For BlackRock SuperSMA FAQ please click on this
link.
Applications
Why can't I obtain a hard copy of the product disclosure statement?
Where do I send my application form?
What happens with my application?
About
Am I the beneficial owner of my shares?
Transacting
How are my initial funds invested?
How do I make additional investments?
Do I retain a minimum cash holding?
How does 2020 DIRECTINVEST BlueChip Series rebalance my portfolio?
What is the difference between a fixed or floating model portfolio weighting?
How are my regular contributions invested?
When are dividends paid?
How are my dividends paid?
Can I make a partial withdrawal from my BlueChip Series account?
How can I close my BlueChip Series Account?
Reporting
Will I receive anything in the mail?
What on-line reporting do I receive?
What tax reports do I have access to on-line?
Margin Loan
Can I borrow to invest in the 2020DIRECTINVEST BlueChip Series?
Please Contact Us if you have a question that you would like to ask us.
- Why can't I obtain a hard copy of the product disclosure statement?
2020 DIRECTINVEST have brought this product to our clients with the intention to provide an innovative, low cost product. In doing so, we have created a product that is entirely electronic and online. We hope you appreciate that in order to provide you with the cheapest product possible, only electronic copies of the PDS will be available.
Back to Top
- Where do I send my application form?
2020 DIRECTINVEST
Reply Paid 85514
Sydney NSW 2000
- What happens with my application?
2020 DIRECTINVEST will have your account opened within 24 hours of receiving your completed application form. Once this account is set up, your original application will be forwarded to BlackRock Investment Managers on the same day to be processed for payment.
Where you've chosen Direct Debit, funds will be deducted from the nominated bank account on the same day as the application is received by BlackRock. Your funds will then be included in the next business day's rebalancing process. Where you've chosen BPay, your funds will be included in the rebalancing process on the next business day after your deposit is received.
- What happens if a new Company enters the index in my model portfolio?
The key benefit of the an index strategy is the ability to constantly accumulate a direct share ownership in Australia's leading companies. When the market capitalisation of a company increases, it will be automatically purchased for you.
The shares in the company it has replaced will be sold, with proceeds reinvested into the new company.
Back to Top
- Am I the beneficial owner of my shares?
Under the BlueChip Series structure, you are the beneficial owner of your shares. Importantly, unlike an investment in a managed fund, when you buy shares through BlueChip Series you will also create your own tax cost base.
If you choose to transfer your shares out of BlueChip Series to yourself, you may not create a CGT event.
- How are my initial funds invested?
The investment process begins with an initial contribution which are placed in your 2020 DIRECTINVEST BlueChip Series investment cash account and used to purchase shares in accordance with your selection of Model Portfolio. The allocation of funds within your chosen Model Portfolio will be in the approximate ratio of their market capitalisation.
Back to Top
- How do I make additional investments?
When you open a BlueChip Series account you will be issued with a BPAY Biller and Customer code that is unique to your account. Simply make a BPAY transfer at your bank or via internet banking.
Back to Top
- Do I retain a minimum cash holding?
A cash balance of approximately 2% of your total investment will be retained to cover fees. Interest is paid on any cash that is retained in your 2020 DIRECTINVEST BlueChip Series cash account.
Back to Top
- How does 2020 DIRECTINVEST BlueChip Series rebalance my portfolio?
From time to time, your share portfolio may be rebalanced to reflect the changing values of the companies you own, or to retain your 2% cash position. This will be undertaken automatically through the buying or selling of shares within your portfolio. The purpose of this is to seek a return on your portfolio that is consistent with the investment objective of your chosen Model Portfolio.
Back to Top
- What is the difference between a fixed or floating model portfolio weighting?
Applying the Model Portfolio weights on a floating basis means that if the performance of the model portfolio changes, then the relative values of the Model Portfolios will not be adjusted to its original weighting– they will continue to move independently from each other according to each Model’s relative performance.
If you choose to fix the weightings at every rebalance then the proportion of your Personal Portfolio attributable to each Model Portfolio will remain the same as the Model Portfolio weights that you originally selected.
Back to Top
- How are my regular contributions invested?
Your monthly contributions will be used to buy those shares that your portfolio is the most underweight in at the time. This process occurs automatically.
Back to Top
Dividends are paid depending on the schedule of distribution by the individual companies therefore are subject to vary according to their reporting periods. Because you have direct ownership of the shares, unlike a managed fund, you will not receive regular income distributions but rather dividends from individual companies the same as if you purchased the shares independently and individually.
Back to Top
Your dividends are directed to your interest-bearing deposit account linked to your Personal Portfolio. The funds will then be reinvested across your share portfolio (subject to maintaining the minimum cash balance of 2%).
Alternatively, you can also choose to have your dividends paid into a separate cash account within your personal portfolio which is not included for reinvestment and is paid into your linked nominated bank account on the first of each month.
Back to Top
- Can I make a partial withdrawal from my BlueChip20 account?
Partial withdrawals can be made in cash, stock or a combination of both.
You may instruct the withdrawal to be a nominated cash amount where your shares will be sold and the cash deposited into your nominated bank account.
You may also wish to make the withdrawal by way of nominating specific shares to transfer in-specie to you.
To request a partial withdrawal, please complete and return the withdrawal request form available from our Forms page.
Back to Top
- How can I close my BlueChip20 Account?
If you wish to close your 2020DIRECTINVEST BlueChip20 Account, you may instruct BlackRock to withdraw all of your investment.
Withdrawals can be made by cash, stock or a combination of both.
If you wish for the withdrawal to be effected partly in cash and partly by way of a transfer of securities, the nominated shares will be in-specie transferred to you, any remaining stocks will be sold down and finally the cash deposited into your nominated bank account following the completed sale.
To request an account closure, please complete and return the account closure form available from our Forms page
Back to Top
- Will I receive anything in the mail?
No. The 2020 DIRECTINVEST BlueChip Series was specifically designed to be a cost effective online product, therefore all account information and your Personal Portfolio is viewed online. You will receive nothing in the mail unless you elect to receive a hard copy of the Annual Financial Report. By applying for an Account you agree to obtain reports electronically.
Back to Top
- What on-line reporting do I receive?
BlueChip Series recognises that you may want access to your share portfolio 24/7.
BlueChip Series delivers web based reporting to you day and night. Your share portfolio details are updated daily, so you can log on at any time and check the value of your shares and any trading activity.
You can also see your current investment loan balance, dividend payments, cash activity and monitor the performance of your portfolio.
- What tax reports do I have access to on-line?
Buying direct shares in twenty companies on a regular basis would normally generate significant paperwork. But when you invest through BlueChip Series, all this is taken care of for you.
The cost base of your shares is automatically adjusted with each trade and all dividend payments are recorded and paid to your account. Any corporate actions are automatically actioned and recorded.
Complete and concise records, available on-line at any time, simplify the preparation of your annual tax return.
- Can I borrow to invest in the 2020 DIRECTINVEST BlueChip20?
If you wished to borrow to invest in the 2020 DIRECTINVEST BlueChip20, you can do so through Leveraged Equities or BT Margin Lending. Please contact us for further information on how you may use these facilities or visit the BT Margin Lending page.