Administration matters

Transcription

1 Macquarie Wrap Cash Management Trust Administration matters How saving time can make you money Macquarie Wrap Smart administration solutions made simple 2007 for Best Master Trust/Wrap provider

2 Table of contents 01 The value of administration. Making it easier to be a better investor. 02 Time and money. The benefits of a wrap platform. 03 A wrap system. 05 Reporting. Keeping things simple. 07 Taking the work out of paperwork. 08 Managing your money. 10 You re not alone. Help with your Self Managed Super Fund. 11 Keep in touch. Access your portfolio online, anytime. 12 Administrative expertise. Solutions from Macquarie. Macquarie Investment Management Limited ABN (MIML) is the trustee of Macquarie SuperOptions, Macquarie Super and Pension Manager and the Macquarie Super Accumulator ( Super Funds ), the responsible entity of the Macquarie Cash Management Trust ( CMT ) and the operator of Macquarie Investment Manager and Macquarie Investment Accumulator ( IDPS ). The information in this brochure is not personal advice and has been prepared without taking into account the objectives, financial situation or needs of any particular investor. Therefore, before investing in a Super Fund, the CMT or through an IDPS on the basis of this information, you should read the relevant Product Disclosure Statement (PDS) or IDPS Guide and consider, with (or without) your financial adviser, whether the investment fits your objectives, financial situation or needs. The current PDS for the Super Funds and CMT and the current IDPS Guides for the IDPS are avaialble from MIML or your adviser. Investments in the Super Funds, the CMT or through the IDPS are not deposits with or other liabilities of Macquarie Bank Limited or any other member company of the Macquarie Bank Group, and are subject to investment risk, including possible delays in repayment and loss of income or principal invested. No member company of the Macquarie Bank Group guarantees the performance of or the repayment of capital from the Super Funds, the CMT or investments made through the IDPS. Any financial product advice provided by MIML is free of charge. MIML may receive remuneration for distributing financial products issued by other member companies of the Macquarie Group.

3 The value of administration. Making it easier to be a better investor Diversification is one of the crucial parts of being a successful investor. It doesn t matter whether you re running an ordinary investment portfolio, a super portfolio or even managing your own super fund having a range of assets, funds, shares, lenders and managers offers crucial risk management benefits and investment choice. However, the more you diversify, the harder it is to keep track of your money and the less in control you are. It s more difficult to move your money around as you want to, the paperwork mounts up and keeping track of your transactions becomes complex and confusing making tax time complicated. A wrap platform supplies a simple, yet highly sophisticated and effective solution to this problem. By wrapping all your investments together on one technologically advanced administration platform, a wrap makes transacting faster and more efficient, cuts down the paperwork and makes it easier for you to manage your investments and reporting. In short, a wrap provides you the benefits of a sophisticated diverse portfolio but removes the administration hassles. It makes it easy to be a better investor and you can use a wrap for whatever investment structure you like investment, super or self-managed superannuation. With wealth comes responsibility

4 Time and money. The benefits of a wrap platform With a wrap platform, you will benefit from: n More information, less paperwork with all your investments in the one place, you receive consolidated, comprehensive reports from one source rather than piles of different paperwork from different funds and companies. n More for less wrap platforms offer you access to a wide range of investment options including wholesale managed funds that typically are not open to individual investors. Many of these wholesale funds also offer lower management fees. n With ease a wrap makes all sorts of investment transactions easier and faster. Whether you re switching, buying or selling shares or investing in a managed fund, wrap technology makes the process faster and reduces the human error that causes most administrative problems. n Online access a wrap platform provides a complete picture of your entire investment portfolio, anytime, with just a few clicks of your mouse. You can log on wherever you wish and monitor your investments with just a few keystrokes. Money often costs too much Ralph Waldo Emerson ( )

5 A wrap system. How a wrap works: n Via a wrap platform you get access to a broad range of investments like direct shares, instalment warrants and managed funds. n All your investment paperwork associated with your transactions are processed through this central platform. n Corporate actions such as share buybacks are managed on your behalf, according to your instructions. This greatly reduces ongoing administrative hassles and paperwork and assists with comprehensive, audited tax reports. n Your investment portfolio works with a central cash flow account. This means you combine a powerful investment vehicle with a flexible transactional facility that puts you in control of your money.* n The cash account takes care of all regular transactions into or out of your account: payments to the tax office; fees and charges and periodic payments to other institutions.* n You can also deposit directly into the cash account from different sources whether it s rent payments from an investment property or income from other investments. n A wrap gives you and your adviser a consolidated picture of your affairs so their advice to you is based on the latest, integrated view of your financial situation and financial progress. Time is more valuable than money. You can get more money, but you cannot get more time Jim Rohn (American speaker and author) * There may be some restrictions on access to superannuation monies due to government regulations.

6 The following diagram shows a wrap system at work. buy/reinvest n Income: n Investment n Rental n Other n Rollovers n Super contributions (incl. SMSF) Shares and wholesale managed investments Cash Management Trust $ sell/income $ n ATO payments (incl. SMSF) n Cash withdrawals n Contributions/earnings tax n Direct debits n Fees: n Adviser n Administration n Insurance premiums n Pension payments (incl. SMSF) n Periodic payments n Rollovers n Investment loan payments Transfer in Transfer in Shares and managed investments e.g. CBA, Telstra, BHP Future investment deposits

7 Reporting. Keeping things simple One of the biggest advantages of having a wrap appears at tax time. Gone are the days of searching for documents at tax time. A wrap creates an orderly paper trail of all the transactions for all your investments. When you need the information for tax reporting all the necessary records are ready and waiting. As part of a wrap s year end processes, the administrator will issue an Independent Taxation Review to determine whether the annual Tax Return Reports provided to you for year end purposes contain any misstatements or omissions in relation to taxation matters.* In addition to tax reports a wrap provides a range of other information to keep you abreast of your investments. The table below illustrates the variety of information available. Portfolio Snapshot For a complete overview of your portfolio and investment progress, the Portfolio Snapshot report combines asset allocation with income and growth information. Portfolio Valuation A comprehensive breakdown of your investment showing all your holdings across various investments. Asset Allocation Shows how your portfolio is spread across various asset classes, either in a table or as a chart. Detailed Asset Allocation Investment Transactions Superannuation details Pension Details Advice to Centrelink/Veterans Affairs Shows how each investment in your portfolio is spread across various asset classes. Details every transaction on your portfolio, sorted by holding. A snapshot of your superannuation tax components, estimated withdrawal balance, insurance and beneficiary details. A snapshot of your pension details, (including pension amounts and payment limits) tax components, account balance and beneficiary details. Assist you to obtain details of your income stream for Centrelink/Veteran Affairs. *For superannuation accounts, the wrap provider will deduct from your account the applicable superannuation funds earning tax each year.

8 Income and Expenses Dividend/Distribution Details Accrual basis Dividend/Distribution Details Cash Receipts Basis Realised Gains/Losses Unrealised Gains/Losses Fee Statement Cash Transactions Account details Lists all income and expenses of your portfolio by category. Lists all dividends and distributions received on an accruals basis. Lists all dividends and distributions received on a cash basis. Lists all realised capital gains. Lists all unrealised capital gains. A summary of fees deducted from your portfolio. A record of all cash transactions on your portfolio. Summary of account set-up, including contact details and automated features.

9 Taking the work out of paperwork. Transactions Through consolidated reporting and the ability to transact on your behalf, a wrap platform reduces your administration headaches and ensures all your investments are easily monitored. When it comes to transacting, you won t suffer tedious delays as paperwork moves back and forward between you, your adviser and investment institutions. Transactions like the following take place automatically. n Regular investment plans n Withdrawals/deposits n Distribution payments n Collecting dividends n Buy/sell orders n Call payments n Switches n Pension payments n Fee withdrawals Corporate Actions With your approval, your wrap provider can also receive and respond to all the corporate action correspondence from listed companies. This includes actions like: n IPO s n Takeovers n Buy backs n Share purchase plan n Rights (renounceable and non-renounceable) n Compulsory acquisitions Custodial structure A wrap platform has the ability to handle all these matters on your behalf because of its custodial structure. In the case of non-superannuation wrap or wrap for SMSF s while you remain the beneficial owner of the investments, your wrap provider the custodian holds legal title. You offload a great amount of paperwork but remain the owner of the underlying investments and receive all the benefits of holding them such as income payments, access to discount cards and special offers.

10 Managing your money. Capital Gains Tax For Investment assets a wrap may also allow you to transfer approved investments into your account without selling them which means you realise no capital gains and do not pay capital gains tax. Managing your cashflows automatically Every successful business starts with understanding the revenue streams and cash flows. Managing your cashflow is made even easier through the use of a central cash account. When you establish a wrap, you create a central, cash hub which all your transactions go through. With all dividends and interest payments processed via one account, managing your portfolio and investment cashflow strategy is much simpler. Shares and managed investments e.g. CBA, Telstra, BHP Transfer in Shares and wholesale managed investments buy/reinvest sell/income Shares and wholesale managed investments Cash Management Trust

11 A wrap platform also allows for automatic management of your cashflows taking the hassle out of regular investments and withdrawals and most importantly, helping you proactively manage the asset allocations in your portfolio. Depending on your platform and investment structure you may be able to: n Automatically and regularly rebalance your overall portfolio in line with your pre-determined asset allocation. n Automatically trigger reinvestments into nominated funds once your cash balance hits a certain level. n Automatically trigger cash withdrawals once your cash balance hits a certain level. n Arrange automatic dividend reinvestment into listed companies and reinvestment of managed fund distributions. n Pre-set regular investments into specific funds to enjoy the benefits of dollar cost averaging.

12 You re not alone. Help with your Self Managed Super Fund Self Managed Super Funds (SMSFs) offer flexibility, tax advantages and the ability to manage your own affairs. However, with these benefits comes greater responsibility and the regulators are now more stringent than ever to ensure it s done right. That s where a wrap can help. One of the most important responsibilities of SMSF trustees is to create and implement an investment strategy. A wide range of managed investments and listed companies available within a wrap allows you to construct and manage a diversified portfolio from one central point. That diversification includes a variety of asset classes and fund managers and access to international investment options. SMSF investors who use a wrap also get the benefit of a central cash account that guarantees easy and efficient administration. A wrap platform offers timely access to account and cashflow information so you can track all payments to and from your fund: contributions, dividends, distributions, pension payments, expenses and asset purchases or sales. A wrap s electronic transaction capabilities make it easy to collect income and share dividends and to automate payments and transfers. When it comes to record keeping, all cash transactions appear on one consolidated statement making accounting, tax returns, end-of-year auditing and long-term record keeping much easier and quicker to complete. A wrap platform allows you to download transaction information to different financial software packages so you can provide your financial adviser, accountant and stockbroker with detailed, consolidated and consistent information about your SMSF. The smaller the function, the greater the management. C. Northcote Parkinson ( ) 10

13 Keep in touch. Access your portfolio online, anytime By logging onto your wrap account you immediately connect to all of the information you need about your portfolio. Log on at home, in the office or at the airport. Wherever you are, as long as you can find the internet, you can find information on your portfolio. A picture of your investment The sample reports below illustrate some of the reports available online: Portfolio Valuation as at 26 July 2007 Account SAMPLE Name: Account No: XXXXXX Cash Transactions from 26 September 2002 to 26 July 2007 Transactions displayed in ascending date order Security Units Cost ($) Average Cost per Unit ($) Market Price ($) Market Value ($) P/Folio (%) Account Name: SAMPLE Account No: XXXXXX Cash Account XXXXXXXXXXXX No: LISTED SECURITIES Coates Hire Limited (COA) 8,280 19, , % GPT Group (GPT) 21,101 24, , % St George Bank Limited 10,427 82, , % (SGB) 126, , % MANAGED FUNDS AND LISTED TRUSTS Dimensional Australian Value 6, , * 165, % Trust (DFA0101AU) GMO Australian Equity Trust 32, , * 52, % (GMO0100AU) GMO Australian Small Companies Trust 24, , * 42, % (GMO0101AU) Perpetual Wsale Industrial 56, , * 115, % Fund (PER0046AU) Platinum Intl Brands Fund 11, , * 23, % (PLA0100AU) 257, , % DIRECT CASH CMT Account Cleared 65, , ( ) CMT Account h Uncleared/Held PENDING SETTLEMENTS 1 Pending Settlements , , % Portfolio under 450, , % Administration Total Portfolio 450, , % Date Description Debit ($) Credit ($) Balance ($) 26/09/2002 OPENING BALANCE $ /11/2002 PERPETUAL TRUSTE AG , $116, CR 21/11/2002 CHEQUE BOOK 7.00 $116, CR 21/11/2002 GENERAL PROPERTY , $117, CR 27/11/2002 W JBW0103AU APPLICATION 12, $105, CR 27/11/2002 W PLA0100AU APPLICATION 15, $90, CR 27/11/2002 W VAN0105AU APPLICATION 25, $65, CR 27/11/2002 W SBC0816AU APPLICATION 28, $37, CR 27/11/2002 W GMO0101AU APPLICATION 28, $9, CR 03/12/2002 W VAN0103AU REDEMPTION 52, $62, CR 04/12/2002 WRAP SOLUTIONS ADVISER FEE $62, CR /12/2002 WRAP SOLUTIONS ADMIN FEE $61, CR 06/12/2002 W PER0046AU REDEMPTION $69, CR 8, /12/2002 W PER0106AU APPLICATION $39, CR 30, /12/2002 W UBS0003AU APPLICATION 33, $6, CR 16/12/2002 ST GEORGE BANK DEC02/ $11, CR 4, /12/2002 W FSF0003AU REDEMPTION 77, $88, CR 24/12/2002 W GMO0100AU APPLICATION $48, CR 40, /12/2002 W DFA0101AU APPLICATION 45, $3, CR 24/12/2002 SELL 3200 TLS $17, CR 13, /01/2003 WRAP SOLUTIONS $17, CR ADVISER FEE /01/2003 WRAP SOLUTIONS ADMIN FEE $16, CR 07/01/2003 DIST UBS HYBRID INCOME FUND $16, CR /01/2003 DIST UBSAM PROPERTY SEC FUND $17, CR 08/01/2003 DIST GMO AUSTRALIAN SMALL $17, CR COMPANI 08/01/2003 DIST GMO AUSTRALIAN EQUITY TRUST $17, CR 10/01/2003 DIST BMIF AUST EQTY INDEX FUND $17, CR 14/01/2003 DIST VANGUARD AUST FI $17, CR 14/01/2003 DIST CSAM AUST FI $18, CR 14/01/2003 DIST DFA AUST VALUE $18, CR 20/01/2003 DIST CITIGROUP PROP SEC $19, CR 23/01/2003 DIST PERP W/S MTH INC $19, CR 23/01/2003 DIST PERP INDUSTRIAL $19, CR 24/01/2003 INTEREST PAID $20, CR 24/01/2003 RES INVEST W'HOLDING TAX $19, CR /02/2003 WRAP SOLUTIONS ADVISER FEE $19, CR 04/02/2003 WRAP SOLUTIONS ADMIN FEE $19, CR 07/02/2003 DIST PERP W/S MTH INC $19, CR /02/2003 W BGL0034AU REDEMPTION 61, $81, CR 18/02/2003 BUY 635 RIO $60, CR 20, /02/2003 BUY 1160 FOA 21, $39, CR 18/02/2003 BUY 1655 WSF 21, $18, CR 25/02/2003 GENERAL PROPERTY $19, CR , /03/2003 WRAP SOLUTIONS ADVISER FEE $19, CR /03/2003 WRAP SOLUTIONS ADMIN FEE $18, CR 07/03/2003 DIST PERP WHOLESALE MTH INC $18, CR /04/2003 WESTFIELD DIV MAR03/ $18, CR 03/04/2003 WRAP SOLUTIONS ADVISER FEE $18, CR /04/2003 WRAP SOLUTIONS ADMIN FEE $18, CR 04/04/2003 DIST UBS HYBRID INCOME FUND $18, CR The technologies which have had the most profound effects on human life are usually simple. Freeman Dyson (English Physicist, b. 1923) 11

14 Administrative expertise. Solutions from Macquarie Adviser Services Macquarie Wrap Investment Macquarie offers a range of wrap platforms to support your general investment needs (and SMSF needs) designed specifically for superannuation: n Macquarie Investment Manager gives you access to more than 500 wholesale managed investments, all eligible CHESS approved ASX-listed securities and a choice of margin lenders. n Macquarie Investment Accumulator provides access to more than 130+ managed investments for those with smaller balances to invest. Superannuation Macquarie also offers a range of wrap platforms designed specifically for superannuation: n Macquarie Super and Pension Manager with more than 500 managed funds, absolute return investment options and easy administration when transferring into a pension. Access is provided to approved ASX listed securities that include shares and other listed securities such as property trusts. n Macquarie Super Accumulator also includes a wide variety of over 100 wholesale managed funds and seamless transfer to Pension Manager. n Macquarie SuperOptions a simpler approach to super that allows you to tailor an individual portfolio from a range of more than 40 managed funds. Macquarie Cash Management Trust (CMT) A cashflow management system can help you monitor and manage your cashflow so that you can put your spare cashflow towards assets that will produce future income, such as: shares, investment property, managed funds etc. The Macquarie CMT was introduced in 1980 and was the first CMT in Australia. Today it is the largest retail managed fund in Australia with more than $18 billion in funds under management (as at July 2007). The Macquarie CMT has been tailor made for investors and self-managed super funds (SMSFs). It is now* the most preferred CMT for SMFSs Australia, with one in four SMSFs in using the Macquarie CMT. The Macquarie CMT is a very secure investment and has the highest credit rating (AAAm) from Standard & Poor s, the highest credit rating available to a cash management trust. * As at 27 July 2007 Standard & Poor s Information Services (Australia) Pty Ltd ABN , referred to as Standard & Poor s. 12

15 Why Macquarie Adviser Services (MAS)? All of Macquarie Wrap offerings are underpinned by the latest in investment administration technology and backed by a team of professional customer service and administrative staff. Macquarie Adviser Services s customer services team has won multiple service awards thanks to a service philosophy that promotes the highest standards, teamwork and commitment to our clients. Australian financial advisers ranked MAS number one for best Wrap and fund manager in the 2007 Wealth Insights/ASSIRT Service Level Awards, and independent actuaries Rice Warner also voted Macquarie Wrap Platform of the Year Award (for Super) in the 2007 Australian Financial Review Smart Investor Blue Ribbon Awards. In addition, as part of Macquarie Wrap s year end processes, Deloitte Touche Tohmatsu conducts an Independent Taxation Review to determine whether the annual Tax Return Reports provided to you contain any misstatements or omissions in relation to taxation matters. A copy of their signoff letter is included at the back of the Tax Guide which is part of the year end pack you receive. Ernst & Young also conduct a review of Macquarie s internal controls and make a statement as to the adequacy of these controls and whether they impact upon accuracy of the year end reports Wrap issues. Experience Macquarie Wrap is backed by Macquarie Investment Management Limited an administrator with more than 20 years experience and a proven track record. Macquarie s Wrap business had more than $26 billion in funds under administration (July 2007).

16 If you have any questions or require more information, please speak to your financial adviser. Financial adviser s stamp BKL /07