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New automated investing service to target SMSFs

A new automated online investing service aimed at providing SMSF members with a low-cost, well-diversified portfolio has been released to the market.

QuietGrowth launched the new facility in September, giving SMSF investors a choice of five model portfolios consisting solely of exchange-traded funds (ETF).

The appropriate model portfolio is selected on the basis of the investor’s risk profile, with higher-risk portfolios having a larger allocation to equities and lower-risk portfolios containing a larger fixed income component.

“Currently we offer eight ETFs in the portfolio across a variety of asset classes,” QuietGrowth chief executive Dilip Sankarreddy told selfmanagedsuper.

“So we include Australian shares, Australian bonds, US, European and Japanese equities, emerging markets, gold and high-yielding stocks.”

The online service updates the performance information of each model portfolio on a daily basis and provides its own reporting facility for investors.

“Our clients will not have to go to some other website to access their portfolio performance and transaction information,” Sankarreddy said.

He added the reporting functionality had been established to provide users with the reports they would require for tax purposes.

The service did not include advisory fees, brokerage or trading fees, rebalancing fees, performance fees, entry fees or exit fees, he said.

In regard to the annual fee, QuietGrowth is charging 0.6 per cent on portfolios between $10,001 and $30,000, 0.5 per cent for portfolios between $30,001 and $200,000 and 0.4 per cent for portfolios in excess of $200,001. Portfolios in the range of $2000 and $10,000 are fee free.

The minimum investment amount is $2000.

Sankarreddy said QuietGrowth would consider expanding the range of ETFs used to construct the model portfolios beyond eight, but a move like that would only be made if it was established investment outcomes could be significantly improved.

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