BT Private Portfolio

Highly individualised service

BT Private Portfolio provides you with the opportunity to access BT Financial Group's professional portfolio management expertise. The service gives you direct access to your own BT Private Portfolio manager who purchases and manages a diversified portfolio of direct securities and wholesale managed funds on your behalf.

Your portfolio of investments is purchased specifically for you, allowing more flexibility than a managed fund, and can take into account your tax position.

Create an integrated and diversified portfolio

BT Private Portfolio allows your investments to be tailored to suit your individual objectives by making available investments covering a range of risk/return preferences and investment styles.

Access to expert investment professionals

Investing with BT Private Portfolio is an integrated process allowing you to tap into the recognised capability of the BT Portfolio Management team. We draw on the research provided by BT's large team of equity and property analysts to construct Australian shares and listed property trusts portfolios. Stocks are selected based on their long term worth and then combined using risk management techniques that help to produce performance at a level of risk considered appropriate.

Private portfolio blueprints

BT Private Portfolio's investment process produces five portfolio blueprints, offering you a choice of one of four distinct Australian share portfolios and one Australian listed property portfolio. With the help of your financial adviser you can select one or more of these portfolios which may form the core of your investment portfolio.

Your BT Private Portfolio Manager may also select additional securities or choose not to hold particular securities in the 'blueprint' tailored to any preferences you may have.

Managed funds

For other asset classes - international shares, domestic and global fixed interest, global property, alternative assets and cash - we generally invest your portfolio in BT and alliance partner wholesale managed funds.

Model portfolios

BT Private Portfolio blueprints available:

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)

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.

Individual direct ownership of Australian shares and listed property

BT Private Portfolio also gives you the opportunity to retain ownership of the underlying securities in your portfolio, and to take advantage of the associated benefits. This means you receive dividends and franking credits directly related to the investments you hold. The capital gains tax consequences are similarly attributable to your investments and not those generated by other investors. Unlike a managed fund your statement shows exactly which Australian shares and listed property trusts you hold.

The Australian shares and listed property trusts you currently hold can be transferred into BT Private Portfolio with ownership still retained by you.

More effective tax management

Investors may choose individually held portfolios like BT Private Portfolio to manage their tax position more effectively.

At your overall portfolio level

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's Private Portfolio managers aim to manage the 'portfolio blueprints' for tax efficiency. The portfolio manager will attempt to structure the portfolio, and time the transactions, to minimise the tax impact while maximising performance in line with the objectives and risk/return profiles of the 'portfolio blueprints'. This may provide you with improved after tax returns.

At your portfolio blueprint level

Individual cost base from portfolio blueprints

As you directly own Australian shares and listed property through BT Private Portfolio, you obtain the tax benefits from having your own individual cost base for these securities. This is different to more traditional managed investments where you share ownership of the underlying shares together with all the other investors in the fund and you may be liable for capital gains generated before the day you invested in that fund.

The following table summarises the taxation outcomes that may occur from investing in the portfolio blueprints.

	BT Private Portfolio blueprints	Managed funds
Ownership	You have a direct beneficial interest in listed shares and property trusts.	You hold units in a fund that invests in listed shares and property trusts. The beneficial interest in the fund's assets is divided proportionally amongst all unit holders.
Capital gains tax (CGT) liability	Individually held listed shares and listed property are purchased for you so you do not inherit pre-existing CGT liabilities.	You may inherit any unrealised CGT liabilities already in the fund (possibly since inception).
Investment selection	You can add your own holdings and exclude any holdings you wish to avoid.	You have an interest in a proportion of the whole pre-selected basket.
Transfer of existing assets	You can transfer into your portfolio existing share holdings usually without triggering CGT (as long as there is no change in beneficial ownership).	Not normally possible.
After tax returns	The timing and method of the asset sales may lead to higher after-tax returns.	Sales and purchases of assets are made on behalf of the whole fund. Any realised net capital gain is distributed by the fund, and any excess realised capital losses are carried forward in the fund to offset future realised capital gains.

Online portfolio administration and reporting

You and your adviser have online access to the following:

Reporting

Daily

• Portfolio valuation - detailed and summary

Quarterly

• Income and expenses
• Portfolio performance report
• Portfolio valuation - detailed and summary
• Stock performance report
• Transaction summary
• Tax invoice
  

Annual

• Income and expenses - detailed and summary
• Income reconciliation
• Realised Gains and Losses
• Tax Statement
  

Comprehensive administration

Comply and report on the following:

• All income received
• Components (including franking credits) of distributions and dividends
• Corporate actions
• Cash movements and stock movements

Market intelligence

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

Market performance

• BT Private Portfolio benchmark returns