InvestSMART International
Portfolio

Access globally known brands & mega cap companies like Apple, Microsoft and Amazon at a low cost.

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Why invest in the InvestSMART
International Equities Portfolio?

Australia represents less than 2% of the world’s share market value and 50% of our market is made up of 20 companies which are heavily concentrated in the financial and resources sectors. As a result, many Australian investors hold portfolios that are not well-diversified.

The International Portfolio is invested in a blend of our 5 – 15 preferred Exchange Traded Funds (ETFs), where each ETF invests in a different market sector to the others, thereby lowering volatility, minimising overall risk, and increasing the potential for long-term growth.

With InvestSMART’s International Equities Portfolio it has never been easier to own a professionally managed portfolio of international exchange traded funds to diversify your portfolio and access global shares and mega cap companies like Apple, Microsoft, Amazon and Tencent.

Benefits of investing in this portfolio:

•

Professionally managed portfolio of international ETFs

•

Low management fees of 0.55% per year of your investment amount and capped at $550 per year no matter your investment size*

•

Online reporting and end of year tax reporting

Performance^# to 31 Aug 2022

	1 yr	3 yr	5 yr	SI p.a.
Capital Return	-11.32%	5.55%	7.56%	7.56%
Income Return	1.60%	2.06%	2.20%	1.89%
Total Return	-9.72%	7.61%	9.76%	9.45%
Average of 1048 peer funds^	-12.83%	5.44%	8.23%	9.00%
Excess to Peers	3.11%	2.17%	1.53%	0.45%
Note: Past performance is not a reliable indicator of future performance.

Top Holdings

iShares Core S&P 500 ETF	38.19%
iShares Asia 50 ETF	7.80%
Apple Inc	1.96%
Microsoft Corp	1.60%
Amazon.com Inc	0.85%
Alphabet Inc Class A	0.58%
Alphabet Inc Class C	0.54%
Tesla Inc	0.52%
UnitedHealth Group Inc	0.42%
Johnson & Johnson	0.41%

Offer: 3 complimentary coupons to InvestSMART Bootcamp if you invest during the offer period⁺

Offer opens	Monday 19 September 2022
Offer closes	Friday 30 September 2022
Minimum Investment amount	$10,000
Brokerage cost	Greater of $4.40 per trade or 0.044% per trade per security

Capped management fees*

Amount invested	Our capped fees
$0 to $100,000	0.55% p.a.
$100,000+	$550 p.a.

Product Disclosure Statement (PDS)

Fund Fact sheet

Target Market Determination

InvestSMART International Equities Portfolio Country Allocation

Recent articles about the
InvestSMART International Portfolio

The cost of being underweight international shares

Monthly update: 31 August 2022

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Our investment committee

The primary role of our Committee is to oversee the general management and ongoing monitoring of our investment solutions and investment strategies.

Paul Clitheroe, AM

Chairman

Paul Clitheroe, AM AM, B.A. (UNSW), SNF Fin, CFP Chairman
Paul has 37 years of investment experience and is regarded one of Australia's leading "money" experts. From 1993 to 2002, Paul hosted the popular Channel 9 program Money and now currently writes for newspapers across Australia, is a frequent guest expert on Australia's major television networks and radio.

Paul is Chairman of The Australian Government Financial Literacy Board and Money Magazine. He also holds the Chair of Financial Literacy at Macquarie University.
Effie Zahos

Money Commentator & Director

Effie Zahos Money Commentator & Director
Effie is one of Australia's leading personal finance commentators with more than two decades of experience helping Australians make the most of their money. A regular money expert on Channel 9's Today Show and on radio around Australia, Effie is also the author of The Great $20 Adventure and A Real Girl's Guide to Money and Ditch the Debt and Get Rich.

Effie was Editor-at-Large of Canstar for four years and now acts as an ambassador for the comparison site. She was also editor of Money magazine until 2019, having helped establish it in 1999.

Passionate about financial literacy, Effie sits on the board of directors for Ecstra, a not-for-profit organisation committed to building the financial capability of all Australians.

Effie holds a Bachelor of Economics Degree from the University of Queensland. She is the proud mother of two children who are beginning to build on their own financial freedom.
Alan Kohler, AM

Founder-Eureka Report

Alan Kohler, AM Founder-Eureka Report
Alan Kohler is one of Australia's most experienced business commentators. Alan has been a trusted source of investment advice to Australians for many years, and in 2005 he founded Eureka Report - Australia's #1 online investment report. Along with Robert Gottliebsen and Stephen Bartholomeusz, Alan also founded Business Spectator, the popular business news and commentary website now owned by News Corp. He has been a columnist and editor at the Australian Financial Review and The Age. Alan is the regular finance presenter on the ABC News and producer of the popular nightly graph (or two) and writes a regular column for the New Daily.

As well as being Editor-in-Chief of InvestSMART Group, Alan is currently finance presenter on ABC News, Business Editor at Large of The Australian, presenter of the Talking Business channel on Qantas radio and an adjunct professor in the business faculty at Victoria University.
Ron Hodge

Managing Director

Ron Hodge B.Com, B.Econ, MSc. Info Tech, GAICD, SF FIN Managing Director
Ron has worked in financial services for over 25 years, including UBS in Singapore and Bell Commodities in Sydney and founded InvestSMART in 1999. Ron holds a Masters degree in Computer Science, Bachelor Degrees in Commerce and Economics, a Graduate Diploma in Applied Finance and Investments and is a Graduate of the Australian Institute of Company Directors.
Alastair Davidson

Head of Funds Management

Alastair Davidson B Ec (Hons), CA Head of Funds Management
Alastair has held executive positions in the banking and financial services industry for over 27 years in the UK, USA and Australia. Prior to joining InvestSMART in 2014, he held Director positions with Aurora Funds Limited, Challenger and Salomon Smith Barney. Alastair has an Honours degree in Economics from the University of St Andrews and is currently the Treasurer of the Centenary Institute of Medical Research, Chairman of the Investment Committee of the Centenary Institute Endowment Fund and member of the Institute of Chartered Accountants in Scotland.

FAQs

What risk and impact on portfolio returns does currency fluctuations have?

There are some foreign exchange risks to the portfolio as the Australian dollar is freely floating and could appreciate and depreciate versus other currencies over the period you're invested. Be aware these movements can also work in your favour. The overall impact on the international portfolio is low and InvestSMART believe's it is more cost effective for the management of the portfolio not to hedge possible currency risks.

Do I own the shares/ETFs?

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.

Find out more in the Help Centre.

Do I receive dividends and where do they go?

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 My Account or quick links section.

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.

Can I hold more than one portfolio in an account?

Yes, you can hold multiple portfolios within a single account but you can only hold one diversified portfolio per Professionally Managed Account (PMA) with single asset class portfolios alongside it. For example, you could hold the InvestSMART Growth Portfolio with both the InvestSMART International Equities Portfolio and InvestSMART Hybrid Income Portfolio alongside it but you could not hold both the InvestSMART Growth Portfolio and InvestSMART Balanced Portfolio in the single Professionally Managed Account (PMA).

If you wish to invest in multiple diversified portfolios then you will be required to open multiple Professionally Managed Accounts (PMAs).

Diversified Portfolios

InvestSMART Conservative
InvestSMART Balanced
InvestSMART Ethical Growth
InvestSMART Growth
InvestSMART High Growth

Single Asset Class Portfolios

InvestSMART International Equities
InvestSMART Australian Equities
InvestSMART Property & Infrastructure
InvestSMART Hybrid Income
InvestSMART Cash Securities
InvestSMART Interest Income

Intelligent Investor Funds

Intelligent Investor Growth Fund
Intelligent Investor Income Fund
Intelligent Investor Ethical Fund
Intelligent Investor Select Value Fund

Can I set up a regular contribution plan or easily add to my portfolio when I want?

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.

Can I withdraw at any time?

Yes, you can withdraw your funds at any time using the Withdrawal Request feature via the My Account section.

Your investments are not subject to a minimum investment period, and there is no exit fee.

You should, however, always consider the suggested timeframe of your chosen model 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.

If you have multiple model portfolios in your InvestSMART PMA you can choose which investment the funds are drawn from via the Withdrawal Request section.

+ The Complimentary Bootcamp Offer (Offer) is available to new and existing investors in the InvestSMART International Equities Portfolio where the investment is funded between 19 - 30 September 2022. Maximum three free Bootcamp offers per investor during offer period. RRP is $148.50. We will send you a coupon to redeem the Offer within 30 days of funding your investment. The coupon must be used by 31 December 2022. See PDS to determine whether this product is right for you and for further information