Annual Report for the year ended
30 June 2023
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 and service delivery
• Administration and tax reporting
Investment
product
InvestSMART
Professionally managed accounts
Capped fees
Intelligent Investor
Active ETFs – ASX-listed
Variable fees
Eureka
Variable fees
• Australian Equity Income Fund (INIF)
• Australian Equity Growth Fund
(IIGF)
• Ethical Share Fund (INES)
• Select Value incl. International (IISV)
Content
• Eureka Asset-backed Loan Fund
Content
Diversified ETF portfolios
• Conservative
• Balanced
• Growth
• Ethical Growth
• High Growth
Single asset class ETF portfolios
• International Equities
• Interest Income
• Property and Infrastructure
• Hybrid Income
Lending
service
Fundlater
Backed by Eureka Asset-backed Loan Fund
Fundlater lending service available for our
diversified ETF portfolios with a maximum
loan value of $6,000 per user.
Calculators
Bootcamp
Tools
Ambassadors
Paul Clitheroe, AM
Chairman
Effie Zahos
Non-Executive
Director
Alan Kohler, AM
Editor-in-Chief
ANNUAL REPORT 2023
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400
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U
F
300
200
100
0
Capped Fee/Passive
Active Income
Active Ethical
Active Growth
Active Select Value (International)
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Tel: +61 2 9251 4100
Fax: +61 2 9240 9821
www.bdo.com.au
Level 11, 1 Margaret Street
Sydney NSW 2000
Australia
DECLARATION 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 2023, 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
year.
Tim Aman
Director
BDO Audit Pty Ltd
Sydney
16 August 2023
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.
19 The above Consolidated Statement of Comprehensive Income should be read in conjunction with the accompanying notes.
The above Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes.
The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes.
The above Consolidated Statement of Cash flows should be read in conjunction with the accompanying notes.
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Tel: +61 2 9251 4100
Fax: +61 2 9240 9821
www.bdo.com.au
Level 11, 1 Margaret Street
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 2023, 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 2023 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.
48 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 share-based payments
Key audit matter
How the matter was addressed in our audit
Note 14 to the financial report discloses an
employee benefits expense in relation to share-
based payments. The valuation of the share-
based payments is a key audit matter due to the
complexity in applying AASB 2 Share-based
Payment and the degree of judgement and
estimation in the inputs for the fair value of the
options.
To address the matter, our audit procedures
included, amongst others:
(cid:127)
(cid:127)
(cid:127)
(cid:127)
Reviewed the appropriateness of the
accounting treatment in accordance
with AASB 2;
Reviewed minutes of meetings and
Group announcements to ensure
completeness of information considered
in the calculations;
Verified a sample of instruments to
supporting agreements and contracts;
and
Assessed the adequacy of the disclosures
in accordance with Australian
Accounting Standards.
49 Loan transfer and derecognition
Key audit matter
How the matter was addressed in our audit
Note 6 to the financial report discloses transfer
and derecognition of Fundlater loans during the
year under a Loan Acquisition and Management
Agreement.
This is considered a key audit matter due to the
significance of the loan transferred and the
accounting treatment for the loan derecognition.
To address the matter, our audit procedures
included, amongst others:
(cid:127)
(cid:127)
(cid:127)
(cid:127)
Reviewed the terms and conditions of
the Loan Acquisition and Management
Agreement and the Fundlater loans;
Agreed the value of transferred loans to
supporting documentation;
Evaluated the impact of the loan
transfer to the accounting treatment of
the loans in accordance with the
Australian Accounting Standards; and
Assessed the adequacy of the disclosures
in accordance with 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 2023, 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.
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.
50 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:
http://www.auasb.gov.au/auditors_responsibilities/ar3.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 12 to 17 of the directors’ report for the
year ended 30 June 2023
In our opinion, the Remuneration Report of InvestSMART Group Limited, for the year ended
30 June 2023, 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, 16 August 2023
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www.investsmart.com.au
1300 880 160
SECTION HEADING??