Dynamic Model Portfolios

Investment Management Team

CommSec Investment Management is a specialist provider of Australian equity managed accounts and model portfolios. Concentrating on the intermediary market the team’s key strengths include portfolio construction, portfolio management and research services.

The team uses primary research and a long-term approach when investing in high-quality businesses. The analysis places particular emphasis on competitive advantage, free cash flow and financial position to invest in businesses at fair prices.

  • For more information about the Investment Management Team, Managed Accounts or Model Portfolios contact the Investment Management Team between 8.30am to 5.30pm Monday to Friday.
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    1800 252 531

Features & Benefits

CommSec Adviser Services now offers Managed Accounts, Bespoke and Model Portfolios depending on your client’s objectives and risk profile.

Scalability & Efficiency

Scalability and Efficiency

Manage the direct investment component of your business efficiently, compliantly and cost-effectively.
Trade Execution Service

Trade Execution Service

The CommSec Investment Management Team takes away the uncertainties surrounding trade executions.
SMSF Capability

SMSF Capability

Managed Accounts and Model Portfolios are designed with the growing numbers of SMSF's in mind.
Insourcing of direct investment expertise

Insourcing of Direct Investment Expertise

Leverage the expertise of our Investment Manger’s and their access to research and information tools such as Bloomberg and Morningstar.
SOA and ROA

Consistent Investment Approach

CommSec Investment Management Team’s approach to investing in each company is kept constant across all our portfolios and services.
Consistent approach

Direct access to the Investment Team

Using CommSec Adviser Services for your investment management, you will have direct access to the Investment Management Team to answer any question you many have.

Investment Philosophy & Process

The CommSec Investment Management Team takes a long-term view when investing, utilising primary research to identify high-quality companies at fair prices. The conservative investment style aims to protect shareholder capital, minimise turnover, and deliver returns over the long-term. The long-term approach is critical as the stock market will ultimately recognise the value in companies which provide sustained earnings and dividend growth.

The team identifies, researches and values businesses using company, competitor and industry reports. Where appropriate, CommSec Investment Management Analysts meet with company management to ensure a fully informed view supports the investment decision.

When assessing the quality of a company, the team places particular emphasis on:

  • Competitive Advantage: Price premium advantages, cost advantages and capital efficiency allow a company to grow earnings, protect margins and generate attractive returns over the long-term.
  • Free Cash Flow: Highlights a company’s ability to finance growth, service debt obligations, fund capital expenditure and sustain dividends.
  • Financial Position: Conservative approach to debt and other obligations provide the company flexibility to execute their growth strategy and avoid financial stress. The team avoids companies with excessive financial leverage or what they view as real refinancing risk.

Analysts use a number of valuation tools to estimate a fair price for a company. These include discounted cash flow analysis, earnings multiple comparisons, and other return ratios. While valuation is not the primary driver of investment decisions, CommSec Investment Management aims to invest in companies when their market price is not at a substantial premium to the teams assessed valuation.

Portfolios are constructed incorporating top-down and bottom-up analysis, providing diversified exposure to a high-quality portfolio of Australian equities. Active company and sector tilts are carefully made within a proprietary risk framework to maximise return stability. The Investment Management Team is overseen by the Investment Committee who ensure adherence to the investment mandate.

Managed Accounts

The Separately Managed Accounts from CommSec Investment Management are an efficient and cost-effective way for you and your clients to access professionally managed investment portfolios.

The CommSec Investment Management Team are responsible for managing each Managed Account in line with the investment mandate, reducing your risk and administration, and freeing you up to spend more time with your clients. The Investment Management Team has the discretion to make investment decisions for the managed accounts without your client’s authority which also results in greater efficiency for you, as there is no requirement for ongoing ROAs.

The benefits for your clients include full transparency and direct ownership of the underlying securities including their tax outcome.

BALANCED GROWTH INCOME
Balanced Growth Income
Core Satellite + Tactical Core Satellite + Tactical Core + Income + Tactical
Large Cap ASX200 Large and Mid-Cap ASX200 Large Cap ASX200
15-25 stocks 15-25 stocks 15-25 stocks
Moderate Turnover Moderate Turnover Moderate Turnover
High Yield + Franking Moderate Yield + EPS Growth High Yield + High Franking
Objective-Based Objective-Based Objective-Based
Benchmark ASX200 Benchmark ASX200 Benchmark ASX200
Monthly Performance Reports Monthly Performance Reports Monthly Performance Reports

The investment philosophy and process of constructing the portfolio is consistent between Managed Accounts and Model Portfolios.

Managed Accounts Disclaimer
Managed Accounts will be available through leading Australian platforms shortly.

Model Portfolios

CommSec Investment Management offers a number of pre-defined Model Portfolios to suit your clients’ investment objectives and risk profiles. Their low-cost portfolios are constructed with Australian Equities incorporating top-down and bottom-up analysis.

By utilising CommSec Investment Management’s Model Portfolios, you can ‘insource’ your direct investment research, portfolio construction, management and performance reporting.

You can follow portfolio changes retrospectively with the CommSec Investment Team executing trades on you and your client’s behalf.

BALANCED GROWTH INCOME ETF
Balanced Growth Income Warrant
Core Satellite + Tactical Core Satellite + Tactical Core + Income + Tactical Strategic + Tactical Asset Allocation
Large Cap ASX200 Large and Mid-Cap ASX200 Large Cap ASX200 Australian Listed ETFs
15-25 stocks 15-25 stocks 15-25 stocks Global Asset Allocation
Moderate Turnover Moderate Turnover Moderate Turnover Low Turnover
High Yield + Franking Moderate Yield + EPS Growth High Yield + High Franking Risk Adjusted Yield + Alpha
Objective-Based Objective-Based Objective-Based Strategic and Objective-Based
Benchmark ASX200 Benchmark ASX200 Benchmark ASX200 Absolute Return
Monthly Performance Reports Monthly Performance Reports Monthly Performance Reports Quarterly Reports and Commentary

The investment philosophy and process of constructing the portfolio is consistent between Managed Accounts and Model Portfolios.

Bespoke Portfolio

CommSec Investment Management offers a bespoke portfolio solution to suit your clients’ particular circumstances. The Investment Management Team creates the portfolio with a long-term investment outlook and limits stock turnover.

You and your client can have as much, or as little, involvement in the construction as you desire. Once implemented, the team will assist you with the ongoing portfolio maintenance to keep abreast of major events such as recommendation changes, corporate actions and major announcements.

BESPOKE
Bespoke
Flexible and Tailored
Large Cap ASX100+
Equities, ETF's or Hybrid Securities
Low Turnover
Tailored to client needs
Strategic and Objective-Based
Total Return
Quarterly Reports and Commentary

Forms

Request a Portfolio

1. Dynamic Model and Bespoke Portfolio Form

Use this form to select from a pre-determined suite of model portfolio solutions, or alternatively request a bespoke portfolio construction based on your client’s risk profile, investment needs and objectives.
Updated: 13/03/2017

One Off Trade Service

2. One Off Trade Form

Complete this form to sell issuer sponsored share holdings on behalf of a client without the need to open an account. Your client must have an existing account with CommSec Adviser Services, CommSec or the Commonwealth Bank. Please ensure clients are also made aware of our Best Execution Policy.
Updated 01/07/2016

3. Small Estates Indemnity Form

Complete this form to accompany a deceased estates sale, where probate has not been granted and the value of the sale/s is worth less than $15,000
Updated 12/06/2014

Resources

Online Demonstration

Learn how our experienced advisers can work in partnership with your business to create wholesale equity and ETF investment solutions for your clients.
Updated: 13/01/2016

Guide to Dynamic Model Portfolios

View our Guide to Dynamic Model Portfolios and learn how the service can help you strengthen your offering and add more value to your clients.
Updated: 13/03/2017

Sample Model Portfolio Report

View a sample report for the Balanced Model Portfolio to learn more about the service and the quality of the models.
Updated: 14/06/2014

Manged Accounts FAQs

What is the investment universe for the CommSec Managed Accounts?

The portfolios consist of ASX 200 companies.

How do I set up a Managed Account?

We can help direct you to the right request form for each investment platform you intend to use. Please contact our team on 1800 252 351 or email us at commsecadviserservices@cba.com.au.

Who makes the investment decisions?

The Investment Committee with the CommSec Investment Management Team is responsible for all investment decisions. Our experienced team continuously monitors each Managed Account, makes changes as necessary, utilising primary research from the CIM Team with the support of external research.

How are corporate actions handled?

The CommSec Investment Management Team makes all the decisions regarding the corporate actions, with decisions based on the benefits to the Managed Accounts.

Can I make additional investments into a Managed Account?

Your clients can make additional investments into the Managed Account from funds held in their nominated bank account.

Can I make withdrawals from a Managed Account?

Your clients can withdraw from the Managed Account using the appropriate platform’s process.

Is there a Cash component in the Managed Account?

Yes, there will always be a Cash component reflected in the Managed Account. The Cash component will range between 2% and 10% depending on the portfolio mandate. Holding Cash is to ensure corporate actions, stock replacements and portfolio rebalances can occur without the need to draw down additional funds.

How are franking credits treated?

Your clients will be accredited franking credits in the same way they receive them if they hold listed securities.

Is the performance of the Managed Account tracked?

The Investment Management Team monitors the performance of each Managed Account and provides regular performance reports that are under the Managed Account Resources tab.

What is the Investment Management Team's investment track-record?

All performance data is available on the CommSec Investment Management Team Managed Account reports. Please contact the team to gain access to these reports.


Model Porfolios FAQs

What are Model Portfolios?

Model Portfolios are indicative direct investment portfolios, tactically managed in line with a pre-defined investment strategy and mandate. Weightings within the portfolio are dynamic in nature, meaning that they evolve with the market and the underlying direction of each investment.

Are Model Portfolios available to Self-Managed Super Funds?

The CommSec Investment Management Team specialises in direct investment portfolio construction, with over 70% of all portfolios used within an SMSF structure. Model Portfolios cater for all clients and risk profiles within different stages of their investment lifecycle.

How are trades for Model Portfolios conducted?

You can either place trades online or ‘insource’ trades to us, where you benefit with our state of the art trading technology at no additional cost.

Can the Model Portfolios be managed online?

Yes, you can manage the portfolios online. You will receive the same access to view trade history and run reports, as you would with a regular trading account.

How is the performance of the Model Portfolios tracked?

CommSec Investment Management uses professional portfolio management tools to track portfolio characteristics and performance. The team issues monthly reports tracking performance, attribution statistics as well as underlying market, stock and portfolio commentary.

How often are changes made to the Model Portfolios?

The CommSec Investment Management Team aims to keep portfolio turnover to a minimum. There is a predefined turnover guide for each portfolio. However, there is no regular or predestined stock turnover or rebalancing cycle. This approach gives us the flexibility to ensure stock and sector allocations are appropriate, in-line with the portfolio parameters and underlying market conditions.

What is the investment philosophy and process?

For a copy of the comprehensive investment guide, please contact the CommSec Investment Management Team on 1800 252 351 (8:30 am-5:30 pm Monday to Friday).

How will I be notified of changes to the Model Portfolios?

You will receive daily market updates and stock or asset-specific market-sensitive announcements as they happen. Notifications will occur immediately if the Investment Team changes a stock or asset within the portfolio. These notifications are additional to the monthly performance reports.

What happens if I cannot make the suggested changes to the Model Portfolios immediately?

Model Portfolios, while being prescriptive in nature, are primarily designed to provide you with a guide, or process to manage your clients’ direct investments.

If your client falls outside of the Model Portfolio for a short period, it means your client could experience a tracking error when compared to our reported performance. However, given the nature of stock markets, it is important to note that any tracking error will not always work for your client. By providing SOA, advice, various trading tools and transaction calculators, we can help you ensure changes to portfolios are made promptly, either in bulk or at a client-by-client level.

Is there a Cash component within the Model Portfolios?

Yes, there will always be a Cash component reflected in the Model Portfolios. The Cash component will range between 2% and 10% depending on the portfolio mandate. Holding Cash is to ensure corporate actions, stock replacements and portfolio rebalances can occur without the need to draw down additional funds.

Linking the Commonwealth Bank Accelerator Cash Account allows you to access automatic dividend redirection for all distributions related to the model. We notify share registries for each trade.

Are the Model Portfolios managed for tax optimisation?

Individual tax outcomes or capital account implications are not factored into the investment process unless specifically outlined in the mandate of the portfolio.

What if my client has existing holdings and would like to transition into a Model Portfolio?

Our CommSec Investment Management Team can assist you in the process of transition by preparing a comprehensive transition report with SOA template wording, transaction summary and associated independent research. The Investment Management Team can also construct a Bespoke Portfolio for your clients who do not suit a Model Portfolio for an additional cost.

How much does the Model Portfolios service cost?

To suit the changing needs of your advice business, you can choose to subscribe to our Model Portfolios based on your number of clients who require the service.

Please contact your CommSec Adviser Services BDM or the Investment Management Team for more information on our competitive pricing alternatives and rates.

How many Model Portfolios does CommSec Investment Management issue?

At this stage, we offer a range of objective-based Model Portfolios:

  • Income
  • Balanced
  • Growth
  • ETF
  • Bespoke Model Portfolios

 

What are the services offered with Model Portfolios?

  • Access to all Australian Equity and ETF Model Portfolios
  • Comprehensive research, basis of advice support and template SOA wording
  • Monthly Model Portfolio reports include portfolio holdings, investment performance, sector allocation and market and stock commentary
  • Daily CommSec Investment Management news bulletin
  • Ad hoc market sensitive information and RBA announcements
  • Premium access to the CommSec Adviser Services Trading Platform (live pricing) including multi-stock and multi-client trading
  • Phone, email and research support from the CommSec Investment Management Team
  • Full trade execution capability including bulk or algorithmic trading
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How do I get started?

Contact the CommSec Investment Management Team on 1800 252 351 (8:30am-5:30 pm Monday to Friday).

This information is only for AFSL Advisers. As this information is not advice and is prepared without taking into account your client’s objectives, financial situation or needs you should, before acting on this information, consider its appropriateness for your client’s circumstances.

Investment Management services under the CommSec Adviser Services brand are provided by Australian Investment Exchange Ltd (AUSIEX) ABN 71 076 515 930 AFSL 241400. AUSIEX is a wholly owned but not guaranteed subsidiary of the Bank. This information is not advice and is prepared by CommSec Adviser Services for wholesale, Australian Financial Services Licence (AFSL) holding clients only. No individuals, objectives, financial situation or needs have been considered.