Want your investments automated online? QuietGrowth is worth looking into

Information verified correct on December 12th, 2016

quiet-growthQuietGrowth could be an easy way for you to build wealth by investing in ETFs.

QuietGrowth is a robo advice platform that automatically invests your money to match your risk profile and investment goals.

Each QuietGrowth investment portfolio gives you access to a stake in eight Exchange Traded Funds (ETFs) across six asset classes. If you’re an individual, trust or SMSF, you can start investing with as little as $2,000.

What asset classes can I invest in?

QuietGrowth selects ETF investments in the following asset classes:

  • Australian Shares
  • International Developed Market Shares
  • International Emerging Market Shares
  • Dividend Shares
  • Bonds
  • Natural Resources

How many portfolios does QuietGrowth offer?

QuietGrowth offer five low to high risk portfolios. The robo adviser diversifies your investment by buying a stake in eight ETFs across six asset classes.

Portfolio Asset Class SharesBondsNatural Resources
1
  • Shares 33%
  • Bonds 61%
  • Gold: 6%
  • Financials (11.39%)
  • Materials (4.55%)
  • Industrials (2.60%)
  • Healthcare (1.75%)
  • Energy (1.23%)
  • Utilities (1.47%)
  • Information Technology (1.81%)
  • Telecommunications (2.48%)
  • Consumer (5.72%)
  • Treasury (28.12%)
  • Gov-Related (25.99%)
  • Corporate (5.79%)
  • Securitised (1.04%)
  • Gold (6.00%)
2
  • Shares 53%
  • Bonds 42%
  • Gold: 5%
  • Financials (19.05%)
  • Materials (5.89%)
  • Industrials (4.70%)
  • Health Care (3.73%)
  • Energy (2.45%)
  • Utilities (1.85%)
  • Information Technology (3.30%)
  • Telecommunications (3.22%)
  • Consumer (8.81%)
  • Treasury (19.36%)
  • Gov-Related (17.89%)
  • Corporate (3.99%)
  • Securitized (0.71%)
  • Gold (5.00%)
3
  • Shares 69%
  • Bonds 27%
  • Gold: 4%
  • Financials (24.32%)
  • Materials (7.26%)
  • Industrials (6.14%)
  • Health Care (4.73%)
  • Energy (3.48%)
  • Utilities (2.40%)
  • Information Technology (4.80%)
  • Telecommunications (4.25%)
  • Consumer (11.62%)
  • Treasury (12.45%)
  • Gov-Related (11.50%)
  • Corporate (2.56%)
  • Securitised (0.46%)
  • Gold (4.00%)
4
  • Shares 82%
  • Bonds 14%
  • Gold: 4%
  • Financials (28.01%)
  • Materials (8.00%)
  • Industrials (7.43%)
  • Health Care (5.95%)
  • Energy (4.41%)
  • Utilities (2.84%)
  • Information Technology (6.22%)
  • Telecommunications (4.90%)
  • Consumer (14.22%)
  • Treasury (6.45%)
  • Gov-Related (5.96%)
  • Corporate (1.33%)
  • Securitised (0.24%)
  • Gold (4.00%)
5
  • Shares 91%
  • Bonds 5%
  • Gold: 4%
  • Financials (30.06%)
  • Materials (8.27%)
  • Industrials (8.28%)
  • Health Care (6.34%)
  • Energy (5.25%)
  • Utilities (3.18%)
  • Information Technology (8.03%)
  • Telecommunications (5.49%)
  • Consumer (16.08%)
  • Treasury (2.31%)
  • Gov-Related (2.13%)
  • Corporate (0.47%)
  • Securitized (0.09%)
  • Gold (4.00%)

Information adapted from QuietGrowth.

You can allocate segments of your savings for different risk profiles, for example a medium risk profile investment to build wealth for future tuition or a high risk profile for a comfortable retirement.

What fees does QuietGrowth charge?

QuietGrowth do not charge brokerage, advisory, platform registration or contract fees. However, it does charge an annual fee for the use of the automated trading platform which is calculated annually and deducted from your Trading Account each month. QuietGrowth offers a stepped fee structure.

  • Balances $2,000 to $10,000: No annual fee.
  • Balances $10,001 to $30,000: 0.6% p.a.
  • Balances $30,001 to $200,000: 0.5% p.a.
  • Balances $200,000 and above: 0.4% p.a.

What are the benefits of using QuietGrowth?

  • Save time. QuietGrowth can save you time by making investment decisions on your behalf. The less time you spend poring over charts and data, the more time you have for other forms of wealth creation.
  • Save money. QuietGrowth has a stepped fee structure. If you have less than $10,000 in assets under management, it can be cost effective to let a robo-advice trading platform trade for you rather than make individual trades yourself.
  • ETFs. QuietGrowth select ETFs in different asset classes based on your risk profile. Investing in ETFs is a low cost and simple way to gain exposure to an asset class and benchmark returns.
  • Risk profile. QuietGrowth use the Modern Portfolio Theory investment methodology. The company makes an estimate about your level of liquidity in retirement and asks you questions about your risk appetite to determine your current risk tolerance and subsequent exposure to equity ETFs.
  • Save on fees. The QuietGrowth Invite Program gives you a chance to save by waiving the annual fee on $5,000 of your and a friend’s account balances when you invite a friend to QuietGrowth.
  • Mobile application. QuietGrowth was the first robo advisor to launch a mobile app so that you can monitor your investments, update your statement of advice and get the latest news anywhere, anytime.

How do I get started with QuietGrowth?

Individuals, SMSFs and Trusts can trade using QuietGrowth. You will first need to pick the type of account you want (individual or SMSF, etc) and then provide the following information to determine your risk profile:

  • Your annual income
  • Your annual savings and your liabilities
  • The current value of your liquid assets and non-liquid assets
  • An estimate of whether your savings will increase or decrease in the future and what you would do if your value were to lose 15% in two weeks

Once you have your investment plan, you’re asked to complete your profile by entering personal details and contact information such as your email address, residential address, date of birth, mobile phone number and tax file number. You’ll need to confirm your email address, verify your identity and sign the QuietGrowth investment contracts before you can start investing.

Your questions about QuietGrowth answered

Does QuietGrowth receive compensation for selecting EFTs?

QuietGrowth selects ETFs based on your risk score and what’s best for you; it doesn’t get compensation from any funds for recommending investors.

Can I select my own ETFs to invest in?

No, QuietGrowth has opted for specific ETFs that it believes are the best choice for its users.

Does QuietGrowth support socially responsible investment choices?

No

Can I open multiple accounts?

Yes you can, although each account requires a minimum investment of $2,000

Where is my money held?

Your funds are held by QuietGrowth’s partner, Saxo Capital Markets (SCM), in a segregated client trust account operated by HSBC Bank Australia. Although client money is pooled together, SCM will not use the funds deposited by one client to meet the loss of another client.

To ensure compliance with Australian Client Money Rules, SCM calculates on a daily basis the value of all the clients’ funds. It then reconciles this with the funds available in the segregated client account.

What are my options for making a deposit?

  • Electronic funds transfer (ETF) using a BSB and account number provided to you
  • BPAY using a biller code and reference number provided to you
  • Direct debit using the form provided for you upon your request
  • A cheque payable to yourself deposited with QuietGrowth’s brokerage account. Unfortunately, no third party cheques are allowed.

How much can I withdraw?

You must withdraw a minimum of $5,000 each time while still maintaining a balance of $2,000. A minimum balance of $2,000 is required if you would like to keep your investment portfolio open.

Are my funds locked in?

You can withdraw your funds at any time, though we recommend you refer to the “How much can I withdraw?” section above.

Why is there spare cash in my account after my investments have been made?

There’s usually a small amount of uninvested cash left in your account for the following reasons:

  • QuietGrowth only purchases whole units of ETFs
  • Some cash is also reserved to cover fees
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