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You can choose to hold an Intelligent Investor fund directly through your share broker or inside an InvestSMART PMA.
| Inside PMA | Held through share broker |
Time needed to buy | 4-5 business days to reflect in your PMA | Shows immediately when purchased |
Time needed to sell | You can process a withdrawal. Takes 1-2 business days to sell on market. | Can sell immediately at market price |
Fees | You only pay the 0.97% p.a. inside the Intelligent Investor ETF | 0.97% p.a. |
Dividends | Dividends are paid into the cash component of the PMA. You can have income paid out monthly. The default is to have the dividends reinvested into the whole of the PMA. This means that your II ETF dividends may be invested into one of the InvestSMART portfolios if you hold them. | You can use dividend reinvestment or have them paid out. |
Tax Statements | You generally have to wait until the PMA tax statements are ready. | You received these from the share registry as soon as they’re ready. |
Adding to the II ETFs | You can add funds to the PMA and have them go to the II ETF but it may not be allocated depending on the amount. See ‘Cash allocation’. | You can add amounts as low as $500 through your share broker. |
If I hold an Intelligent Investor fund in my PMA how is that charged?
You can choose to hold both InvestSMART portfolios and Intelligent Investor Funds within your portfolio, side by side.
The InvestSMART portfolios are part of the capped fee range.
The Intelligent Investor Funds are not part of the capped fee range, and management fees apply at 0.97% p.a. This is the only applicable fee for the Intelligent Investor Funds.
Example:
You have $115,000 in your InvestSMART PMA.
InvestSMART Balanced Portfolio - $100,000
Intelligent Investor Australian Equity Growth Fund (Managed Fund) (ASX:IIGF) - $15,000
The fees are capped in the InvestSMART Balanced Portfolio and would be $550 p.a.
The 0.97% applies to the Intelligent Investor Australian Equity Growth Fund and would be $145.50 p.a.