BT Elect Portfolio

BT Elect Portfolio provides you with direct access to Australian shares and listed property trusts without having to spend time on research and daily monitoring of your portfolio. You can see the shares purchased on your behalf and receive the benefits of all income, dividends, franking credits and capital gains/losses. This fulfils the desire for transparency, ownership of direct shares and professional investment management sought by many investors.

  • The minimum investment for BT Elect Portfolio is $100,000.

Benefits of investing in BT Elect Portfolio

Investment strategies

BT Elect Portfolio provides you with access to BT Portfolio Management's professional portfolio management expertise. Model portfolios are formulated from expert research by our team of analysts and portfolio managers. BT Portfolio Management's professional portfolio managers make decisions on which securities to buy and hold on your behalf on an ongoing basis.

When investing in BT Elect you retain the key benefits of a professionally managed portfolio, while maintaining beneficial ownership of the securities in your portfolio in the same way as if you had purchased the securities directly. Investors also receive wholesale rates of brokerage not available to individual investors.

Different investment strategies

BT Elect Portfolio offers a range of different investment strategies - also known as model portfolios - designed to match different investor objectives and risk/return profiles. You and your adviser can make a choice of one or more model portfolios and BT's Portfolio Managers then create your own portfolio which reflects the particular model portfolio(s) you have selected. The model portfolios are actively managed with the fund manager making changes to the composition and weightings of stocks as their view of the market changes.

The model portfolio manager may make changes to securities held in your portfolio for a number of reasons. Some of these include our views on these securities, market movements and the overall composition of the model portfolios. The model portfolios will be monitored daily and subjected to a weekly review.

Retain beneficial ownership of the securities held in your account

Investors choose separately managed accounts like BT Elect Portfolio for the following reasons:

Flexibility

BT Elect Portfolio provides you with the flexibility of being able to move shares into or out of your portfolio. This is possible as you retain beneficial ownership of the securities held in your account. You may also contribute and withdraw from your account in either cash or securities. Transferring securities in or out of your BT Elect Portfolio does not result in a realisation for capital gains tax (CGT) purposes, unless you cease to be the beneficial owner of a security.

Transparency

With BT Elect Portfolio, you can go into the secure BT Portfolio Management website to view all the securities within your model portfolio and see the transactions that have been made on your behalf. This overcomes investor concerns over the level of disclosure of securities provided by traditional managed investment offerings.

Tax efficiencies

Better management of your tax situation is achieved through the following:

Ability to choose tax accounting methods

BT Private Portfolio offers you a choice of tax accounting methods. These are:

  • Maximise capital losses or if no capital losses are available minimise capital gains
  • First In First Out method
  • Maximise capital gains or if no capital gains available minimise your capital losses.

Portfolio structuring

BT Elect Portfolio managers will consider tax efficiency in the management of the model portfolios. They will also endeavour to structure the portfolio and transact in a tax efficient manner while maximising performance in line with the objectives and risk/return profiles of the models. This may provide you with improved after tax returns.

Individual cost base

A significant tax advantage of the BT Elect Portfolio is that you have your own individual cost base for the securities held in your portfolio for tax purposes. This is different to managed funds where you share ownership of the underlying shares with all the other investors in the fund.

As you maintain beneficial ownership of the shares in your portfolio, BT Elect Portfolio provides you with an individual cost base for tax purposes. This allows you to receive all dividends, franking credits, capital gains/losses, attributable to your securities, rather than sharing them with other investors.

Another advantage of an individual cost base when investing in BT Elect Portfolio is the absence of embedded capital gains in the portfolio. In contrast to traditional managed fund offerings, BT Elect Portfolio investors are not be subject to tax on capital gains generated before the day they invested in their own portfolio assets.

Model portfolios

Choose your BT Elect Model Portfolio:

Core

Asset class Australian Equities
Category Core
Investment objective The portfolio aims to provide strong capital growth over the long term. The primary focus of the portfolio is on capital growth with a secondary focus on tax effective income.
Investment strategy The portfolio is actively managed2 and invests primarily in Australian shares that we believe are trading at a discount to their assessed value. Tax efficiency will be a consideration in the construction and share trading activity. Turnover of shares will be minimised while maintaining the investment objective of the model.
Time frame Five years or more

Tax Efficient

Asset class Australian Equities
Category Tax Efficient
Investment objective The portfolio aims to provide a strong return over the long term comprised of capital growth and income. The primary focus of the portfolio is on providing tax effective return with added emphasis on income.
Investment strategy The portfolio is actively managed2 and invests primarily in Australian shares that we believe are trading at a discount to their assessed value and offer above average dividend returns and franking levels. Tax efficiency will be a consideration in the construction and share trading activity. Turnover of shares will be minimised while maintaining the investment objective of the model.
Time frame Five years or more

Concentrated

Asset class Australian Equities
Category Concentrated
Investment objective The portfolio aims to provide a high level of capital growth over the long term by investing in a concentrated portfolio of Australian shares.
Investment strategy The portfolio is actively managed2 and invests primarily in Australian shares that we believe are trading at a discount to their assessed value. The portfolio will take potentially higher risk, in exchange for a potentially higher return. Turnover of shares is expected to be higher than the Core and Tax Efficient models.
Time frame Five years or more

Specialised

Asset class Australian Equities
Category Specialised
Investment objective The portfolio aims to provide a strong long term grossed-up return to tax exempt investors who are able to utilise franking credits1.
Investment strategy The portfolio is actively managed2 and invests primarily in Australian shares that we believe are trading at a discount to their assessed value. BT's standard active share approach of rigorous analysis and portfolio construction is the base to which we then overlay specific post-tax share processes. The portfolio will offer higher than average yield and franking levels, and be active in the turnover of shares.
Time frame Five years or more

Listed Property

Asset class Australian Property
Category Listed Property
Investment objective The portfolio aims to provide a strong return comprised of capital growth and income over the long term.
Investment strategy The portfolio is actively managed2 and invests primarily in Australian listed property trusts, Australian listed property securities and other properly related investments. Tax efficiency will be a consideration in the construction and trading activity of the portfolio.
Time frame Five years or more

1 Registered charities that are endorsed by the Commissioner of Taxation as being income tax-exempt and superannuation funds funding current pension liabilities.
2 "Active" management refers to the management of the Portfolio with the aim of exceeding the average returns of the relevant market.

For more information on each of the model portfolios, please refer to the Product Disclosure Statement (PDS) (PDF 128KB)

Online portfolio administration and reporting

BT Elect Portfolio makes the following reports available to you and your adviser from the secure website:

Reporting

Daily
  • Portfolio valuation - detailed and summary
Quarterly
  • Income and expenses
  • Portfolio performance report
  • Portfolio valuation - detailed and summary
  • Transaction summary
  • Tax invoice
Annual
  • Income and expenses - detailed and summary
  • Income reconciliation
  • Realised Gains and Losses
  • Tax Statement
  • Transaction Report

Market intelligence

  • Weekly market update - Week in review
  • Month in review - Market review for the month
  • US Corner - latest US economic commentary

Client communications

  • Confirmation of any transactions or amendments that are made are posted to the secure website.

BT Elect Portfolio brings you, your adviser and BT's investment professionals together to maximise the efficiency and effectiveness of your investments.

For more information

To maximise the benefits of the BT Elect Portfolio offering, you should consider working with a financial adviser. BT Elect Portfolio has been designed to operate in conjunction with an authorised representative (typically a financial adviser).

Financial advisers play an important role in matching your objectives with the most appropriate risk/return profiles of the various models and determining how BT Elect Portfolio fits into your broader asset allocation.

BT Elect Portfolio is distributed via Westpac Financial Planning and Magnitude Financial Planning.

To find out more information or to request a PDS for BT Elect Portfolio, contact us by either: