Managed Discretionary Accounts, or MDAs, are a more direct model of managing a clients' superannuation investments as compared to traditional superannuation Funds.
To access Stockspot's MDA service within Super Simplifier you must have signed up to the MDA Service that is provided by Stockspot as both the MDA Provider and as your MDA Adviser.
Under the MDA Service, we as the MDA Provider will manage your investments in accordance with this Investment Program that was also set out in the Statement of Advice (SOA) provided to you by us as your MDA Adviser. We will select financial products (in this case, ETFs) to meet the asset allocation set out in the Stockspot Model Portfolio that best reflects your Investment Program. We will also use our discretion to make trades according to this Investment Program without requiring your prior approval for each trade.
Your investments will be held in your Personal Super Account with Super Simplifier, and we will issue instructions to the investment administrator appointed by the Trustee as to when to buy and sell ETFs in accordance with the Stockspot Model Portfolio.
The SOA will also contain a recommendation as to whether the MDA Contract is suitable and whether this Investment Program is suitable and appropriate taking into consideration your current relevant personal circumstances and the basis for the recommendation. It will also include details of any fees for our advisory and MDA services, as well as any fees and costs associated with Super Simplifier.
Opening a Personal Super Account
Once you have received and signed the Statement of Advice (SOA) which explains Stockspot's advice to you, you will be given an application to open a Personal Super Account with Super Simplifier. Some of your personal information will already be pre-populated into that application. You will have access to member information for Super Simplifier via your Stockspot Portal. You can also make requests and instructions for account changes (eg. nominated beneficiaries, change contact details) via your Stockspot Portal.
In order to provide you with our MDA Services you will need to enter into an MDA Contract. The MDA Contract includes an Investment Program which will also be included in the Statement of Advice that is prepared in accordance with the requirements in Division 3 of Part 7.7 of the Corporations Act.
The Statement of Advice and Investment Program includes the following information:
Once the MDA Contract is in place, Stockspot can act on your behalf to implement and manage your Investment Program without requiring ongoing authorisation from you each time a change is made. Funds contributed to your MDA will be invested in accordance with the Investment Program included in your Statement of Advice and MDA Contract. Stockspot will act within the agreed terms of this MDA Contract and the Investment Program at all times unless otherwise agreed with you as recorded in a new Statement of Advice or Record of Advice (as applicable).
You can terminate the MDA Contract at any time by sending an email from your registered email to enquiries@stockspot.com.au. This would involve a full rollover of your super to another fund. The process can take up to a week and there are no exit fees.
Minimum investment
To open an MDA a minimum investment of $2,000 AUD is required. The initial investment should be deposited into the Client Cash Account for which we will provide details at the time you open your account.
Smaller portfolios under $10,000
For portfolios under $10,000, Stockspot will phase-in the investments gradually in order to effectively manage risk versus return for smaller portfolios. During the phase in period, the portfolios are well diversified with exposure to growth and defensive investments.
We recommend that you aim to build your portfolio to $10,000 as soon as possible (ideally within 12 months) to ensure that you enjoy the full benefits of diversification.
| Service provider | Description |
|---|---|
| MDA Provider | Stockspot Pty Ltd (AFSL 536082) is the MDA Provider and is responsible for managing your account pursuant to this Investment Program. Stockspot is Australia's first and largest automated investment adviser See www.stockspot.com.au for more information about Stockspot |
| MDA Adviser | Stockspot Pty Ltd (AFSL 536082) is your Adviser. Stockspot is responsible for:
|
| Trustee and third party service providers |
The Trustee of Super Simplifier is Equity Trustees Superannuation Limited (ABN 50 055 641 757, AFSL 229757, RSE Licence No. L0001458). The Trustee is legally responsible for Super Simplifier, including holding all assets of Super Simplifier, and oversight of service providers.
A full list of the service providers appointed by the Trustee in the operation of Super Simplifier is set out in section 1 'About Super Simplifier' in the Super Simplifier PDS. |
Benefits of the MDA
There are a number of benefits associated with investing through this MDA Service.
Access to professional investment management: You gain access to professional investment management expertise through a range of Stockspot Model Portfolios.
A tax-efficient structure: Because Super Simplifier is not a pooled fund structure, management of your tax position can be more efficient when compared to other forms of investment through unitised trusts. Your tax management can be more efficient because:
We recommend you speak to a tax professional to understand any potential tax implications
Stockspot Portal access
The Stockspot portal provides detailed reporting on your super contributions investment portfolio, including each of the ETFs you hold, their performance, and the overall portfolio performance. Many super funds provide performance reporting on a less frequent basis, such as quarterly and annually. Furthermore, the Stockspot portal allows you to see each of your underlying investments, offering a level of transparency that is uncommon with pooled super funds.
Risks of the MDA
It is important to understand that, even with a sensible diversified investment strategy and appropriate time horizon, investing always involves some risk.
The financial performance of the Stockspot Model Portfolios that form your investment portfolio within Super Simplifier may be influenced by a variety of general domestic and international economic factors and business conditions, which are outside the control of Stockspot. These include (but are not limited to) changes in the inflation rate, commodities prices, exchange rates, interest rates, government fiscal, monetary and regulatory policy, natural disasters, health pandemics and acts of terrorism.
Stockspot may employ certain strategies that depend upon the reliability and accuracy of the analytical investment processes. To the extent such investment processes (or the assumptions underlying them) do not prove to be correct, your Stockspot Model Portfolio may not perform as anticipated, which could result in losses.
Your superannuation will be invested into an investment portfolio that consists of ETFs only. While each portfolio aims to provide investors with exposure to a range of markets and sectors, you should consider if there is enough diversification overall in asset types to meet your personal circumstances and preferences.
No guarantee can be given in respect of the future earnings of the MDA Service or Super Simplifier or the capital appreciation of your investments within Super Simplifier. The price of investments that Stockspot has purchased on behalf of you can fall as well as rise over time. There are risks associated with the underlying investments within the Stockspot Model Portfolios, which are outlined in the relevant PDS for each ETF. You should carefully consider the risks of each ETF before deciding to invest in Super Simplifier.
The operating performance of the MDA Service or Super Simplifier may also be impacted by industry risk factors. These factors are outside the control of Stockspot. Such factors include (but are not limited to) increased compliance costs and variations in legislation and government policies.
You should also consider the risks of investing in Super Simplifier and in relation to your superannuation generally. Please carefully read the Super Simplifier PDS for further information on such risks.
Advice warning
The advice provided by Stockspot may not be suitable for you if you have provided limited or inaccurate information relating to your relevant personal circumstances and it may cease to be suitable if your relevant personal circumstances change. It is therefore important that you notify us of any changes so our advice is accurate. You can notify us of any changes to your personal contact information in the "Your profile" section of your dashboard. To update key contact information such as mobile or email address or to discuss changes in your risk profile or other personal circumstances, please contact our client care team on (02) 8091 8090.
Before acting on the SOA you should consider the appropriateness of the advice, having regard to your objectives, financial situation and needs. If there is anything you do not understand, you should contact Stockspot at https://www.stockspot.com.au/contact-us/
Stockspot provides limited advice as set out in the SOA. If you require advice on your insurance, switching superannuation, contributing to your superannuation or any form of holistic financial advice not covered in the SOA, please contact an alternate adviser.
| Stockspot MDA – Personal Super Account3 | ||
|---|---|---|
| Type of fee or cost | Amount | How and when paid |
| Ongoing annual fees and costs1 | ||
|
Management fees and costs3
The fees and costs for managing your investment. |
0.18% MDA Service Fee of 0.18% of the net asset value of your Portfolio2,3
PLUS ETF Management Fee of between 0.24% to 0.47% p.a. of the net asset value of your Portfolio (depending on which Stockspot Model Portfolio you choose). |
The MDA Service Fee is calculated based on your average balance each month. This fee is deducted from your Cash Account each month and paid by the Trustee to Stockspot.
The ETF Management Fee is an indirect cost that is included in the price of the ETF and is not charged as an explicit fee to your Cash Account. |
|
Performance fees
Amounts deducted from your investment in relation to the performance of the portfolio. |
Nil
There are no performance fees charged by Stockspot in relation to you gaining access to ETFs through Super Simplifier and at this time, there are no performance fees charged by the ETFs you choose that form your Stockspot Model Portfolio. |
No fee is charged |
|
Transaction costs
The costs incurred when buying or selling assets. |
0.01% to 0.03%
The amount of your transaction costs will vary depending on the Stockspot Model Portfolio you choose and include the transaction costs of the underlying ETFs in your Portfolio. Transaction costs disclosed in this MDA Contract, represent the amount of transaction costs that each ETF incurs as a weighted average of the relevant Stockspot Model Portfolio during the previous financial year. For further information for the actual transaction cost of a specific ETF, please see the disclosure document for that ETF. |
Transaction costs are incurred at the time when assets in your Portfolio are purchased and sold and include where assets are purchased and sold by the underlying ETFs in your Portfolio. |
| Member activity related fees and costs (fees for services or when your money moves in or out of the MDA Service) 4 | ||
|
Establishment fee
The fee to open your investment |
Nil | No fee is charged |
|
Contribution fee
The fee on each amount contributed to your investment |
Nil | No contribution fee is charged by us |
|
Buy-sell spread
An amount deducted from your investment representing costs incurred in transactions |
Nil | No buy-sell spread is charged by us. |
|
Withdrawal fee
The fee on each amount you take out of your investment |
Nil | No withdrawal fee is charged by us |
|
Exit fee
The fee to close your investment |
Nil | No exit fee is charged by us |
|
Switching fee
The fee for changing investment options |
Nil | No switching fee is charged |
1 All fees in the table above are shown inclusive of GST and net of any reduced input tax credits (RITC).
2 In very limited circumstances, MDA Service fees may be negotiated with large wholesale clients only at Stockspot's discretion.
3 The MDA Service Fee includes an amount payable to Stockspot as your MDA Adviser. Please see below under Management fees and costs for further details.
4 We do not charge establishment fees, contribution fees, buy-sell spread, withdrawal fee, exit fee or switching fees. However, you may incur such costs in relation to Super Simplifier. Please see below under section Super Simplifier fees for more details.
This table gives an example of how the ongoing annual fees and costs for the Turquoise Portfolio (Balanced) investment option for this MDA Service can affect your investment over a 1-year period. You can use this table to compare the cost of this MDA Service with other MDA Services.
| EXAMPLE: Turquoise Portfolio (Balanced) 1 | BALANCE OF $50,000 WITH A CONTRIBUTION OF $5,000 DURING YEAR | |
|---|---|---|
| Contribution fees | Nil | For every additional $5,000 you put in, you will be charged $0 |
| PLUS Management fees and costs2, 3 |
0.44% comprising of:
|
And for every $50,000 you have in the Turquoise Portfolio (Balanced), you will be charged or have deducted from your investment $$220 each year. |
| PLUS Performance fees | Nil | And, you will be charged or have deducted from your investment $0 in performance fees each year |
| PLUS Transaction costs | 0.01% | And, you will be charged or have deducted from your investment $5 in transaction costs |
| EQUALS Cost of Turquoise Portfolio (Balanced) |
If you had an investment of $50,000 at the beginning of the year and you put in an additional $5,000 during that year, you would be charged fees and costs of $225 for the Turquoise Portfolio (Balanced).
What it costs you will depend on the Stockspot Model Portfolio you choose. |
|
1 All fees in the table above are shown inclusive of GST and net of any reduced input tax credits (RITC).
2 In very limited circumstances, MDA Service fees may be negotiated with large wholesale clients only at Stockspot's discretion. The MDA Service Fee includes an amount payable to Stockspot as your MDA Adviser. Please see below under Management fees and costs for further details.
The Corporations Act requires that when calculating management costs in this table, we must assume that the value of your investment remains at $50,000 and the value of your portfolio does not fluctuate. Please be aware that management costs incurred will depend on the market value of your investment and the timing of your contributions or withdrawals during any 12-month period. The example assumes you invest in the Turquoise Portfolio, no minimum monthly fees apply, you incur no additional service fees (please see the section 'Additional Services Fees' for details) and that fees are not individually negotiated with us. In very limited circumstances, MDA Service fees may be negotiated with large wholesale clients only at Stockspot's discretion.
If you would like to calculate the effect of fees and costs on your investment you can visit the ASIC website (www.moneysmart.gov.au) and use their managed investment fee calculator.
The cost of the product gives a summary calculation about how ongoing annual fees and costs can affect your investment over a 1-year period for all Stockspot Model Portfolio options available for the MDA Service. It is calculated in the manner shown in the Example of annual fees and costs.
The cost of the product assumes a balance of $50,000 at the beginning of the year with a contribution of $5,000 during the year.
You should use this figure to help compare this MDA Service product with other MDA services.
| Stockspot Model Portfolio option | Cost of portfolio |
|---|---|
| Amethyst | $215 |
| Sapphire | $215 |
| Turquoise | $225 |
| Emerald | $230 |
| Topaz | $235 |
| Topaz - Income | $275 |
| Topaz - Inflation | $325 |
| Sustainable Amethyst | $255 |
| Sustainable Sapphire | $275 |
| Sustainable Turquoise | $295 |
| Sustainable Emerald | $315 |
| Sustainable Topaz | $330 |
Management fees and costs
Management fees and costs are fees and costs that relate to the administration and operation of the MDA Service include the following fees:
MDA Service Fee
An MDA Service Fee is payable to Stockspot for providing the MDA Service to you and includes:
The MDA Service Fee is calculated monthly in arrears based on the average balance of your Portfolio each month. This fee is deducted from your Cash Account each month and paid by the Trustee to Stockspot.
The MDA Service Fee includes all ongoing advice fees payable to Stockspot as your MDA Adviser.
ETF Management Fee
Indirect costs form part of management fees and costs and include fees and expenses from any investment which qualifies as an interposed vehicle (e.g. the cost of any underlying ETF that forms part of your Stockspot Model Portfolio).
ETF Management Fees are an indirect cost to you, charged by each ETF issuer and included in the traded unit price for the relevant ETF. On a portfolio-weighted basis, the ETF Management Fees are typically 0.24% to 0.28% per year for standard Stockspot Model Portfolios. ETF management fees for the Stockspot Sustainable portfolios range from 0.32% to 0.47% per year. ETF Management Fees for the Stockspot Topaz Income and Stockspot Topaz Inflation Portfolios range from 0.35% to 0.44% per year. ETF management fees for the Stockspot Themes range from 0.04% to 0.74% per year.
For further information on the ETF Management Fee for each Stockspot Model Portfolio, please refer to section 'Portfolios managed by Stockspot' in this MDA Contract.
Performance Fees
There are no performance fees charged by Stockspot in relation to you gaining access to ETFs through Super Simplifier and at this time, there are no performance fees charged by any ETFs that form part of a Stockspot Model Portfolio. We will update you if any ETFs that do form part of a Stockspot Model Portfolio charges performance fees.
Transaction Costs
Transaction costs include brokerage, settlement costs, buy/sell spreads on investments, clearing and stamp duty costs. When you invest in a Stockspot ETF Portfolio on Super Simplifier, the Trustee will buy (and sell) investments and incur these costs. There are no transaction costs charged by us in relation to you gaining access to ETFs through Super Simplifier. Nor do we charge any buy/sell spreads in connection with your contributions and withdrawals from the MDA Service.
The underlying ETFs in your Stockspot Model Portfolio will however also incur transaction costs. These are separate to the ETF Management Fee and the Transaction costs disclosed in this MDA Contract, represent the amount of transaction costs that each ETF incurs as a weighted average of the relevant Stockspot Model Portfolio during the previous financial year. The ETFs in your Stockspot Model Portfolio are unlikely to charge buy/sell spreads. For further information of the actual transaction cost of a specific individual ETF or for information on any buy/sell spreads that may be charged by the ETF, please see the disclosure document for that ETF.
IMPORTANT: Super Simplifier Fees
An investment in Stockspot ETF Portfolios through Super Simplifier will incur the fees and costs of Super Simplifier. These will include any Administration fees and costs, and cash management fees, as well as brokerage and insurance fees depending on the nature of the activity or insurance chosen by you and any other arrangements with Super Simplifier you may have.
All Super Simplifier fees will be deducted from your Personal Super Account by the Trustee unless otherwise indicated. You will receive via your Stockspot Portal, a report on the fees you are charged. For more information on what fees and costs you may be charged for Super Simplifier, you should read carefully Section 6 'Fees and Costs' of the Super Simplifier PDS. We have also set out these fees and costs in your SOA.
Additional Services Fees
If you ask us to do something special for your portfolio you may be charged a fee. An example may be to prepare for you any bespoke reporting that is otherwise not available as standard. These additional service fees vary depending on what you ask us to do and may be deducted from your Personal Super Account or charged to you directly.
Government charges and taxation
Government taxes such as GST may be applied to your Personal Super Account as appropriate. In addition to the fees and costs described in this section, standard government fees, duties and bank charges may also apply such as stamp duties. Some of these charges may include additional GST and will apply to your investments and withdrawals as appropriate.
Can Fees be different for different investors?
We generally don't negotiate fees however in very limited circumstances we may negotiate fees for very large wholesale arrangements only. Such terms are at our discretion.
Can Fees change?
Yes, all fees can change. Reasons might include changing economic conditions and changes in regulation. However, we will give you 30 days' written notice of any increase to fees where practicable. This notice may be given to you via your Stockspot Portal.
Staff remuneration and benefits
Stockspot staff are remunerated based on salary (including bonuses) and may be shareholders of Stockspot so participate in profits earned in relation to the Stockspot business.