This means that we operate under an Australian Financial Services License, which is provided by and regulated by ASIC.
Our role is to manage your investments, and each month we deduct our Investment Management Fee from your Cash Management Account.
In the unlikely event that Balance Impact ceased to exist, you would have the option of managing the investments yourself, or finding another financial planner to manage them.
1. Login and create an account.
2. Answer a few questions about your investment goals, risk profile and the good things you care about.
3. We’ll recommend a socially responsible investment portfolio.
4. Fill in your personal details using our online form.
5. We’ll set-up your Cash Management Account and Brokerage Account.
6. Deposit funds into your Cash Management Account.
7. We’ll set-up your investment portfolio.
8. Login any time to check your investment performance.
If you decide to manage the investment yourself you should also be monitoring the financial performance of the investment, keeping an eye on new investments that come onto the market, tracking the social performance of the investments, preparing the information required for your tax return and rebalancing your portfolio. These tasks are time consuming and not everyone has the expertise to complete them successfully.
With our fees starting from $14 a month it makes financial sense to use our services and benefit from our professional investment expertise.
1. An initial call with Balance Impact to discuss your investment goals, both social and financial.
2. A face-to-face meeting to start the design of your bespoke portfolio.
3. A draft Statement of Advice setting out our proposed investment portfolio.
4. A face-to-face meeting to discuss the draft Statement of Advice and make any changes.
5. A face-to-face meeting to discuss the final Statement of Advice, and sign any documents required to establish the portfolio.
Our face-to-face meetings will be conducted in person for our Sydney clients, and via Skype for those located outside of Sydney.
|Balance Size||$15,000 to $35,000||$35,001 to $100,000||$100,001|
|Fee||$14 per month ($168 p.a)||$25 per month ($300 p.a)||$55 per month ($660 p.a)|
|Investment portfolio tailored to your risk profile||✔||✔||✔|
|Compliance of each investment with our ethical screening criteria||✔||✔||✔|
|Annual social impact reports||✔||✔||✔|
|Quarterly financial performance reports||✔||✔||✔|
|Professional portfolio monitoring and management||✔||✔||✔|
|Online access to your investment account||✔||✔||✔|
|A real person to talk to, available by phone or online||✔||✔||✔|
|Annual taxation data for your tax return||✔||✔||✔|
|Monthly overview of responsible investments opportunities*||✖||✔||✔|
|Annual face-to-face meetings to review your portfolio||✖||✖||✔|
• Product fees: We recommend investments in a number of products, each of which charge fees. These fees are paid to the product provider, not to Balance Impact. For our Model Portfolios, these fees range from 0.31% to 0.51% per annum. You can use our online calculator to see what your fee would be each month, including the product fees. For the purposes of the calculation we assume that you invest in our ‘balanced’ option.
• Brokerage fees: When you invest with us, you own each investment directly. In making the investment, the brokerage cost is the greater of $19.95 or 0.12%. This is paid directly to the broker, not to Balance Impact.
All of the investments will meet our ethical screening criteria. Read more about our responsible investments.
To establish your investment portfolio, you will first deposit the amount that you would like to be invested in your Cash Management Account. After you deposit the funds, Balance Impact will place the trade orders using your brokerage account to establish the investment portfolio. Each investment will be owned in your own name, or the entity via which you invest.
At no point will your cash be held in Balance Impact’s account, and none of your investments will be held in Balance Impact’s name.
• You decide to invest your $10,000 portfolio in 30% bonds, and 70% equity.
• One year later, the share market has risen 20%, and the bond market has risen 5%.
• At the end of year one you now have $8,400 in shares and $3,150 in bonds. This means that your portfolio is now invested 73% in shares and 27% in bonds.
• To rebalance your portfolio, you need to sell the extra 3% in shares and reinvest them in bonds.
We rebalance our portfolios at least annually. Research has shown that portfolio rebalancing increases returns, and decreases risk, making it a worthwhile exercise.
When changing between portfolios, brokerage costs may be incurred. You will be advised of the amount of brokerage cost before the change is made.
You cannot invest in a bespoke portfolio allocation of your choosing, unless you have created a bespoke portfolio.
The cost of this service starts from $2,200 upfront, and $1,320 per annum for portfolio reporting and monitoring.