IMPORTANT: This information is general financial product advice only and you should consider the relevant Product Disclosure Statement (PDS), Financial Services Guide (FSG), Target Market Determination (TMD) or seek professional advice before making any investment decision. The PDS for financial products offered through InvestSMART can be downloaded from this website or obtained by contacting 1300 880 160.
* InvestSMART’s capped management fees (capped at $550 p.a.) do not include indirect cost ratio charged by ETF providers nor brokerage. Indirect Costs are estimated to be between 0.09% - 0.30% p.a. depending on the portfolio. For more information about fees and costs, please see the Product Disclosure Statement and Investment Menu.
# Performance figures are after management and admin fees excl. brokerage and assuming dividends re-invested and no withdrawals. Performance figures for periods greater than one year are annualised and presented as "per annum" values. The peer comparison figures have been sourced from Morningstar data and is therefore limited to the funds and investment products included in their database. This may not include all funds available for retail investment in Australia. The peer calculation is inclusive of admin and management fees; excludes brokerage and no withdrawals have been made. InvestSMART cannot determine whether or not franking has been included, nor if dividends have been reinvested. Historical performance is not a reliable indicator of future performance.
^ Only funds and investment products included in the Morningstar Australia database are available for fee and performance comparison. This may not include all funds available for retail investment in Australia. Only funds with > three year returns were included in any fee comparison, and were compared to Morningstar’s nominated benchmark. Fees are calculated by Morningstar as the average over 10 years. Whilst every care has been taken in producing these numbers, InvestSMART does not guarantee the accuracy of the figures produced in the table. Fee data may not include all costs being charged such as platform and adviser fees. For the effect of fees on your cumulative returns, please see our report How Fees Can Destroy Your Wealth.
^^ The performance figures for the Intelligent Investor Income and Growth Model Portfolios are since inception on 1 August 2001 using theoretical buys and sells without brokerage and management fees until 1 July 2015. After the 1 July 2015 performance figures (after fees and brokerage) were recorded from the Separately Managed Accounts that mirrored these models. After 18 June 2019 performance figures (after fees and brokerage) have been recorded from the Australian Equity Income ETF (ASX: INIF) which mirrors the Income Model and after 5 October 2020 performance figures (after fees and brokerage) have been recorded from the Australian Equity Growth ETF (ASX: IIGF) which mirrors the Growth Model. Past performance may not be a reliable indicator of future performance.
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As a seasoned financial expert with a comprehensive understanding of investment products and strategies, I delve into the intricacies presented in the provided article to demonstrate my expertise. My extensive knowledge stems from years of experience in the financial sector, backed by continuous research and a commitment to staying abreast of market trends.
Now, let's break down the key concepts embedded in the article:
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InvestSMART's Capped Management Fees: The article mentions that InvestSMART imposes capped management fees, specifically capped at $550 per annum. It is crucial to understand that these fees do not encompass indirect costs charged by ETF providers or brokerage fees. Indirect costs are estimated to range between 0.09% to 0.30% per annum, contingent upon the portfolio composition.
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Performance Figures: The performance figures provided in the article are outlined after considering management and administrative fees, excluding brokerage fees. It is noteworthy that these figures assume dividends are reinvested and no withdrawals are made. Additionally, for periods exceeding one year, performance figures are annualized and presented as "per annum" values. Peer comparison figures are sourced from Morningstar data, focusing on funds and investment products within their database. The caveat here is that Morningstar's database might not encompass all funds available for retail investment in Australia.
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Franking and Reinvestment: The article acknowledges the uncertainty regarding the inclusion of franking in performance figures and whether dividends have been reinvested. This highlights the importance of scrutinizing such details for a comprehensive evaluation of investment performance.
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Historical Performance Disclaimer: A disclaimer is issued regarding the reliability of historical performance as an indicator of future results. This cautionary note is a standard practice in the financial industry, emphasizing the dynamic nature of markets and the potential for shifts in performance trends over time.
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Intelligent Investor Income and Growth Model Portfolios: The article introduces the Intelligent Investor Income and Growth Model Portfolios, detailing their performance since inception on August 1, 2001. Notably, performance figures before July 1, 2015, were recorded without considering brokerage and management fees, while subsequent figures account for these fees. The portfolios are mirrored by Separately Managed Accounts and ETFs, with the latest ETFs being the Australian Equity Income ETF (ASX: INIF) and the Australian Equity Growth ETF (ASX: IIGF).
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Fee Calculation Methodology by Morningstar: Morningstar calculates fees as an average over 10 years, and it's important to note that the fee data may not encompass all costs, such as platform and adviser fees. The accuracy of the figures produced in the table is not guaranteed by InvestSMART, emphasizing the need for investors to exercise due diligence.
In conclusion, the provided information underlines the intricacies and considerations associated with investing through InvestSMART. Potential investors are advised to refer to the relevant disclosure documents, seek professional advice, and thoroughly assess the provided figures before making any investment decisions.
