What are the risks of investing?
All investments carry risk, and the value of your portfolio can go down as well as up. Key risks include:
- Market risk. Portfolio values are influenced by economic conditions, interest rates, inflation, and global events.
- No capital guarantee. There is no guarantee of returns or preservation of capital.
- ETF-specific risks. Each underlying ETF carries its own risk factors, detailed in its Product Disclosure Statement (PDS).
- Suitability risk. The MDA may not remain suitable if your circumstances change. Keep your information up to date and complete your review when due.
- Custody risk. Your assets are held under an omnibus custodial arrangement. This differs from holding assets under an individual HIN in your own name.
Is my money safe? How are my assets held?
Your portfolio assets are held by a custodian on your behalf, separately from Selfwealth’s own assets. They do not form part of Selfwealth’s balance sheet and cannot be used for its own purposes. The custodian is responsible for safeguarding holdings and maintaining records of all client accounts and positions, and you can view the exact composition and value of your portfolio in the app at any time. Cash held within your portfolio is held in a client money account maintained under the client money rules in the Corporations Act.
What is the Statement of Advice (SOA)?
Your SOA is a personalised document setting out which portfolios are suitable for you, the basis for the recommendation, key risks, and your agreed Investment Program. You’ll receive it after completing the suitability assessment.
How do I cancel or close my Managed Investments portfolio?
You can close your Managed Investments portfolio at any time — there's no lock-in period, and no exit, withdrawal or switching fees apply. To start, just let us know through the app or platform that you'd like to withdraw your funds or close your account. Under your Managed Investments Contract, the arrangement can be ended by either you or Selfwealth giving two business days' notice. Once you've told us, we'll sell down the investments held in your portfolio within a reasonable time, and once those trades settle the proceeds are transferred to your Selfwealth account wallet. From there you can reinvest the cash, use it for regular brokerage, or withdraw it to your bank account. It is important to note: because your holdings are sold at the market prices available at the time, the final amount you receive will reflect the value of your investments on the day they are sold; and the management fee continues to accrue up until your portfolio is closed. If you'd like to understand exactly how a portfolio is sold down when it's closed, you can contact us via our email address, support@selfwealth.com.au.