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Professionally Managed Accounts
Under our Professionally Managed Accounts, you will gain the following benefits:
1. Professionally managed investment portfolio: An investment portfolio managed by InvestSMART's investment team.
2. You own the securities: The investor holds legal ownership and the underlying securities are registered under your name.
3. Reporting: Complete end of year Accounting and tax reporting is provided on your investment.
4. Transparency: Investors are provided full visibility of all stocks held in your portfolio.
5. Tailored & Unique Portfolio: Under a PMA, we offer multiple model portfolios to choose from so that you can create a customised and diversified portfolio to suit your individual needs. Our model portfolios will differ in the levels of risk and return, and each model offers a different investment emphasis (such as Australian & international equities, property securities, international ETFs, etc).
6. Account Management: The paperwork and administration is taken care of, reducing the administrative burden on investors.
7. Tax effective: You only pay tax on gains & income you received.
8. 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.
9. Flexibility with income/distributions: Choose to receive the dividends directly into an account of your choice or set up a regular payment or request drawdowns on an adhoc basis.
The Intelligent Investor Model portfolios invest in Australian listed equities managed by our Australian Equities Portfolio Manager. The aim is to outperform the ASX 200 Accumulation Index and follows a value investing approach of finding undervalued stocks in the market.
The InvestSMART Portfolios use Exchange Traded Funds (ETFs) to provide investors with broad exposure across a range of asset classes and regions, which can help diversify your portfolio and spread your overall risk. Professionally managed by our Portfolio Manager, our Active Asset Allocation Portfolio objective is to provide investors returns in line with the benchmark minus our fees by investing in blend of our preferred Exchange Traded Funds (ETFs).
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.
We know even the smallest difference in fees can result in substantial differences to your return. Through ongoing technology advances, our goal is to continue to reduce the cost of investing.
On launching our Professionally Managed Account (PMA) service, we have reduced our investment fees and updated our investment fee structure*.
To better diversify your portfolio or get you on the path to building your first investment portfolio, we offer the choice of the following investment strategies - Active Asset Allocation & Active Stock Selection range.
Investment Fees - Active Asset Allocation range
Professionally managed by our Portfolio Manager, our Active Asset Allocation Portfolio objective is to provide investors returns in line with the benchmark minus our fees by investing in blend of our preferred Exchange Traded Funds (ETFs).
| Investment Amount | Fees* |
|---|---|
| $10,000 - $18,000 | $99 p.a. capped |
| $18,001 - $81,999 | 0.55% p.a. |
| From $82,000 | $451 p.a. capped |
Brokerage: The greater of $5.50 per trade or 0.11% of the value of the trade
Indirect Cost: Between 0.18 - 0.31% p.a. depending on model portfolio selected (this is a cost associated with ETF providers and not marked up by InvestSMART).
Our capped fee structure is across our InvestSMART Portfolios (no matter if you invest in one or several models and applies to the following Models:
Investment Fees - Active Stock Selection Portfolios
Professionally managed by our Portfolio Managers, our Active Stock Selection Portfolios follow a value investing approach which involves searching for undervalued stocks that offer strong long-term prospects. These portfolios offers investors exposure to a portfolio of 10 - 35 ASX-listed securities with the objective to outperform their respective benchmark.
| Investment Amount | Fees^ |
|---|---|
| Up to $250,000 | 0.77% p.a. |
| $250,001 - $500,000 | 0.65% p.a. |
| $500,001 - $1,000,000 | 0.55% p.a. |
| $1,000,001 - $2,000,000 | 0.50% p.a. |
| More than $2,000,000 | 0.45% p.a. |
^Fees start at 0.77% p.a. of the balance of your portfolio and decrease as you invest more into that portfolio. The Investment Fees featured here are the minimum costs and include both the Investment Fee and Admin Fee. 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.
Each model portfolio may vary in fees. Please read the product disclosure documents for full details before investing in our products.
*InvestSMART's Professionally Managed Account service was launched on the 1 November 2018.
If you invest in a Professionally Managed Account (PMA), there are no performance fees charged. The InvestSMART Australian Small Companies Fund does have a performance fee attached to the product, which is conditional on the fund's performance surpassing a couple of benchmarks. More details are provided in the fund's PDS.
Your shares will be held in your name in a CHESS sponsored broking account, therefore, in the event where we could not manage your shares anymore, you would continue to hold your shares in your name.
When considering an investment, core to your decision-making process should be your investment objective, time horizon and risk tolerance.
To help you determine which Portfolio might be suitable for you, join InvestSMART’s Chief Market Strategist, Evan Lucas and Head of Portfolio Services, Mitchell Sneddon as they discuss our four core diversified portfolios (Diversified Income, Balanced, Core Growth and High Growth), what they mean and in which circumstances you would use them.
Once the funds have cleared in the InvestSMART Applications Account they will be transferred over night into your investment account. Once settled in the investment account our team will buy the holdings in the model/s you have selected.
Yes you can. You are able to set up a regular contribution plan or add funds at any point for your InvestSMART PMA.
When setting up your account you can elect to have a monthly direct debit from your bank account into your InvestSMART PMA. The minimum monthly direct debit amount is $100.
If you are already invested click on Investment Preferences to set up or amend the regular contribution plan in the Quick Links section or the My Account section when you are logged in.
To add funds whenever you wish click on the Add Funds link in the Quick Links section or in My Account.
Yes, you can easily switch between investment models and yes you can hold more than one investment model in the same account.
To switch between investment models simply click on Modify Allocations via the Quick Links section or within My Account. There are no administration fees for changing between models. The only costs associated would be the brokerage charges for selling and buying the new holdings.
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. 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.
Yes. Investors have legal ownership of the shares and they are held on a HIN (holder identification number) registered with CHESS in the investors name.
Should you wish to withdraw your investment with InvestSMART you can transfer your shares out to a brokerage account of your choice.
Yes, your InvestSMART PMA will receive dividends from the holdings. InvestSMART does not participate in dividend reinvestment plans. As the dividends from your holdings are paid they will go into the cash component of your account. You will see these via the Dividends & Interest tab and Deposits & Withdrawals tab within the InvestSMART Funds section of the Portfolio Manager.
Clients can elect to have the dividends paid out in a monthly income sweep. At the end of each month all dividends and interest received by your account will be tallied and paid out to the bank account you nominated in your application form.
If you do not have an income sweep in place the dividends will remain as cash and invested when your portfolios cash percentage exceeds the investment models.
