Annual
Report
2021
Annual Report for the year ended
30 June 2021
InvestSMART Group Limited
ABN 62 111 772 359
www.investsmart.com.au
1300 880 160
SECTION HEADING?? OUR VISION
To help all
Australians
grow and
protect their
wealth.
WHY?
Because we believe people
should be able to take
control of their financial
future. And it shouldn’t be
hard or expensive to do so.
HOW?
By providing innovative
tools, research and advice
that people can trust,
empowering them to make
better investing decisions.
Research & Advice
Investment
Advice
Investment
Portfolios
Investment
Tools
SECTION HEADING?? COMPANY ADVANTAGE
UNIQUE PRODUCTS & ECOSYSTEM
Our proprietary wealth platform operates within a
content and tools ecosystem
Platform
One Digital Platform
• Self-select, transact and manage multiple products and services
• Product & service delivery
• Administration and tax reporting
InvestSMART Professionally
Managed Account capped fees
Intelligent Investor Active ETFs –
ASX-listed variable fees
Investment
products
Diversified ETF portfolios
Australian Equity Income Fund (INIF)
Conservative, Balanced, Growth, High Growth
Australian Equity Growth Fund (IIGF)
Single Asset Class ETF portfolios
Interest Income, Hybrid Income, International
Equities, Property and Infrastructure
Ethical Share Fund (INES)
Intelligent Investor
Eureka Report
Bootcamp
Content and
tools
Ambassadors
Paul Clitheroe, AM
Chairman
Effie Zahos
Non-Executive
Director
Alan Kohler, AM
Editor-in-Chief
ANNUAL REPORT 2021
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Active Growth
Active Income
Active Ethical
Capped Fee/Passive
Free Active DatabaseTotal Member PortfoliosValue of assets held on Portfolio Manager ($bn)Jun-16 546,980 63,014 $12.61Jun-17 586,309 88,892 $20.09Jun-18 637,024 109,472 $26.46Jun-19 692,812 118,506 $28.56Jun-20 677,514 123,930 $30.56Jun-21 704,030 130,471 $31.65
(a)
(b)
(c)
Tel: +61 2 9251 4100
Fax: +61 2 9240 9821
www.bdo.com.au
Level 11, 1 Margaret St
Sydney NSW 2000
Australia
DECLARATATION OF INDEPENDENCE BY TIM AMAN TO THE DIRECTORS OF INVESTSMART GROUP
LIMITED
As lead auditor of InvestSMART Group Limited for the year ended 30 June 2021, I declare that, to the
best of my knowledge and belief, there have been:
1. No contraventions of the auditor independence requirements of the Corporations Act 2001 in
relation to the audit; and
2. No contraventions of any applicable code of professional conduct in relation to the audit.
This declaration is in respect of InvestSMART Group Limited and the entities it controlled during the
period.
Tim Aman
Director
BDO Audit Pty Ltd
Sydney
25 August 2021
BDO Audit Pty Ltd ABN 33 134 022 870 is a member of a national association of independent entities which are all members of BDO
Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit Pty Ltd and BDO Australia Ltd are members
of BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent
member firms. Liability limited by a scheme approved under Professional Standards Legislation.
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Tel: +61 2 9251 4100
Fax: +61 2 9240 9821
www.bdo.com.au
Level 11, 1 Margaret St
Sydney NSW 2000
Australia
INDEPENDENT AUDITOR'S REPORT
To the members of InvestSMART Group Limited
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of InvestSMART Group Limited (the Company) and its subsidiaries
(the Group), which comprises the consolidated statement of financial position as at 30 June 2021, the
consolidated statement of comprehensive income, the consolidated statement of changes in equity and
the consolidated statement of cash flows for the year then ended, and notes to the financial report,
including a summary of significant accounting policies and the directors’ declaration.
In our opinion the accompanying financial report of the Group, is in accordance with the Corporations
Act 2001, including:
(i)
Giving a true and fair view of the Group’s financial position as at 30 June 2021 and of its
financial performance for the year ended on that date; and
(ii)
Complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
those standards are further described in the Auditor’s responsibilities for the audit of the Financial
Report section of our report. We are independent of the Group in accordance with the Corporations
Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s
APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code)
that are relevant to our audit of the financial report in Australia. We have also fulfilled our other
ethical responsibilities in accordance with the Code.
We confirm that the independence declaration required by the Corporations Act 2001, which has been
given to the directors of the Company, would be in the same terms if given to the directors as at the
time of this auditor’s report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
BDO Audit Pty Ltd ABN 33 134 022 870 is a member of a national association of independent entities which are all members of BDO
Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit Pty Ltd and BDO Australia Ltd are members of
BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member
firms. Liability limited by a scheme approved under Professional Standards Legislation.
49
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in
our audit of the financial report of the current period. These matters were addressed in the context of
our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide
a separate opinion on these matters.
Valuation of Financial Assets Held at Fair Value
Key audit matter
How the matter was addressed in our audit
Note 5 to the financial report discloses the
Group's investment in unlisted securities and call
option totalling to $3,185,701 (2020: $2,179,293).
These comprise three holdings in companies in
the financial technology sector and a call option
to purchase shares of an unlisted company. The
investments and call option are measured within
level 3 of the fair value hierarchy as defined in
AASB 13 Fair Value Measurement.
The valuation of these investments is a key audit
matter due to the value of the assets as well as
the presence of significant unobservable inputs
into their valuation.
Our audit procedures included, amongst others:
Through independent valuation
specialist, assessed the appropriateness
of the valuation model, discount rates
and reasonableness of the fair values;
Agreed inputs such as purchase price
and last traded price, stock and exercise
prices to observable external sources
and internal documents;
Assessed the volatility and discount
rates used by reviewing the relevance of
comparative entities;
Performed sensitivity analysis to assess
the potential impact of change in
assumptions and found that assumptions
used by management where at a
reasonable range;
Compared consistency in the valuation
techniques applied in previous reporting
periods; and
Ensured the adequacy of the disclosures
relating to the investments within the
financial report and within Australian
Accounting Standards.
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Valuation of Share-based Payments
Key audit matter
How the matter was addressed in our audit
Note 14 to the financial report discloses
modification of the share-based payment plan of
the Group during the period. The Group
recognised during the year employee benefits
expense in relation to the share-based payments
of $215,165 (2020: $55,865).
The valuation of the share-based payments as a
result of the modification is a key audit matter
due to the complexity in the accounting
treatment and the degree of judgement and
estimation in the inputs for the fair value of the
new plan.
Our audit procedures included, amongst others:
Engaged the BDO valuation specialist to
assess the appropriateness of the
valuation technique, the calculation and
the assumptions and inputs used;
Reviewed the appropriateness of the
accounting treatment in accordance
with AASB 2 Share-based Payments;
Reviewed minutes of meetings and
Group announcements to ensure
completeness of information considered
in the calculations;
Verified instruments to supporting
agreements and contracts, where
available; and
Ensured the adequacy of the disclosures
relating to the share-based payments
within the financial report and within
Australian Accounting Standards.
Other information
The directors are responsible for the other information. The other information comprises the
information in the Group’s annual report for the year ended 30 June 2021, but does not include the
financial report and the auditor’s report thereon.
Our opinion on the financial report does not cover the other information and we do not express any
form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial
report or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this
other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the directors for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a
true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001
and for such internal control as the directors determine is necessary to enable the preparation of the
financial report that gives a true and fair view and is free from material misstatement, whether due to
fraud or error.
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In preparing the financial report, the directors are responsible for assessing the ability of the group to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the directors either intend to liquidate the Group or to cease
operations, or has no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an
audit conducted in accordance with the Australian Auditing Standards will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material
if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of this financial report.
A further description of our responsibilities for the audit of the financial report is located at the
Auditing and Assurance Standards Board website (http://www.auasb.gov.au/Home.aspx) at:
https://www.auasb.gov.au/admin/file/content102/c3/ar1_2020.pdf
This description forms part of our auditor’s report.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 5 to 10 of the directors’ report for the
year ended 30 June 2021.
In our opinion, the Remuneration Report of InvestSMART Group Limited, for the year ended 30 June
2021, complies with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the
Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our responsibility
is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with
Australian Auditing Standards.
BDO Audit Pty Ltd
Tim Aman
Director
Sydney, 25 August 2021
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ANNUAL REPORT 2020SECTION HEADING?? www.investsmart.com.au
1300 880 160
SECTION HEADING??