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Frequently Asked Questions

About Republic Wealth Management

What is Republic Wealth Management?

Republic Wealth Management is an automated investment service offered by Spitfire Asset Management Pty Ltd (ABN 94 605 492 635) which operates as a Corporate Authorised Representative (AR No. 001008997) of CIP Licensing Limited (ACN 603 558 658), AFSL Number 471728.

How do I contact Republic?

Our office hours are Monday to Friday 9am to 5pm AEST.

Email: corporate@republicwealth.com.au

Phone: (02) 7200 2000

Mail: Republic Wealth Management, L20 207 Kent Street, Sydney NSW 2000

Our preference is to receive correspondence via email so that we may provide the best possible customer service in line with us being an online service provider.

Do you receive commissions from third parties?

No. We do not receive commissions or other such payments from third party partners for this service, including product providers and financial advisers. We believe doing so would be against the integrity of the industry and our customers interests.

Investing with Republic Wealth Management

What am I investing in when I invest via Republic Wealth Management?

When you invest via Republic, you are investing in one or more of our portfolios that consist of exchange traded fund’s (ETF’s). An ETF is an investment fund that is traded on a stock exchange; currently our portfolio’s only consist of ETF’s listed on the Australian Securities Exchange (ASX). ETFs, generally aim to track the performance of an underlying index or asset class, for example the S&P/ASX 200 Index. ETFs allow investors to access a broad range of investments through a single security.

How are the portfolios built and what investment strategy are they based on?

Our investment philosophy is to reduce risk while using ultra-low cost funds from some of the most well-respected companies in the industry, including Vanguard and iShares. We believe in creating broadly diversified portfolios, specifically in stocks, bonds and property, that give you exposure to investments in Australia and internationally.

Republic uses a Scenario Analysis approach to strategic asset allocation (SAA). SAA provides a quantitative framework to test expectations of future events: asset market returns and market volatility, incorporating market insight and portfolio construction experience.

Republic believes that this approach makes more complete use of qualitative insights and available information. It also allows more complete testing of various time frames, return distributions and tail risk than is possible using the more rigid Modern Portfolio Theory (MPT) approaches.

What portfolio’s do you offer and can I choose my own investments?

Republic currently operates an array of portfolios that range from Conservative through to High Growth. These portfolios have been mapped to the Risk Survey that our clients complete.

We do not allow any variance from the portfolio’s we have designed, and hence do not allow personal investment selection. The portfolios have been rigorously analysed and carefully designed by individually selecting ETF’s that aim to provide clients with a risk exposure that is aligned with their risk profile. Client changes to individual securities in their account would alter the overall risk exposure of their portfolio and could lead to divergence from their risk profile.

What is the minimum amount that I can invest via Republic?

$5,000, however your investment may be ‘phased-in’ until such time your balance increases sufficiently so we can build a fully diversified portfolio for you. Portfolios that have a balance of less than $10,000 will be ‘phased-in’ over time. In doing this, Republic aims to implement your Investment Programme whilst minimising the overall volatility of your portfolio.

How are my cash and securities held?

Both your cash and securities are held under you own name.

A dedicated Cash Management Account (CMA) will be set up in your name with Macquarie Bank.

A unique HIN (Holder Identification Number) will be issued to you, and all securities will be held under this HIN, identifying you as the holder of those securities on the ASX CHESS sub register.

Republic Wealth Management - Fees

What are Republic’s fees?

Republic will charge you an ongoing advice fee of $150 + GST per annum and a MDA Management fee of 0.075% of your portfolio value per month + GST (0.90% +GST per year). These fees apply to each account you hold with Republic.

Are there any other fees that I should know about?

Each ETF charges its own management fee. These fees are separate to Republic’s fees and are charged indirectly via the ETF unit price. The average ETF fees across the Republic portfolios are 0.17% to 0.24% per year. At approximately 0.24%, that’s about $24 per year for a $10,000 portfolio.

We do not charge exit or entry fees and there are no additional fees should you decide to invest on a regular basis.

All brokerage and execution charges are covered as part of our service.

Account monitoring & reporting

Can I view my Republic portfolio?

You have 24/7 access to monitor your portfolio via the 'Sign In' link on our homepage. You can view your performance, holdings, trades and a comprehensive range of tax reports.

Investment Process

How do I open an account with Republic?

Go to https://www.republicwealth.com.au and click "Get Started", and follow the steps on the screen.

Do I have to provide my Tax File Number (TFN)?

You do not have to provide your Tax File Number (TFN) to Republic, however withholding tax could be deducted from your interest earnings if you choose not to.

Why do I have to link a bank account to the CMA account?

This enables us to transfer funds to you out of your CMA account when you request that we sell down your assets for a cash withdrawal or close your account. This in no way gives Republic authority to withdraw from the account you link to your CMA account. For your security, the bank account you link to your CMA and your CMA account must be in the same name.

What if I fail the online ID verification process?

If you fail the online ID verification process we need to take extra steps to verify your identity. We will contact you in regards to further documentation requirements.

How do I fund my Republic account?

Funds can be transferred to your Republic CMA account by BPAY or electronic funds transfer (EFT) as soon as your account details have been provided to you.

What happens once I transfer funds to my Republic CMA account?

We will start to build your portfolio, according to your Investment Programme by investing the funds all at once. You will be notified by email of all investments made on your account. Remember, you can monitor your portfolio online 24/7.

Can I invest in more than one Republic portfolio or open multiple accounts?

Yes, you can invest in more than one Republic portfolio however you will be required to open a separate account for each Investment Programme and for audit purposes. We can only recommend portfolio’s based on the results of your personal situation and risk assessment. Hence you will need to complete another online application commencing with a new risk assessment for any subsequent accounts you wish to open, using a different email address.

You will be required to follow the same process as for setting up your initial account with Republic.

Account management

Why do you rebalance my portfolio and how often do you do it?

Over time the securities held in each portfolio will drift from their original asset allocation which results from the included investments performing differently, that is some better than others. We bring the portfolio’s back in-line with the original asset allocation by rebalancing it, which reduces risk over time. We continually monitor the performance of our portfolio’s as it cannot be predicted in advance when rebalancing may be required. You will however be notified when a ‘rebalancing’ occurs on your portfolio.

We also use deposits, withdrawals and reinvestment of distributions as opportunities for rebalancing your portfolio.

What if my situation changes and I feel my investment strategy is no longer appropriate?

You can make changes to your investment profile by instructing us to close your original account, and setting up a new account through our website. Please see the section "Can I invest in more than one Republic portfolio or open multiple accounts"

Can I trade my funds myself?

As the MDA manager we administer your investments for you. As funds are invested and managed according to the Investment Programme, clients don't have the ability to personally trade in and out of securities within their Republic account.

What happens with Investment Income – dividends & franking credits?

Dividends and distributions are accrued and paid into your CMA. We use any dividends to rebalance your portfolio which in turn means that we do not allow participation in any Dividend Reinvestment Plans offered by the ETF’s.

In regards to any applicable franking credits, you will see the details of such on your annual tax statement from us.

How do I make additional contributions to my investment portfolio?

You can deposit money into your Republic cash account at any time via BPAY or electronic funds transfer (EFT). There is no minimum amount required for additional contributions. Money deposited is typically invested within 1 to 3 business days if the balance of your cash account is more than $1,000 which is the minimum account balance required before we make new investments.

Why is there uninvested funds in my cash management account (CMA)?

There will be remaining funds in your account if there is not enough cash to purchase complete ETF units and to cover Republic’s fees.

How do I withdraw from my Republic investments or close my account?

Please ensure that you have linked your CMA to an external bank account in the same name. Once the accounts are linked, simply email your withdrawal instructions to corporate@republicwealth.com.au

Partial withdrawals can be made provided that the withdrawal amount is more than $2,000, and the remaining balance of your portfolio will be greater than $5,000.

Full withdrawal of your investments takes approximately 4-5 business days in accordance with the standard ASX settlement timeline of T+2. The funds will then be transferred to your linked bank account and accounts closed.