Investments in Australia

[Kenfrapin]

Not sure where to post this so here goes

 

I've been doing some light google searching but could not get much info about how investing works in Australia. Maybe Cash and S&S ISAs dont exist which is fine, but I am certain a lot of people do invest in stocks, unit trusts, funds, investment trusts or something on similar lines

 

Could anyone share some literature or websites I could use to educate myself? I am active investor in the UK self managing 2 S&S ISAs, 2 SIPPs and 2 Share accounts through a few platforms. Keen to know what my options are once we make the move so any help will be appreciated

 

Thanks

KnK

[Andrew from Vista Financial]

Hello KnK

 

Correct S&S and Cash ISAs do not exit here.

 

Yes people do invest here either advised or non advised, all of the above are available to invest into either way ie direct shares, investment trusts, investment bonds as well as exchange traded funds and managed accounts.

 

This is a government website, quite basic but might help: https://www.moneysmart.gov.au/investing

 

Also you could look at the ASX website this is quite good and gives a lot of information: http://www.asx.com.au/ they have also recently introduced a service known as M-Funds which allows managed funds to be purchased similarly to how shares are bought and sold: http://www.asx.com.au/mfund/index.htm, to use this service you would need an ASX Accredited Broker or an online broker account that offers M-Funds.

 

Morningstar offer a research service and also include lots of educational stuff: http://www.morningstar.com.au/Home

 

In terms of vehicles, the above investments can obviously be purchased and owned directly, if looking to purchase in potentially more tax effective vehicles then superannuation may offer this although for full choice of investments a Self-Managed Super Fund (SMSF): http://www.vistafs.com.au/attachments/Educationa_Guide__SelfManaged_Super_Fund_SMSF.pdf is likely to be required, Superannuation Wraps (similar to SIPPS) offered as retail products can offer a wide range of investment choice although in a lot of cases they do require an Adviser to be registered for the investor.

 

There are also Investment Bonds available which can be tax efficient (not as tax efficient as Superannuation) and the choice of investments are usually restricted to managed funds and can be quite limited.

 

Hope this helps top get you started.

 

Regards

 

Andy

[Kenfrapin]

Thanks for the detailed reply Andrew, I will go through the websites this week. I am looking at investing mainly in shares, funds and trusts instead of bonds. I will leave the Super for now as I can tackle that when I get a job or maybe nearer to the time. At the moment I have absolutely no clue on how to invest in Aus so this is good reading material.

 

I want to avoid brokers at all costs and be self sufficient - is there any comparison website (there are loads here) or an investor magazine/website with articles that provides information on investment platforms, fees, pros, cons and everything else?

 

Cheers

KnK

[Kenfrapin]

Thank you all for the replies, must admit I did not get too much time to go through all the links but from the few I have been through, it isnt much clearer. Is there a simple explanation if I put an example below?

 

Lets say I want to invest

1. Monthly $200 into a Unit Trust/Open ended fund like the Fidelity/M&G/BlackRock/Jupiter/Baillie Gifford kinds in UK

2. Monthly $500 into an Investment Trust/close ended fund like the F&C/Bankers Trust/City of London/Aberdeen/Baillie Gifford/Standard Life kinds in the UK

3. General purchase of shares, either randomly or setup a monthly investment plan

 

Not into trackers, commodities, bullion or property for now. As I said I use Hargreaves Lansdowne here, so is there an equivalent there? I understand there isnt an exact concept of ISA there but thats fine, a standard share/investment account for which I need to declare as part of my income tax. It's the options and availability of these I am trying to understand better

 

And this is on top of the supernannuation savings which is generally accessible when I retire, I am looking at a small investment portfolio on the side that I am more than happy to manage online and declare taxes myself

 

Thanks

KnK

[Andrew from Vista Financial]

Hello

 

The funds and platform world is not as vast here as the UK, below is a list of open to new investors platforms/wraps taken from my research software.

 

Some of the hurdles I see for you going down this path:

 

 

• not all allow applications from investors direct as require the platform/wrap is run by an Adviser;
  
• quite a few will require a minimum lump sum investment deposit such as $20,000 or $50,000;
  
• some of them are not full feature wraps/platforms and therefore only offer the ability to invest in managed funds (unit trusts) and retail not wholesale.
  

 

 

The other option to a wrap/platform as mentioned earlier is to open an online broker account, this gives the ability to buy and sell shares as well as exchange traded funds directly, this will help: http://www.canstar.com.au/online-trading/

 

If the online broker account has the M-Funds functionality attached then it will also be possible to buy and sell managed funds (unit trusts) directly, this will help: http://www.asx.com.au/mfund/foundation-members.htm#tabs-218

 

Again though there will be minimum amounts required to invest: http://www.asx.com.au/mfund/fund-information.htm

 

Here you go:

 

 

Acuity Portfolio Service

 

[TABLE]

[TR]

[TD][/TD]

[/TR]

[TR]

[TD]Portfolio Service[/TD]

[/TR]

[/TABLE]

 

Agentia Customised Portfolio Service

 

[TABLE]

[TR]

[TD][/TD]

[/TR]

[TR]

[TD]SMA[/TD]

[/TR]

[/TABLE]

 

AMP Flexible Lifetime Investments

 

[TABLE]

[TR]

[TD][/TD]

[/TR]

[TR]

[TD]Flexible Lifetime Investments[/TD]

[/TR]

[/TABLE]

AMP Generations Investment Portfolio

 

[TABLE]

[TR]

[TD][/TD]

[/TR]

[TR]

[TD]Generations Investment Portfolio[/TD]

[/TR]

[/TABLE]

AMP MyNorth Investment

^†

[TABLE]

[TR]

[TD][/TD]

[/TR]

[TR]

[TD]Core Only

Standard[/TD]

[/TR]

[/TABLE]

AMP Personalised Portfolio

 

[TABLE]

[TR]

[TD][/TD]

[/TR]

[TR]

[TD]Personalised Portfolio[/TD]

[/TR]

[/TABLE]

AMP Summit Money Master

 

[TABLE]

[TR]

[TD][/TD]

[/TR]

[TR]

[TD]Summit Money Master[/TD]

[/TR]

[/TABLE]

 

Asgard Elements Investment

 

[TABLE]

[TR]

[TD][/TD]

[/TR]

[TR]

[TD]Elements Investment[/TD]

[/TR]

[/TABLE]

Asgard eWrap Investment

 

[TABLE]

[TR]

[TD][/TD]

[/TR]

[TR]

[TD]eWrap Investment[/TD]

[/TR]

[/TABLE]

Asgard Infinity eWrap

^†

[TABLE]

[TR]

[TD][/TD]

[/TR]

[TR]

[TD]Core

Full

Select[/TD]

[/TR]

[/TABLE]

Asgard Insights eWrap Investments

 

[TABLE]

[TR]

[TD][/TD]

[/TR]

[TR]

[TD]Insights eWrap Investments[/TD]

[/TR]

[/TABLE]

 

Assemble Wrap

^†

[TABLE]

[TR]

[TD][/TD]

[/TR]

[TR]

[TD]Related Discount

Standard[/TD]

[/TR]

[/TABLE]

 

AssetChoice Investment Wrap

 

[TABLE]

[TR]

[TD][/TD]

[/TR]

[TR]

[TD]Investment Wrap[/TD]

[/TR]

[/TABLE]

 

AssetLink Investment Wrap

 

[TABLE]

[TR]

[TD][/TD]

[/TR]

[TR]

[TD]Investment Wrap[/TD]

[/TR]

[/TABLE]

 

brightday Direct Investing

 

[TABLE]

[TR]

[TD][/TD]

[/TR]

[TR]

[TD]Direct Investing[/TD]

[/TR]

[/TABLE]

 

BT Panorama Investments

 

[TABLE]

[TR]

[TD][/TD]

[/TR]

[TR]

[TD]Panorama Investments[/TD]

[/TR]

[/TABLE]

BT Select Administrator Investments

 

[TABLE]

[TR]

[TD][/TD]

[/TR]

[TR]

[TD]Select Administrator Investments[/TD]

[/TR]

[/TABLE]

BT Select Portfolio Investments

 

[TABLE]

[TR]

[TD][/TD]

[/TR]

[TR]

[TD]Select Portfolio Investments[/TD]

[/TR]

[/TABLE]

BT Wrap

^†

[TABLE]

[TR]

[TD][/TD]

[/TR]

[TR]

[TD]Related Discount

Standard[/TD]

[/TR]

[/TABLE]

 

CAREportfolio Invest

 

[TABLE]

[TR]

[TD][/TD]

[/TR]

[TR]

[TD]Invest[/TD]

[/TR]

[/TABLE]

 

ClearView WealthSolutions Investment

 

[TABLE]

[TR]

[TD][/TD]

[/TR]

[TR]

[TD]WealthSolutions Investment[/TD]

[/TR]

[/TABLE]

 

Colonial First State FirstChoice Investments

 

[TABLE]

[TR]

[TD][/TD]

[/TR]

[TR]

[TD]FirstChoice Investments[/TD]

[/TR]

[/TABLE]

Colonial First State FirstChoice Wholesale Investments

 

[TABLE]

[TR]

[TD][/TD]

[/TR]

[TR]

[TD]FirstChoice Wholesale Investments[/TD]

[/TR]

[/TABLE]

Colonial First State FirstWrap Plus Investments

 

[TABLE]

[TR]

[TD][/TD]

[/TR]

[TR]

[TD]FirstWrap Plus Investments[/TD]

[/TR]

[/TABLE]

 

Compass HUB24 Invest

 

[TABLE]

[TR]

[TD][/TD]

[/TR]

[TR]

[TD]HUB24 Invest[/TD]

[/TR]

[/TABLE]

 

Emerald Investment Wrap

 

[TABLE]

[TR]

[TD][/TD]

[/TR]

[TR]

[TD]Investment Wrap[/TD]

[/TR]

[/TABLE]

 

FC ONE Investment Builder

 

[TABLE]

[TR]

[TD][/TD]

[/TR]

[TR]

[TD]Series 2[/TD]

[/TR]

[/TABLE]

 

FinHQ Wrap Administration Service

 

[TABLE]

[TR]

[TD][/TD]

[/TR]

[TR]

[TD]Wrap Administration Service[/TD]

[/TR]

[/TABLE]

FinHQ Wrap I

 

[TABLE]

[TR]

[TD][/TD]

[/TR]

[TR]

[TD]Wrap I[/TD]

[/TR]

[/TABLE]

FinHQ Wrap Portfolio Service

 

[TABLE]

[TR]

[TD][/TD]

[/TR]

[TR]

[TD]Wrap Portfolio Service[/TD]

[/TR]

[/TABLE]

 

Freedom of Choice Portfolio Service

 

[TABLE]

[TR]

[TD][/TD]

[/TR]

[TR]

[TD]Portfolio Service[/TD]

[/TR]

[/TABLE]

 

HUB24 Invest

 

[TABLE]

[TR]

[TD][/TD]

[/TR]

[TR]

[TD]Invest[/TD]

[/TR]

[/TABLE]

 

Industry Fund Services Portfolio Service

 

[TABLE]

[TR]

[TD][/TD]

[/TR]

[TR]

[TD]Portfolio Service[/TD]

[/TR]

[/TABLE]

 

IOOF Portfolio Essentials

 

[TABLE]

[TR]

[TD][/TD]

[/TR]

[TR]

[TD]Investment Wrap[/TD]

[/TR]

[/TABLE]

IOOF Pursuit Select Investment Service

 

[TABLE]

[TR]

[TD][/TD]

[/TR]

[TR]

[TD]Pursuit Select Investment Service[/TD]

[/TR]

[/TABLE]

 

Lifeplan NextGen Investments

 

[TABLE]

[TR]

[TD][/TD]

[/TR]

[TR]

[TD]NextGen Investments[/TD]

[/TR]

[/TABLE]

 

Macquarie Wrap Investment Accumulator

 

[TABLE]

[TR]

[TD][/TD]

[/TR]

[TR]

[TD]Wrap Investment Accumulator[/TD]

[/TR]

[/TABLE]

Macquarie Wrap Investment Consolidator

 

[TABLE]

[TR]

[TD][/TD]

[/TR]

[TR]

[TD]Wrap Investment Consolidator[/TD]

[/TR]

[/TABLE]

Macquarie Wrap Investment Manager

 

[TABLE]

[TR]

[TD][/TD]

[/TR]

[TR]

[TD]Wrap Investment Manager[/TD]

[/TR]

[/TABLE]

 

Matrix Portfolio Service

 

[TABLE]

[TR]

[TD][/TD]

[/TR]

[TR]

[TD]Portfolio Service[/TD]

[/TR]

[/TABLE]

 

Mentor Portfolio Service

 

[TABLE]

[TR]

[TD][/TD]

[/TR]

[TR]

[TD]Portfolio Service[/TD]

[/TR]

[/TABLE]

 

MLC Masterkey Investment Fundamentals

 

[TABLE]

[TR]

[TD][/TD]

[/TR]

[TR]

[TD]Masterkey Investment Fundamentals[/TD]

[/TR]

[/TABLE]

MLC Navigator Investment Plan

 

[TABLE]

[TR]

[TD][/TD]

[/TR]

[TR]

[TD]Series 2[/TD]

[/TR]

[/TABLE]

MLC Wrap Investments Series 2

 

[TABLE]

[TR]

[TD][/TD]

[/TR]

[TR]

[TD]Wrap Investments Series 2[/TD]

[/TR]

[/TABLE]

 

MX HUB24 Invest

 

[TABLE]

[TR]

[TD][/TD]

[/TR]

[TR]

[TD]Invest[/TD]

[/TR]

[/TABLE]

 

MyState Wealth Management Investment Account

 

[TABLE]

[TR]

[TD][/TD]

[/TR]

[TR]

[TD]Investment Account[/TD]

[/TR]

[/TABLE]

netwealth

netwealth Wealth Accelerator

^†

[TABLE]

[TR]

[TD][/TD]

[/TR]

[TR]

[TD]Plus

Core[/TD]

[/TR]

[/TABLE]

 

OnePath OneAnswer Frontier Investment Portfolio

 

[TABLE]

[TR]

[TD][/TD]

[/TR]

[TR]

[TD]OneAnswer Frontier Investment Portfolio[/TD]

[/TR]

[/TABLE]

 

Perpetual Private Investment Wrap

 

[TABLE]

[TR]

[TD][/TD]

[/TR]

[TR]

[TD]Private Investment Wrap[/TD]

[/TR]

[/TABLE]

Perpetual Select Investment Funds

 

[TABLE]

[TR]

[TD][/TD]

[/TR]

[TR]

[TD]Select Investment Funds[/TD]

[/TR]

[/TABLE]

Perpetual Wealthfocus Investment Advantage

 

[TABLE]

[TR]

[TD][/TD]

[/TR]

[TR]

[TD]Wealthfocus Investment Advantage[/TD]

[/TR]

[/TABLE]

 

Portfolio Administrator Investment Wrap

 

[TABLE]

[TR]

[TD][/TD]

[/TR]

[TR]

[TD]Investment Wrap[/TD]

[/TR]

[/TABLE]

 

The Portfolio Service Investment Essentials

 

[TABLE]

[TR]

[TD][/TD]

[/TR]

[TR]

[TD]Investment Essentials[/TD]

[/TR]

[/TABLE]

The Portfolio Service Personal Investment Plan

^†

[TABLE]

[TR]

[TD][/TD]

[/TR]

[TR]

[TD]Core Menu

Full Menu[/TD]

[/TR]

[/TABLE]

 

PortfolioCare Investment Elements

 

[TABLE]

[TR]

[TD][/TD]

[/TR]

[TR]

[TD]Investment Elements[/TD]

[/TR]

[/TABLE]

PortfolioCare Investment Service

 

[TABLE]

[TR]

[TD][/TD]

[/TR]

[TR]

[TD]Investment Service[/TD]

[/TR]

[/TABLE]

 

Powerwrap Investment Account

 

[TABLE]

[TR]

[TD][/TD]

[/TR]

[TR]

[TD]Investment Account[/TD]

[/TR]

[/TABLE]

 

Praemium SMA

 

[TABLE]

[TR]

[TD][/TD]

[/TR]

[TR]

[TD]SMA[/TD]

[/TR]

[/TABLE]

 

Russell iQ Investment

 

[TABLE]

[TR]

[TD][/TD]

[/TR]

[TR]

[TD]iQ Investment[/TD]

[/TR]

[/TABLE]

 

SimpleWrap Investment Service

 

[TABLE]

[TR]

[TD][/TD]

[/TR]

[TR]

[TD]Investment Service[/TD]

[/TR]

[/TABLE]

© IRESS Ltd

Release 2.16.26

Online

[Kenfrapin]

Thanks for the useful information Andrew, going through it over the weekend

 

Many websites and articles mention you can invest small amounts every month which I assume refers to monthly drip feeding. If that's the case, I can't find information on any website on how to setup a regular investment plan. Most websites seem to treat every investment as a single trade and give you discounts the more you trade, similar to the UK but then this isn't what a regular investment plan is.

 

I am beginning to get the feeling that managing portfolios by myself through regular or adhoc one off trades isn't as simple as it is in the UK!

 

KnK

[Richard01]

Hello KnK

 

Correct S&S and Cash ISAs do not exit here.

 

Yes people do invest here either advised or non advised, all of the above are available to invest into either way ie direct shares, investment trusts, investment bonds as well as exchange traded funds and managed accounts.

 

This is a government website, quite basic but might help: https://www.moneysmart.gov.au/investing

 

Also you could look at the ASX website this is quite good and gives a lot of information: http://www.asx.com.au/ they have also recently introduced a service known as M-Funds which allows managed funds to be purchased similarly to how shares are bought and sold: http://www.asx.com.au/mfund/index.htm, to use this service you would need an ASX Accredited Broker or an online broker account that offers M-Funds.

 

Morningstar offer a research service and also include lots of educational stuff: http://www.morningstar.com.au/Home

 

In terms of vehicles, the above investments can obviously be purchased and owned directly, if looking to purchase in potentially more tax effective vehicles then superannuation may offer this although for full choice of investments a Self-Managed Super Fund (SMSF): http://www.vistafs.com.au/attachments/Educationa_Guide__SelfManaged_Super_Fund_SMSF.pdf is likely to be required, Superannuation Wraps (similar to SIPPS) offered as retail products can offer a wide range of investment choice although in a lot of cases they do require an Adviser to be registered for the investor.

 

There are also Investment Bonds available which can be tax efficient (not as tax efficient as Superannuation) and the choice of investments are usually restricted to managed funds and can be quite limited.

 

Hope this helps top get you started.

 

Regards

 

Andy

 

Hi Andy, amazing free info, you have clearly taken the time to try and help forum members, you would get my business anytime when I need it, thank you!

[Kenfrapin]

The links posted havent been working for a few days but some more digging and lots of reading later, I found a couple of websites that mention 'regular investing'. I am posting the links below to explain better what I have been looking for. These seem to provide only 'their' funds for regular investments.

 

https://www.australianethical.com.au/managed-funds/investing-by-regular-investor-plan/

 

http://www.bt.com.au/help/regular-investment-plan.asp

 

I guess I am looking for a platform where all or most funds from investment houses are available for regular/monthly investments. Surely there must be online platforms that cater for investors who want to do their own decisions, build portfolios and just set up a direct debit every month?

 

On another note, can I purchase UK shares and ITs through an account in Australia? Maybe that could be an option, save up my cash and execute a few big trades every year!

 

Thanks

KnK

[Andrew from Vista Financial]

Hi Andy, amazing free info, you have clearly taken the time to try and help forum members, you would get my business anytime when I need it, thank you!

 

Thanks, nice of you to say

[Thom]

I have to agree with downunder2016, Andy always goes the extra miles for people, he's a very kind chap.

[Marisawright]

The links posted havent been working for a few days but some more digging and lots of reading later, I found a couple of websites that mention 'regular investing'.

 

 

It looks like Andrew posted links to those services via his research software while he was logged in - that's why they won't work for you. However finding the services is as simple as pasting each of those names into Google.

 

However having had a look at Hargreaves Landsdown's website, I'm not sure that's what you're looking for. Hargreaves Landsdown is a broker, and like all brokers, can invest your money anywhere you want. They have just done a great job of enabling their clients to choose their investments online.

 

So, I'd say a broker is what you need - but whether any of the Australian ones have such a sophisticated service is another question.

 

On another note, I would suggest steering clear of Self Managed Super Funds (SMSFs) for now. A SMSF could be perfect for you BUT it would be foolish to set one up until you're 100%, cast-iron sure that you're definitely staying in Australia forever. The reason is that if you subsequently move countries, the SMSF will become subject to a very nasty rate of tax! So wait till you're settled before looking into it.

[Kenfrapin]

It looks like Andrew posted links to those services via his research software while he was logged in - that's why they won't work for you. However finding the services is as simple as pasting each of those names into Google.

 

However having had a look at Hargreaves Landsdown's website, I'm not sure that's what you're looking for. Hargreaves Landsdown is a broker, and like all brokers, can invest your money anywhere you want. They have just done a great job of enabling their clients to choose their investments online.

 

So, I'd say a broker is what you need - but whether any of the Australian ones have such a sophisticated service is another question.

 

On another note, I would suggest steering clear of Self Managed Super Funds (SMSFs) for now. A SMSF could be perfect for you BUT it would be foolish to set one up until you're 100%, cast-iron sure that you're definitely staying in Australia forever. The reason is that if you subsequently move countries, the SMSF will become subject to a very nasty rate of tax! So wait till you're settled before looking into it.

 

 

Thank you and that's what I ended up doing after my post but I wasn't happy with the information available. Somethings are just meant to be discussed with the broker and clarified once I am in the country.

As for your other point on how good HL's website is and services they provide, well I have used some really basic broker sites before but all brokers in the UK have the option of investing a small amount every month with lower trading charges (£1.5 or £2 for Shares and Trusts, no charges for Funds) whether it's part of a Stocks & Shares ISA or a normal trading account. It's very easy to find if a broker has this service as its listed openly on their website but I havent been able to find it that easily on some of the Australian broker websites I checked....

 

It must be just me not looking for the right thing. I have a lot of info thanks to everyone's replies and the rest I will get to know better once I move over

 

Thanks!

KnK

[rachelwc]

Hi,

@Kenfrapin , I wondered did you sort out what you were going to do, I'm pretty much in the same position, except I'm not too bothered about shares and it would more be an ISA type product I'd be after so that my partner and I can save. I'd like to invest in a range of funds probably equities and perhaps property for example like investing in Invesco income (acc) or Woodfords equity income (acc).

 

I have all the links Andrew put on and will read through but thought perhaps easier to ask you and get your experience.

 

 

 

thanks

 

Rachel

 

 

 

 

 

The links posted havent been working for a few days but some more digging and lots of reading later, I found a couple of websites that mention 'regular investing'. I am posting the links below to explain better what I have been looking for. These seem to provide only 'their' funds for regular investments.

 

https://www.australianethical.com.au/managed-funds/investing-by-regular-investor-plan/

 

http://www.bt.com.au/help/regular-investment-plan.asp

 

I guess I am looking for a platform where all or most funds from investment houses are available for regular/monthly investments. Surely there must be online platforms that cater for investors who want to do their own decisions, build portfolios and just set up a direct debit every month?

 

On another note, can I purchase UK shares and ITs through an account in Australia? Maybe that could be an option, save up my cash and execute a few big trades every year!

 

Thanks

KnK