InvestSMART overhauls fee structure

Patrick Buncsi

4 March 2025

Direct-to-investor digital wealth and advice platform InvestSMART has announced several changes to its fee structure covering its extensive managed accounts offering, promising lower overall costs for the majority of its clients.

Announcing the changes to the Australian Securities Exchange (ASX) today, InvestSMART flagged an 11-basis point fee cut – down from 0.55% to 0.44% – across its professionally managed accounts (PMAs) line-up, which covers more than 3,000 accounts.

The fee cut, in force from 1 April, will be offset by the introduction of a 0.11% administration fee. This new charge will cover all buy-side brokerage costs, InvestSMART said, and ensure ongoing enhancements to its platform and investment tools.

The new revenue stream would ensure “a seamless and high-quality investing experience” for its clients, the firm said.

“By incorporating brokerage within our structure, we’re also making it cheaper for new accounts and rewarding investors for ongoing contributions to help them reach their financial goals sooner.”

The platform has also tweaked its “industry-first” fee cap, which will now apply at account balances of $200,000, increased from the previous $100,000 threshold. Once this new threshold is reached, the management fee will not exceed $880 per annum, up from $550 per annum.

InvestSMART, which touts its low-cost offering, said the new fee structure would result in lower overall fees for most of its clients.

“For others, costs may increase depending on portfolio size and trading activity,” the firm said.

“However, our approach remains the same – keeping fees low, providing direct ownership of shares, and supporting long-term investing without unnecessary costs.”

Founded in 2001, InvestSMART boasts just over 3,000 PMAs, leveraging exchange traded funds (ETFs), totalling more than $365 million in funds under management, and four active ASX-listed ETFs.