only pay a maximum of $451pa on your portfolio and not $451 per model.

If you are an existing investor the only time you would open a brand new account is if you are investing via a different entity. For example you have a personal account but also wish to invest in an InvestSMART portfolio for your SMSF.

As an existing investor you can add funds to your existing account or add a new investment portfolio to your account via the Add Funds feature in My Account. 

Here are some examples of when you would open a new account:

  • You're a new client with no account
  • You want to change or open an account under a different legal entity like a company, trust, or SMSF
  • You want to add your partner as a legal owner
  • You previously closed your account 

The current minimum investment amount for the Professionally Managed Account (PMA) starts at $10,000 per Model Portfolio; unless otherwise stated in the Investment Menu, Key Facts section of the online information page or the Key Details section of the Investor Pack.

Minimum investment amounts are set based on the required level of funds to align our client's portfolios with the Manager's Model portfolio.

If you already have an investment in a Model Portfolio, you do not require another $10,000 to contribute to that same investment.

Example: You have $15,000 in the InvestSMART Conservative Portfolio and $11,000 in the InvestSMART Interest Income Portfolio.

You wish to withdraw $6,000 from the total portfolio.

Each portfolio requires a $10,000 minimum balance, so $5,000 would be withdrawn from the InvestSMART Conservative Portfolio and $1,000 from the InvestSMART Interest Income Portfolio.

Yes, you can withdraw your funds at any time using the Withdrawal Request feature via the online platform.

Your investments are not subject to a minimum investment period, and you are not required to hold them for any fixed term.

You should, however, always consider the suggested timeframe of your chosen portfolio(s) and associated brokerage charges to sell your holdings.

The holdings are very liquid and trade as ETFs on the ASX.

We usually have funds returned to clients in 4-5 business days from the submitted withdrawal request. Withdrawal requests are processed the following day they're received.

Our PMA accounts all operate off model portfolios. For example, the InvestSMART High Growth Portfolio has an ideal weighting to each holding. No matter if someone invests $10K or $1M, they will have the same percentage exposure to each holding. Transactions occur when a client’s account gets out of sync with the model or when the investment manager decides to change the model.

As cash is added to the model, the cash holding percentage will increase while all other asset classes will decrease as a percentage. The change in asset percentages will bring the client’s account out of sync with the model, and transactions will need to take place to realign it. Whether or not we transact will depend on how out of sync the account is compared to the model. For example, adding $1,000 to a $1M account will not move the needle but adding that amount to a $10K account will.

We will use the funds to buy more holdings. Please remember that what you can view on your InvestSMART account is always one day behind, e.g. yesterday’s close and yesterday’s transactions.

Related topics

Yes. Under the Professionally Managed Account (PMA), all investors are the registered and beneficial owners of the investments held in a CHESS sponsored account.

Under the Professionally Managed Account (PMA), all investors are the registered and beneficial owners of the investments held in a CHESS sponsored account.

If anything occurred to see InvestSMART cease operations, your investments would still remain in the name of the investor and/or entity listed as the Professionally Managed Account (PMA) holder.

You would then be able to facilitate the transfer of your investments to another CHESS sponsored account that you have access to and control over to continue to manage your investments.

Your privacy and security are our top priority.

Our bank-level web security keeps your information safe and secure (for the geeks out there, that’s our 256-bit SSL/TLS certificate).

Your investments are held safely in your own name under your own individual Holder Identification Number (HIN).

We never share your personal information with unrelated third parties or advertisers.

We can't tell you what portfolio to choose as we can provide general financial product advice only about the products that InvestSMART offers.

We cannot provide any personal financial advice and you should consider your own financial objectives, financial situation and needs before making an investment decision and submitting an application.

We have a number of tools you can use at InvestSMART including the Portfolio Manager and online calculators.

You will notice a common thread throughout the guides, the investment time-frame. We recommend investors look at the suggested time-frame associated with each portfolio to see if it aligns with their investment goal.

Here is a list of tools and guides to help select the right portfolio:

Additionally we have InvestSMART Bootcamp which is a comprehenisve investment course designed to get you started on the right foot. Click here for further details.

We can't tell you how much to contribute as we can provide general financial product advice only about the products that InvestSMART offers.

We cannot provide any personal financial advice and you should consider your own financial objectives, financial situation and needs before making an investment decision and submitting an application.

We have a number of tools you can use at InvestSMART including the Portfolio Manager and online calculators.

These links will take you to our various calculators: