Stockmarket investors urged: don’t cop unnecessary costs

SYDNEY, 7 December 2011: In the face of continuing volatility and meagre – or non-existent –returns in local and international share markets, many do-it-yourself (DIY) share market investors are seeking to cut unnecessary investment expenses.

“Share investors have had a rocky ride of late and in a low return environment, it is more important than ever to contain costs,” said Andrew Bird, Executive Director of online share portfolio management service Sharesight.

“Many investors understand the wisdom of staying in the market, but that doesn’t mean they have to cop additional, unnecessary expenses in the form of administration or portfolio management fees, or because they lack the sort of timely performance information they need to adjust their allocations.”

Mr Bird made the comments as he launched a new, free portfolio administration and management service for investors with holdings in up to 10 companies. This accounts for the majority of individual Australian share investors.¹

According to Mr Bird, the service was developed to assist DIY investors and holders of SMSFs to improve the management of their portfolios and save costs. Mr Bird said the service is also aimed at those currently using a full-service broker or financial planner to manage their equity investments but who are finding the ongoing fees a drain.

“What we are offering is a solution that acknowledges the ‘new normal’ of more volatile and uncertain times, and the pressing need for investors to make efficiencies where they do have control,” said Mr Bird. “These investors are looking for greater visibility of their portfolios and clearer, more up-to-date information on performance to help them make investment decisions. They also need a service that will keep them up-to-date when it comes to taxation reporting. And that’s what the Sharesight Free Plan gives them.

“In providing the management functionality these DIY investors need, the Free Plan can save time, money, mistakes and lost opportunities. Its reporting and administrative capabilities are comprehensive and well in line with what a broker, planner or accountant would provide to clients with portfolios of this size – for absolutely no cost to the user,” said Mr Bird.

For holdings in up to 10 ASX-listed or overseas companies, the Sharesight Free Plan provides:

• Automatically updated performance information on both total portfolio and the
  performance of each individual stock
• Automatic recording of all transactions and dividends received, including franking credits
  and withholding tax
• Tax and CGT reporting at a few clicks of the mouse
• Diversity reporting by investment type, industry, market and country
• Access through the cloud anytime, anywhere

(1) 80% of individual Australian sharemarket investors have 10 or fewer share holdings, according to the ASX Share Ownership Study, 2008 (latest available data)