Commonwealth Private Wealth Offer

About our services

This document provides information about the Commonwealth Private wealth offering, provided by Commonwealth Private Ltd ABN 30 125 238 039 AFSL 314018 (‘Commonwealth Private’, ‘CPL’, ‘we’, ‘us’, ‘our’). It also includes information about the Commonwealth Private banking offering, provided by the Commonwealth Bank of Australia ABN 48 123 123 124, AFSL and Australian credit licence 234945 (‘CBA’).

If you apply to invest through the Commonwealth Private Wealth Service, you will receive a separate Offer Document containing terms and conditions which form part of the contract between you and Commonwealth Private.

Wholesale clients

Commonwealth Private’s Wealth offer is available to persons who meet the requirements of a ‘wholesale client’ under the Corporations Act 2001 (Cth). You may be classified as a wholesale client (referred to in this document as a ‘wholesale investor’) if you satisfy one or more of the following criteria set by CPL:

a. You have provided us with a certificate, given within the past two years by a qualified accountant, which states that you have net assets of at least $2.5 million or had a gross income of at least $250,000 for each of the last two years;

b. You are a company or corporate trustee that is controlled by a person who holds a current certificate confirming they meet the assets or income test described in (a) above;

c. You are a trust that is controlled by individual trustees who each hold a certificate confirming they meet the assets or income test described in a) above.

At our discretion, we may accept clients who satisfy another category of wholesale investor under the Corporations Act 2001 (Cth).

Residency status

The Commonwealth Private Wealth offer is only available to Australian tax residents, and the services provided by CPL can generally only be provided when the wholesale investor is physically located in Australia to receive the service.

Any person coming into possession of this document in jurisdictions outside Australia should seek legal advice and observe any restrictions under applicable law. Any failure to observe such restrictions may constitute a violation of applicable law. Minors can only invest through a trustee who is at least 18 years of age.

Our relationship with the Commonwealth Bank Group

Commonwealth Private is a wholly-owned but not guaranteed subsidiary of the Commonwealth Bank of Australia ABN 48 123 123 124 and is associated with other Commonwealth Bank Group companies. The Commonwealth Bank of Australia and its subsidiaries do not guarantee or in any way stand behind the performance of or the repayment of capital by Commonwealth Private’s Wealth offer or investments made through Commonwealth Private’s Wealth offer.

Investments through Commonwealth Private’s Wealth offer do not represent deposits or other liabilities of the Commonwealth Bank of Australia or its subsidiaries and investment-type products are subject to investment risk, including possible delays in repayment, and loss of income and principal invested.

Introducing Commonwealth Private

We explore what success means to you, then help you achieve it.

Commonwealth Private provides a range of private banking services to successful Australians. Our wholesale clients also enjoy bespoke financial advice and investment solutions tailored to their specific circumstances.

With deep experience supporting some of Australia’s most successful individuals and family offices, we’re committed to managing and advising on your financial affairs so you can build on your personal success.

We believe in the power of connection. We’ll work closely with you to gain a deep understanding of your aspirations, so we can provide you with tailored investment opportunities and curated market intelligence to guide your financial journey. We can also help you leave a powerful legacy, by securing your family’s future or creating a philanthropic trust.

What’s more, all our services are supported by innovative technology solutions and full-service private banking capabilities.

Commonwealth Private’s wholesale clients benefit from a range of services and features designed to optimise their investments. These include:

Asset allocation

Integrated portfolios across asset classes

Direct equity portfolios

Corporate actions management

Hedging and protection strategies

Gearing strategies

Other investment opportunities such as IPOs, capital raisings, equity placements, structured and alternative investments.

Investment adviceGrow and protect your wealth with bespoke investment strategies curated by your Private Wealth team

Portfolio managementMake key financial decisions with confidence, thanks to our streamlined portfolio administration and real-time reporting

Investment opportunitiesTake advantage of wholesale investment opportunities not available to retail investors

Securities advice and executionAccess a range of securities advice and execution-only services

Knowledge buildingBuild your investment expertise with our monthly market commentary, quarterly investment reports, live webcasts and events

Innovation and thought leadershipExperience our innovative approach to investment strategies and dynamic asset allocation, which enables us to seek out value and limit your risk exposure

Personalised serviceBenefit from regular meetings with your Private Wealth team to discuss your financial position and strategy

Private bankingEnjoy a full range of private banking services and an unrivalled digital banking experience

Access to CommSec OneDiscover exclusive trading benefits and get dedicated support in our program for active, self-directed investors

Unrivalled supportOur team-based approach to providing advice means a member of the team is always available when you need us

How we support your success

Our wholesale advisory offer

An exclusive advice offering, designed for highly affluent Australians with complex wealth needs.

Available to eligible Commonwealth Private clients, our wholesale offer combines tailored investment advice with select investment opportunities.

As a wholesale client, you’ll have access to your own Private Wealth team. These experienced advice professionals will help you explore new opportunities and achieve financial success for you and your family. Working closely with you and your Private Banker, your Private Wealth team is supported by a range of in-house experts who will anticipate your needs and design appropriate solutions.

At Commonwealth Private, we take a purposeful, decisive approach to investing. By drawing on the insights of our investment experts, we focus on generating real value for our clients by continually evaluating risk versus return. Every personal advice decision we make is also based on a deep understanding of your specific needs, allowing us to make deliberate, confident and timely decisions to help grow and secure your wealth.

Leveraging

Commonwealth Bank Global Markets and Economic Research

External Research: Morningstar, Bloomberg, Goldman Sachs

Domestic and International Fund Managers

Private Banker

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Investment CommitteeReview and monitor asset allocation and portfolio performance, develop a robust risk strategy.

Investment and Research TeamPortfolio managers made up of investment strategists, analysts and specialists in managed funds and equities.

Advice Operations and Advice DeliveryEnabling real-time access to your portfolio, and ensuring our advice complies with regulatory requirements.

Your Private Wealth team

Behind every successful person is a team of passionate, dedicated specialists.

1 As at 30 June 2020, Commonwealth Private’s Core Equity Portfolio outperformed the ASX200 benchmark at 1, 2, 3, 5 and 10 years by 5.42%, 7.26%, 5.14%, 2.25% and 1.36% respectively.

As a Commonwealth Private client, you’ll benefit from personalised support from a range of experts. Each of our Private Wealth teams supports a relatively small portfolio of clients, which ensures we’re available when you need us, can anticipate your needs and design solutions specifically for you.

Your Private Wealth team will construct, review and manage your portfolio and provide ongoing advice on your investments. Each team includes a Private Wealth Associate, who will administer your portfolio and can answer any day-to-day queries you may have. The team also includes a Private Wealth Manager and Private Wealth Director – senior advice professionals with extensive experience.

Your Private Banker will manage your banking needs – from monitoring your cashflow to ensuring you secure competitive rates on lending, term deposits and foreign exchange

services. You’ll also be supported by a Private Bank Associate and Analyst, who will administer your transactional banking and answer your queries over the phone.

Our investment and advisory service specialists are best-in-class, as demonstrated by their history of strong performance across asset classes1. They analyse the macro environment to provide insights that underpin our model portfolios and individual investment decisions, as well as leveraging the intellectual property and research capabilities of external research partners.

Commonwealth Private also makes the most of the vast network of resources across the entire Commonwealth Bank Group. This enables our clients to invest in domestic and international securities, institutional-type investments, global equity markets and funds across all asset classes.

Leveraging

Commonwealth Bank Global Markets and Economic Research

External Research: Morningstar, Bloomberg, Goldman Sachs

Domestic and International Fund Managers

Private Banker

Private WealthAssociates

Private WealthManager

Private WealthDirector

Private BankAssociates &

AnalystsSupported by

Adv

isor

y cl

ient

s

Investment CommitteeReview and monitor asset allocation and portfolio performance, develop a robust risk strategy.

Investment and Research TeamPortfolio managers made up of investment strategists, analysts and specialists in managed funds and equities.

Advice Operations and Advice DeliveryEnabling real-time access to your portfolio, and ensuring our advice complies with regulatory requirements.

Investment approach

Delivering decisive and purposeful advice with investment opportunities matched to your personal aspirations.

At Commonwealth Private, we choose investments that will create risk-controlled, diversified portfolios.

Our approachOur investment approach is disciplined and rigorous, as well as being dependable, durable and repeatable. Your Private Wealth Team will explain our Core Investment offering and work with you to understand whether one of our diversified model portfolios suits your personal circumstances. Each of our portfolios, from Conservative through to High-Growth, includes our top-performing Core Equity Portfolio, comprised of the highest quality Australian shares. Our Dynamic Asset Allocation gives us the flexibility to review and update our House Views across all asset classes, taking advantage of changing market conditions and values.

Within each asset class, we determine the types of exposures that will work together to provide each client’s optimal mix of risk and return. We then seek investments that also have those characteristics.

Clients benefit from our institutional approach to investing, as it provides more opportunities than are typically available to retail investors, but with smaller teams and personalised services. Our teams are ready and able to quickly adapt to major market movements and any changes in your circumstances, so you can make the most of every investment opportunity.

Our philosophy and principles Our investment philosophy is to provide you with the highest quality financial investment products, coupled with outstanding service. As a high-net-wealth client, you will benefit from our client-focused approach, bespoke investment solutions and our methodology for investing across every asset class. Our investment philosophy is based on the following five components:

Strategic asset allocation

Dynamic asset allocation

House view on direct equities

House view on leading managed funds

Implementation and portfolio management

Use asset allocation to drive returns

Diversify intelligently across quality assets

Understand investor psychology

Remember that markets are effective but not always efficient

Take a long-term perspective

Employ a dynamic approach to risk management

Use products and securities in the right context

Control trading costs, fees and taxes

We also follow eight investment principles to guide our decision-making and investment selection process. These principles ensure a disciplined approach and a robust framework for managing your investments. They also keep us alert to the biases that can influence market dynamics and investment behaviour. They are:

How we build your portfolio

With expertise spanning Australian and international equity markets, fixed income, alternatives, property, managed investments and specialised opportunities, our Investment and Research Team provides a unique view on the markets, tailored to the needs of Commonwealth Private clients. Our Investment Committee provides governance and oversight on these views.

While we remain focused on the long term, we regularly monitor and review our house views in light of current market conditions and our assessment of the future outlook. This puts us in good stead to make decisions where we see potential value, or to limit your exposure where we see heightened risk.

Fees and chargesAt Commonwealth Private, we charge advisory fees based on a percentage of Funds Under Management, subject to a minimum annual fee. Your Private Wealth team will explain our fee structure and tiering approach in greater detail at the start of the advice process, once they understand your personal circumstances.

All fees and charges will be disclosed and agreed with you before your Commonwealth Private Wealth team prepares or implements any advice.

1 We explore your lifestyle, financial and business aspirations

2 We develop insights into your investment preferences and experience

3 We draw on the expertise of specialists from Australia’s largest financial institution and our global partners

4 We tailor a personalised wealth management plan, bringing together a diverse range of opportunities

5 We implement and manage your solution in consultation with you, keeping you informed about emerging risks and opportunities

Take your success to the next level

Commonwealth Private understands that your vision of success is deeply personal. Commonwealth Private can provide the guidance and expertise you need to achieve your own vision of success – and to celebrate that success with the people who matter to you.

Your success is the ultimate measure of ours. We look forward to finding out how we can help you achieve success in every aspect of your wealth journey.

For a confidential discussion about our service, please contact us on:

1300 362 081

commbank.com.au/commonwealthprivate

Things you should know: Commonwealth Private Limited ABN 30 125 238 039 AFSL 314018, is a wholly owned, but non-guaranteed subsidiary of the Commonwealth Bank of Australia ABN 48 123 123 124, AFSL and Australian credit licence 234945. Commonwealth Private’s services are provided by a team consisting of a Private Banker who is a representative of Commonwealth Bank, and Private Wealth Managers who are representatives of Commonwealth Private Limited.