FAQs

Simply choose the portfolio that best suits your risk profile and time horizon and complete the short account opening process. You will then be asked to transfer funds which we will draw upon to build your portfolio.

Yes, you can. We understand that banks often impose a daily transfer limit and also some people may want to transfer their initial deposit from multiple bank accounts. There is no need to transfer your funds in a single transaction.

Our minimum investment is only $5000.

Yes, it is certainly possible to invest in more than one model portfolio but you will need to open up a new account for each portfolio. For example, if you wanted to invest some funds under your personal name in both a High Income portfolio and Growth portfolio then you would need to open an account for each. To invest in more than one Model Portfolio please follow this process :

Step 1 - Open your first account as per normal
Step 2 - Login to your Investor Portal
Step 3 - Click Account Maintenance on the left side of the screen
Step 4 - Click Create New Account
Step 5 - Click Start Application

Yes, it is certainly possible to invest in both your personal name and your SMSF but you will need to open a new account for each portfolio. This also applies if you wanted to open an account for each of your children and you want to choose either the same or a different Model Portfolio per Account. To do so please follow this process :

Step 1 - Open your first account as per normal
Step 2 - Login to your Investor Portal
Step 3 - Click Account Maintenance on the left side of the screen
Step 4 - Click Create New Account
Step 5 - Click Start Application

Yes, it is possible for a parent or relative to open an account on behalf of a child or grandchild who is aged under 18. When opening your account please follow these steps :

1. in Section 3 “Choose your Account Type” please select Individual Account
2. in the Display Name field immediately below please enter the minors name.

Please note that the Investment Portfolio will be legally held in your name even though it is designated to your child or grandchild. Minors (those under the age of 18) cannot legally own investments in their own name.

No. At this stage we do not offer that option but we are planning on doing so in the future.

Yes, you can make additional contributions to your investment portfolio at any time by depositing funds via BPAY or Direct Credit to our administrator and custodian. If you wish to do so please log in to the Investor Portal and follow these steps:

1. Click Account Maintenance on the left side of the screen
2. Click Contributions and enter the amount you wish to invest and the payment method.

Please note that the minimum additional contribution amount is $1000.

We ask for your Tax File Number (TFN) so that we don’t have to deduct withholding tax from your investment returns.

Providing your TFN is not compulsory, it just means that without it we have to deduct tax, which you may be able to claim back at a later day. You also have the option to provide a TFN exemption code if one applies to you.

Once your funds have cleared (usually 2-3 days) we will invest in the portfolio of your choice. We will email you when we first receive your funds and also when we invest them.

No you don’t, but you do need to be an Australian resident for tax purposes.

Collins House Online is currently available for the following accounts:

• Individuals
• Company accounts
• Trust Account with a corporate trustee
• Trust Account with an individual(s) as trustee
• SMSF Account with a corporate trustee
• SMSF Account with an individual(s) as trustee

A Product Disclosure Statement is a document that contains information about the service including its key features and benefits. It also provides details about the risks, costs and fees of the service as well as how it works and your rights and obligations as an investor.

We offer the choice of 6 different portfolios.

1. High Income
2. Moderately Defensive
3. Balanced
4. Growth
5. High Growth
6. Socially Responsible Balanced

Each portfolio is constructed from a list of ETFs and Managed Funds diversified across different asset classes.

Asset classes include:

• Australian shares
• Global equities
• Australian fixed interest
• International fixed interest
• Australian listed property
• Emerging markets
• Infrastructure
• Commodities
• Cash

An Exchange Traded Fund (ETF) is a type of investment fund listed on the stock exchange and traded like shares. Each ETF holds a collection of securities, the composition of which mirrors a particular index, such as the S&P/ASX 200 index of Australian shares.

ETFs allow individual investors to gain all the diversification benefits of owning a large number of securities while only having to hold one investment thereby lowering the investment amount needed to properly diversify. Since each ETF is designed to track a particular index, ETF fees also tend to be lower than for equivalent funds trying to beat indices

We use a range of ETF’s and Managed Funds to represent the various asset classes that make up our portfolios. All of our Funds are chosen based on a number of factors including; fund size, liquidity, costs, tracking error and performance. We also aim to diversify our portfolios across different ETF issuers. Please click here for details on the ETF’s and Funds currently used in our model portfolios

Yes. When opening your account, you can choose what percentage of the income (from 0% to 100%) you wish to receive, and the balance will be reinvested back into the portfolio. Alternatively, you can elect to receive a fixed amount quarterly which may consist of income and capital, which will be transferred into your nominated bank account every quarter.

No. You can withdraw your money at any time without penalty. Settlement usually takes 7 days although in certain circumstances we reserve the right to extend this period (reasons in which we might have to do so this are set out in the PDS). The majority of the funds we invest in are listed on the ASX which settle on a T+2 basis although a portion is likely to be unlisted which will generally take longer to settle.

Yes. You will be entitled to any franking credits that are attached to distributions. This will be detailed in the annual tax statement that we issue you.

When we purchase your portfolio we leave a small amount (approx. 2%) in a separate cash account in order to pay your fees. This cash account is part of your investment account and accrues interest daily.

No, Collins House Online does not offer the capability for customisation of the portfolio.

The majority of our chosen Funds pay quarterly distributions although in some cases it is half-yearly or monthly.

Our portfolios are approved and maintained by the Collins House Investment Committee. The Investment Committee has over 60 years of combined experience in financial markets and portfolio construction. Click here for further information.

Please click here to calculate your monthly fee. Your fees are based on the daily value of your investment account, calculated monthly in arrears and deducted directly from your cash account, which is a part of your investment account. For a more detailed breakdown of how your fee is calculated please see the PDS.

No, all gains are retained by the investor.

No, there is no brokerage charged to the investor on either the purchase of the initial investments, any subsequent portfolio adjustments or when you come to sell your portfolio. Collins House Online covers all brokerage costs.

No, there are no Entry/Exit Fees or lock-in contracts.

Every investor has access to their own investor portal so you can log in at any time and see at a glance:

• The overall status of your investment account
• The composition of your portfolio
• How your portfolio is performing
• Updates from the Collins House Investment Committee

We also provide investors with access to the Collins House Online app.

Yes, if you feel your circumstances have changed or perhaps you weren’t in the right portfolio to start with, you can change portfolios at any time via the client portal.

You can withdraw funds at any time via the following steps :
1) Login to your client portal on your pc or tablet
2) Click on Account Maintenance
3) Click on Withdrawals.
The entire process normally takes between 7 and 10 days before the funds are back into your nominated bank account.

No, there are no penalties or costs involved no matter how long you have invested your funds. Brokerage fees are also never charged.

You can transfer additional funds at any time by visiting your online portal and clicking on the Account Maintenance tab.

The High Income Portfolio aims to provide regular income through investing in a diversified and actively managed portfolio of quality fixed interest investments.

We aim to provide an income return that is greater than bank term deposits by generally favouring fixed interest investments that deliver higher returns at an acceptable level of risk. However, with the higher rate of expected return comes higher expected risk, including the risk of capital loss.

Fixed interest investments, such as term deposits and government bonds offer investors a regular income for a specified term with the expectation that the principal will be repaid at the end of the term (maturity date).

Term Deposits are a deposit with a financial institution which has an agreed term (generally 1 month to 5 years) and interest rate (generally higher than an at call account but lower than other fixed interest investments). There are restrictions on how they can be terminated prior to the term. The chief benefit of a term deposit is that capital is guaranteed by the Australian Government, up to a limit of $250,000.

Bonds are securities issued by Governments or Corporations when they borrow money from investors.
Corporate Bonds generally pay a higher rate of return than Government Bonds and usually pay higher interest than term deposits to reflect the perceived higher credit risk.
Global bonds are usually fully hedged to the Australian dollar to remove any currency risk.

Residential Backed Mortgage Securities (RMBS) are another form of fixed interest investment and are made up of packages of home loans that are sold on by lenders to investors.
RMBS generally pay higher returns than Government Bonds and in some cases Corporate Bonds due to increased credit risk.

Fixed interest investments can be sold relatively quickly, although it’s important to note their capital value may rise and fall due to market conditions and assessed credit risk.

• Quarterly income distributions; we are targeting a distribution of over 3% p.a, (net of all fees) and paid quarterly – please note that this rate of return is not guaranteed and is determined by market conditions.

• Actively managed; we utilise a range of specialist Fixed Interest Managers to take advantage of expertise in both local and global fixed Interest markets and monitor the underlying portfolios and manager performance so as to minimise risk of any capital loss.

• Diversification; our portfolio is diversified in two crucial ways: first, it offers diversification across Government and Corporate Bonds as well as RMBS and other liquid fixed interest opportunities both in Australia and Internationally. Second, we select different Fixed Interest Managers to take advantage of their expertise across different markets.

• Easy access; it’s a quick and simple process to open an account and you can start with as little as $5,000.

• Regular updates; Our Investment Committee provides you with regular and timely updates on the performance of the portfolio

Whilst the High Income Portfolio aims to minimise risk of any capital loss by diversifying both across the various types of fixed interest investments and within those categories, an investment in the portfolio is not capital guaranteed. There is a risk of capital loss and/or of the portfolio not being able to pay the expected income distribution.

Investors and retirees seeking a higher rate of income return than is currently being offered by bank deposits and who fully understand and accept that this investment is higher risk than a term deposit. In particular, unlike an investment in a term deposit, an investment in our High Income portfolio is not capital guaranteed.

The minimum investment is $5,000, with the ability to add further amounts of $1,000 or more.

Income distributions (which consist of interest and realised capital gains) are paid quarterly around the following dates: January 30, April 30, July 30 and October 30.

Yes. When opening your account, you can choose what percentage of the income (from 0% to 100%) you wish to receive, and the balance will be reinvested back into the portfolio. Alternatively, you can elect to receive a fixed amount quarterly which may consist of income and capital, which will be transferred into your nominated bank account every quarter.

No. You can withdraw your money at any time without penalty. Settlement usually takes 7 days although in certain circumstances we reserve the right to extend this period (reasons in which we might have to do so this are set out in the PDS). The majority of the funds we invest in are listed on the ASX which settle on a T+2 basis although a portion is likely to be unlisted which will generally take longer to settle.

We charge a Management Fee of 0.75% p.a. which covers our investment management decisions as well as the platform administration costs. This fee is deducted directly from your account on a monthly basis.

There is also an indirect cost based on the underlying charges of the holdings we invest in, such as ETFs and managed funds. These charges are automatically deducted from those funds and do not come out of your account.

For an estimate of your monthly charges please click here.

The Collins House Investment Committee manages the portfolio. The Investment Committee has over 60 years experience in financial markets and portfolio construction. Click here for further information.

The selection of the individual fixed interest securities is outsourced to external investment managers who have significant experience and expertise in managing fixed interest securities.

A new investor entering the High Income Portfolio during the quarter will have their accrued income paid out to them based on the time they have been invested in the portfolio. As an example, if you enter the portfolio 20 days before we pay income out for that quarter, then you will only be entitled to any interest, dividend or distributions paid by the underlying funds or ETFs for the quarter, in that 20 day period in which you were invested.

For questions regarding the administration of your account, please contact our friendly team on 1800 861 016 or support@collinshouseonline.com

Yes. If you wish to speak with one of our portfolio managers you can contact us on (03) 80807838 or chois@collinshouse.com