Clover.com.au Review
- Low management fees.
- Diverted portfolio which reduces risk.
- 2-factor authentication is supported.
- Exposure to markets provides increased opportunities.
- Low entry for a managed account service.
- Cryptocurrencies are not listed for investment.
- Geographical restrictions exist.
- Customer support channels are restrictive.
Clover is an Australian managed portfolio investment company which offers clients the opportunity to invest in a range of market instruments using a managed portfolio system.
Clover.com.au offers its clients a portfolio diversification investment strategy which is based on investment in Exchange Traded Funds (ETFs). Clover’s ETF investment strategy is based on the Modern Portfolio Theory, which provides returns optimization at each risk level using diversified investment vehicles.
The ETF investments offered in Clover’s portfolios are specially selected in such a manner as to provide good diversification for the lowest management fees. Due to the tax-resident requirements for such investments, Clover.com.au only opens its investment status to Australian residents and Australian citizens.
Exchange Platform
How does investing on Clover work with respect to the trading exchange?
Clover operates the investments of its clients on OpenMarkets, a local brokerage firm which offers the assets on which Clover makes ETF investments. OpenMarkets has a 3rd party authorization on all Clover’s client accounts. Whenever a client opens a Clover account, a brokerage account is also opened on OpenMarkets.
Clover.com.au maintains investment control on its client accounts. Therefore, when a decision is made to invest in certain assets to form the ETF basket, an instruction is sent to OpenMarkets to withdraw certain funds from the clients’ trading accounts to fund their participation in the ETF basket. Therefore, investors with Clover do not need to personally trade their accounts.
Exchange Market
The ETF investment portfolio offered by Clover is a mixture of cash-based investments, global stocks and fixed income instruments such as bonds. Portfolios are occasionally rebalanced to ensure optimum returns on investment.
- Australian Stocks: The stocks that make up the local contribution to the ETF basket are the 200 listed companies on the ASX200, Australia’s stock exchange.
- Enhanced Cash: Cash-based investment such as deposit investments, term deposits & short-term securities in the money market.
- Fixed Income securities such as bonds issued by the Australian government and highly capitalized companies.
- Stocks in Global Developed Markets: Over 1,500 stocks of companies listed across the US, Europe & Japan.
Deposit and Withdrawals
Due to the fact that all cash belonging to Colver’s investors are invested, no free cash is available for instant withdrawals. Rather, a notification has to be sent to Clover about intention to withdraw the value of liquidated investments (full or partial). Clover will then sell the portfolio assets within 3-5 business days, and then credit the trader’s nominated payment channel accordingly.
- Payment channels include:
- Bank wire
- Credit/debit cards
A minimum cash balance of $2,500 must be left at all times, otherwise the account will have to be closed. The minimum investment amount is $2,500. This can be transferred at once or in smaller multiples.
In terms of fees, there are no withdrawal fees, and no hidden charges. Traders do not pay any brokerage or trading fees either. Clover covers the trading costs and only charges fees based on account balance.
- $2,500+ Fee: $5+ GST per month
- $10,000+ Fee: 0.65%+ GST per year
- $50,000+ Fee: 0.60%+ GST per year
- $100,000+ Fee: 0.55%+ GST per year
- $500,000+ Fee: 0.45%+ GST per year
Help and Support
In order to get customer support or help from the Clover team, you can contact them using the details that are shown below:
- Email: [email protected]
- Phone: 1300 001 557
- Physical Address: Level 3, 4-10 Bank Place, Melbourne 3000
There is also a live chat facility.
Clover.com.au also offers traders the opportunity to connect with the company on social media channels:
- Facebook (www.facebook.com.au)
- Twitter (Clover_au)
- Instagram (http://instagram.com.au)
Security and Fairness
The starting point of the security and fairness features on any broker starts with whether they are regulated or not. Clover.com.au is a regulated brokerage, and carries the Australian Financial Services License issued by ASIC (the Australian regulator), with license number 479416.
Regulation means that there is a central body with enforcement powers that can hold Clover.com.au accountable for how they handle clients’ funds.
Conclusion
For those who want to get involved in the lesser known investment vehicle known as ETFs, Clover.com.au provides a very good option for this. ETFs are by nature less risky forms of investments because of the spread of investment risk across several assets. Traders do not need to chase volatile instruments. Rather, Clover’s fund managers handle all investments on behalf of the traders using guidelines that are approved by regulators.
As a company that believes in socially responsible investment, Clover.com.au has provided quality service to its clients for a long time and there have been virtually no complaints about its services.
The only drawback with Clover is the restricted nature of its geographical coverage (open only to Australian citizens/residents). Nevertheless, Clover’s model is one which traders who are risk averse can follow with other services that mimic Clover’s product offering.
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