Fundlater

Adding & Withdrawing Funds

If you want to add more funds to your InvestSMART PMA, there are several options.

1. I want to add more funds to my existing PMA without changing anything.

  • To add funds to your existing portfolio(s), you can use the BPAY details first emailed to you. 
  • We will invest the funds according to your current portfolio(s) allocation. 
    • You don't need to alert us if you're only adding to an existing portfolio(s). 
    • If you don't have the BPAY details, see below.

2. I want to add funds to a specific portfolio or add a new portfolio.

  • Log on and go to My Account > Add funds. Here you can:
    • Distribute additional investment across your existing model
      • Use this option when you don't want to change anything but need your Bpay details.
    • Distribute additional investment to one or more specific models
      • Use this option to add funds to a particular portfolio or to add a new portfolio.
    • Custom - Distribute additional investment and adjust current model weights
      • Use this option to add, remove, or precisely fund a range of portfolio choices.

For more help, see How can I add funds to a specific portfolio?


3. I want to set up an ongoing contribution.

  • You can create a Regular Contribution Plan here.
  • A minimum of $100 is automatically drawn from your nominated bank account via direct debit in the middle of each calendar month. 

If you'd like more information about Regular Contribution Plans, see I want to turn on/off a regular contribution plan.


Bpay tips:

  • Our Bpay biller code for InvestSMART PMAs is 291807
  • Your Bpay reference number is unique to your PMA.
  • Your Bpay details won't change, so you can always use them to top up your PMA.
  • Bpay payments are made via your banking platform. You should consult your bank if you're unsure how to make a Bpay payment.

How long will it take for the funds to arrive?

See Understanding the funding process and timeframe

What is a Specific Contribution?

A specific contribution is when you want to add funds to either a new portfolio or an individual portfolio inside your account.

How do I do this?

You can add funds to a new portfolio alongside your existing portfolio(s) or choose to add funds to a specific portfolio online.

Log on and go to Portfolio Actions > Add funds.

  • Select 'Add Funds'
  • Enter Contribution Amount by Dollar Figure ($)
  • Provide New Allocation Breakdown by Percentage (%) and then select Next
  • Select Verify to receive a Code via Email or SMS
  • Enter Code to Complete Verification

You'll be shown and emailed your Bpay details so you can make the funding payment.

If you change your mind and haven't sent funds, you can cancel the request. This will allow you to start a new request.

Examples of each contribution type

Adding a new Model Portfolio(s) to your PMA

You have $10,000 in the Conservative Portfolio already and want to add a new  $10,000 investment into a Balanced Portfolio.

Contributing to a specific Model Portfolio(s) within your existing PMA

You have invested $10,000 in the Growth and $10,000 in the High Growth portfolio but only want to add $5,000 to the High Growth.

You can request a partial withdrawal from your Professionally Managed Account (PMA) at any time by completing a Withdrawal Request online.

Please keep in mind that you must maintain the minimum investment amount in each Model Portfolio(s) held within your account. 

You can access the online feature by taking the following steps:

  1. Navigate to Portfolio Actions 

  2. Select Withdrawal Request

  3. Enter Amount ($)

  4. Submit and Verify Request (Email or SMS)

Withdrawals will take 4-5 business days before the funds clear in your nominated bank account. If you have changed bank accounts but failed to update us, you will need to update your details to allow us to return your funds to you.

Please click the link below to access information on steps to take in order to begin this process. 

 

Withdrawals typically take 4-5 business days from the day you verified the withdrawal request.

Because of the delay with data reflected in the My Account section, you may see your cash component in your PMA larger than usual.

This increased cash holding is temporary and shows that the cash has been 'freed up' and will shortly be sent to your nominated bank account.

Why does it take 4-5 business days and not immediately?

We're proud to offer low and capped management fees for our InvestSMART investment products. At the heart of everything we do, our purpose is to make investing rewarding, accessible and affordable.

To keep fees low and capped, we take a process-driven approach. For instance, our trading team can keep costs down by trading once a day during a specific period. This means that withdrawal requests that are verified and submitted are actioned the following business day.

Settlement periods

As with any ASX listed share or ETF, there is a two business days settlement period. The ASX explains this here. This settlement period means your funds won't be available until two days after the transaction takes place.

Your investments are held in a CHESS sponsored brokerage account. This adds an extra layer of protection and can offer more tax advantages as you can transfer holdings to your share trading account and not be forced to sell them. However, this means that getting funds from your brokerage bank account to the InvestSMART bank account adds an extra step. We are in the process of investigating CMA accounts to improve this.

What can I do to help?

Please be aware of the four to five day withdrawal period and factor in potential public holidays that may extend the process. 

When you BPAY your funds before 6 pm on a business day, they will typically arrive in our PMA Trust Account the following business day.

We will email you that we have received your partial or total funds, depending on the amount you have sent.

Once we have received the total funds for investment, we will then send your funds to the share brokerage account opened in your name. This transfer typically takes overnight as well.

When your funds arrive at the share broker the next business day, we will begin to purchase holdings in line with your chosen portfolio.

Once the shares/ETFs have settled (T+2), we will enable the online platform for you to view and administer your holdings. We will send you a welcome email explaining how to access the online platform.

This process takes about 4-5 business days from when we receive your total funds.

Why does it take 4-5 business days and not immediately?

We're proud to offer low and capped management fees for our InvestSMART investment products. At the heart of everything we do, our purpose is to make investing rewarding, accessible and affordable.

To keep fees low and capped, we take a process-driven approach. For instance, our trading team can keep costs down by trading once a day during a specific period. This means that funds received are actioned the following business day.

Settlement periods

As with any ASX listed share or ETF, there is a two business days settlement period. The ASX explains this here. This settlement period means your holdings won't settle until two days after the transaction takes place.

Your investments are held in a CHESS sponsored brokerage account. This adds an extra layer of protection and can offer more tax advantages as you can transfer holdings to your share trading account and not be forced to sell them. However, this means that getting funds from your bank account to the brokerage bank account adds an extra step. We are in the process of investigating CMA accounts to improve this.

Related topics

You can view and manage your InvestSMART PMA online. 

If you are already invested, visit the My Account section of the website and select My Investments to view:

  • Investment Summary
  • Current Holdings
  • Transactions
  • Dividends & Interest
  • Deposits & Withdrawals
  • InvestSMART Fees 
  • Allocation Preferences
  • Investment Preferences

Your portfolio data is updated daily. Please note, you will always see the previous days closing values.

You can switch between Model Portfolios or alter the combination of Model Portfolios on which your portfolio is constructed at any time. Your instruction will generally be acted upon during the next rebalancing date after receiving your request online.

You can submit this request by taking the following steps:

  • Click My Account and My Investments
  • Select Modify Allocations
  • Click Adjust My Allocation
  • Provide New Allocation Breakdown by Percentage (%) and then select Next
  • Select Verification and use preferred option - Email or SMS
  • Complete Verification

If your request requires additional funds to be transferred then the details will be shown in accordance with what you need to contribute along with the BPAY details unique to your investment account.

If you require assistance, please contact our friendly team via the chat function in the bottom right corner.

We are commonly asked by new clients browsing their holdings in the Portfolio Manager why they have physical cash sitting in their investment portfolio. Surely it should be invested in more shares? 

There are four reasons why this may be occurring: 

Cash Component

As referenced in our Product Disclosure Statement, every Professionally Managed Account (PMA) will hold, at the very least, 1% of the total account value in a cash component at all times.

InvestSMART draws upon this cash component to cover management fees and brokerage costs (if required), removing the need to unnecessarily sell down investments to cover the aforementioned expenses, which would be counterproductive to the progress of your investment. 

Portfolio Manager Discretion

At any point in time, the Portfolio Manager of any Model Portfolio has the discretion to adjust the holdings and weightings held, including physical cash. While this is more likely to impact active stock-picking portfolios rather than our capped-fee investment portfolios, it's not unusual to see 5% physical cash held by some models. 

Balanced Portfolio Allocation shown

Contributions or Income 

Over time your investments will pay dividends or distributions with the proceeds deposited into your cash component, and dependent on your income setting, it will either be accumulated and paid to your nominated bank account or held for reinvestment at the next rebalance. 

Contributions are also held similarly. They will be initially deposited into the cash component until there are enough available funds to trigger a rebalance of your holdings. 

The myth of "Full Investment"

Lastly, there is a common-sense reason why there might be a little more physical cash in your account. We aren't able to necessarily deploy every cent we'd like to due to the fluctuations in the price of underlying holdings on any one day, i.e. if we want to purchase $500 of ABC to rebalance your portfolio but only have $100 available, then we will have to hold fast for the time being. 

Remember:

This is a Professionally Managed Account (PMA), meaning that we manage this for you. Any trading, readjusting, rebalancing is done automatically by InvestSMART.

If you have any further questions or want clarification on the above topics, then please feel free to email us at invest@investsmart.com.au 

We sometimes get asked, "Why does portfolio performance differ from the model performance?"

Your account is designed to track the InvestSMART model portfolios you have chosen to invest in. We operate model portfolios with specific percentages assigned to the holdings and invest in the same holdings for your account to mirror the model. When the model holdings change so to will your account holdings.

Here are some common reasons why your investment return may differ from the model portfolio you are tracking:

Income sweep: If you have the Income Sweep turned on you are having the dividends paid out to you, therefore removing that cash from your portfolio. This may make it seem like your returns are lower than they are.

Your inception date: Our published model performance figures are based on month end values. For example, model performance may be +5% from 30 November to 31 December. If you established your portfolio on the 5th November and attempted to compare performance, your return may look quite different.

Adjusting/changing investment models: If you adjust your model weights during the performance reporting period, your returns may differ to our published performance. By adjusting models during the period, it becomes more difficult to obtain a like for like comparison against model performance returns.

Adding or withdrawing funds: Adding or withdrawing funds will see InvestSMART needing to buy or sell securities/shares in your account during the month. This will see you purchase or sell securities/shares at a price that may differ from the end of month price.

Size of portfolio balance: Our models operate off percentages. The larger the size of the portfolio the easier it is to match those percentages. Some accounts holdings may vary to model security weights as the high dollar value of a security (E.g., $100-600 depending on the ETF) means we can’t buy as many as is required to get close to the model weight. These residual amounts are therefore held as cash which has the effect of dampening returns when securities are going up. Of course, where securities fall, this has the effect of improving returns relative to model.

     

Actual Weight

 

 

Price per unit

Model Weight

$1m Portfolio

$100K Portfolio

$10K Portfolio

 

 

AAA

$50.07

14.00%

14.00%

13.97%

13.52%

IAF

$109.35

22.50%

22.49%

22.42%

21.87%

IFRA

$21.77

2.75%

2.75%

2.74%

2.61%

IOZ

$30.32

21.00%

21.00%

20.98%

20.92%

VAP

$93.00

2.75%

2.74%

2.70%

1.86%

VBND

$47.43

12.00%

12.00%

12.00%

11.86%

VGS

$105.04

24.00%

23.99%

23.95%

23.11%

CASH

$1.00

1.00%

1.02%

1.24%

4.25%

   

100.00%

100.00%

100.00%

100.00%

Brokerage: The investment models do not factor in brokerage. If you add funds, withdraw funds, or change investment model’s transactions occur and so do brokerage costs.