VUE | INVESTMENT STYLES

Tech Stars

1 YEAR RETURN

-16.44

1 MONTH RETURN

6.24

6 MONTH RETURN

-2.12

DIVIDEND YIELD

1.08

1 YEAR RETURN

-16.44

1 MONTH RETURN

6.24

6 MONTH RETURN

-2.12

DIVIDEND YIELD

1.08

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Portfolio Overview

SUMMARY

The Tech Stars share portfolio, known as a Vue, is a concentrated portfolio of ten shares comprising the ten largest technology companies in the U.S.

It features some of the most recognisable and iconic brands in the technology industry such as Google, Apple and Facebook.



BRANDS IN THIS VUE

Investment Strategy

STRATEGY

The investment strategy is to reflect the diverse impact of technology. The benefits of technology are being felt not just in consumers’ personal lives, but in productivity and revenue gains for businesses in areas including supply chain management, logistics, improved automation and manufacturing.

Further, Tech Stars gives you a stake in some iconic names that have the firepower to acquire up and coming new entrants and gain market share rapidly.

With record high cash balances, these companies can invest in innovative R&D projects (think Google’s moonshot projects) to continue growth momentum.

 

 



OBJECTIVE

The investment objective is to outperform the MSCI World Ex-Australia Index (Net/AUD) over a five-year investment horizon.

This Vue is intended as a long-term investment with low stock turnover. It is reviewed and rebalanced (if required) every quarter.

TIMEFRAME

3+ Years

Vue Metrics

VUE PERFORMANCE

INVESTOR SUITABILITY

The Tech Stars Vue may be suitable for investors who have an investment horizon of 3+ years, and a moderate to high risk tolerance.

MARKET CAP OF SHARES IN PORTFOLIO

The research team

With over 50 combined years’ experience in global equity markets, our investment committee use complex proprietary models to bring you the world’s best and most innovative companies.

Clay Carter

Head of Investment Committee


Clay's 30+ years of experience includes senior portfolio management roles at AMP, Legal and General Life of Australia, PM Capital, QBE Insurance and Perennial Investment Partners. He has developed alternative methods to traditional market analysis and portfolio management, was a key contributor to the Eureka Report, and regularly appears on CNBC Asia and Bloomberg TV.

1 | Identify Vue theme

We identify a global trend, issue or investment style that we believe makes for a compelling long-term investment story.

2 | Run quantitative model to create shortlist

We run our proprietary multi-factor share selection model to rank shares by attractiveness.

3 | Fundamental research to select shares

We conduct fundamental research to select the final 10 shares. We look at things like sustainable competitive advantage, earnings growth potential and trading multiples.

4 | Vue review and rebalance

Vues are reviewed and rebalanced (if required) quarterly or if necessitated by unexpected developments. Clients have discretion whether to implement recommended changes.

FEES

0.8%
Research fee
on market value
of the holdings
0.0%
Performance fee
Administration fee
Custody fee
Activity fee
Buy/sell spread

We offer a simple and competitive fee structure.

When investing in a Vue, you’ll be charged a flat 0.8% per annum research fee (calculated daily, charged monthly).

We do not charge any additional performance, administration, custody or activity fees. Buy/sell spreads do not apply either.

Normal trading costs will apply when buying and selling shares held within a Vue.

FAQ

Frequently Asked Questions

General Questions

What is HALO Global?
General Questions

What is HALO Global?

HALO Global is a equities research and execution solution that allows users to analyse and invest in over 35,000 shares and ETFs across 30 exchanges.

HALO Global has been designed by professional fund managers to help investors save time, find better opportunities and make smarter decisions for their portfolios.

Why should I use HALO Global?
General Questions

Why should I use HALO Global?

HALO Global has been designed by professional fund managers to help investors save time, find better opportunities and make smarter decisions for their portfolios.

If you are serious about improving your performance and growing your wealth, HALO Global can help.

 

Important:

Before making an investment decision, you should consider your personal circumstances, objectives and needs and seek a professional investment advice.

How can I trust HALO Global as an investment service provider?
General Questions

How can I trust HALO Global as an investment service provider?

HALO Global is offered by HALO Technologies Pty Ltd ABN 54 623 830 866 which is a Corporate Authorised Representative No 1261916 of Macrovue Pty Ltd ABN 98 600 022 679, the holder of an Australian Financial Services Licence No 484264. Please read our Financial Services Guide for further information. We are also one of the few Australian companies to be registered as a Qualified Intermediary with the IRS in the U.S.

We have strong governance procedures in place and the management team has several decades of experience with leading fund managers, brokerages, and investment banks. Please see our About Us page for more information.

Our Philosophy
General Questions

Our Philosophy

There are many great ideas out there. Finding discerning ways to turn those ideas into equity investments can be daunting when you have reams of data and information to wade through and limited access to professional analysis.

At HALO, we do the hard work for you. Our team is dedicated to constructing portfolios of 10 stocks each, called Vues, that give you exposure to a selected theme, while also allowing you the flexibility and control to fine-tune as you go.

We are targeting do-it-yourself investors looking for a new way to invest a portion of their savings and engaged in deciding how best to allocate their money. Our users demand the transparency and control that much of the superannuation industry doesn’t provide.

We are committed to looking beyond our own beautiful shores to opportunities in the world’s largest and most dynamic economies so that you don’t miss investing in the next chapter of China’s growth story or the U.S. recovery or the Internet of Things that’s reshaping our lives. The majority of our Vues are blind to borders, looking only for the stocks that best express a theme. So, not only are you diversified through multiple companies, you are also geographically diversified.

Come join us and explore a new world of ideas.

Open an Account

I am a US citizen/permanent resident. Can I open a trading account with HALO ?
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I am a US citizen/permanent resident. Can I open a trading account with HALO ?

Unfortunately, we cannot accept US or Canadian Citizens/Residents for this product.

Can I deposit foreign currency?
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Can I deposit foreign currency?

No. We only accept Australian Dollars. We are working on catering for USD, GBP and Euro deposits in the coming months.

Does HALO allow Position Transfers?
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Does HALO allow Position Transfers?

Can I transfer positions to/from my HALO account?
Absolutely! Most stocks can be transferred to your HALO account. You either hold stocks at a broker (broker-sponsored) such as CommSec or nabtrade, or the shares are controlled by the issuer (issuer-sponsored) and held via a share registry such as Boardroom (added this as that’s where HALO shares are held), Computershare or Link Market Services. There may be some exemptions such as micro-cap stocks. If you would like to initiate a transfer of your positions in or out of your account you can complete the forms below to and email it to us support@halo-technologies.com.

Alternatively, if you would like to discuss your options regarding a position transfer, please do not hesitate to contact us.

What is the process of a position transfer?
For issuer sponsored holdings we need an up-to-date holdings statement detailing the ticker, quantity of shares held, the registry and your SRN/HIN where applicable and a signed position transfer form which you can request from support@halo-technologies.com . We will then send this to our custodian and the positions will settle in your account.

For broker sponsored holdings you need to complete the same forms above detailing the stocks you wish to transfer, your account number at the sending broker (you will need to provide two if you hold domestic and international shares), your broker information including a contact email and your signature granting us permission to initiate the transfer. We will send this signed form to your current broker and to our custodian. Once our request matches with your broker's instructions the stocks will settle into your account.

How do I fund my account?
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How do I fund my account?

First, you will need to complete a trading account application.

To complete a transfer for Australian Dollars, you can request a deposit on trader.  We will provide you with the secure transfer details for HALO trust account. We will notify you via email when your funds are available for investing.

To complete a transfer for any other currency, please contact HALO Support. We don’t support other CCYs yet.

 

 

Do I need to be an Australian resident to open an account?
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Do I need to be an Australian resident to open an account?

Yes, you must be an Australian resident for tax purposes. The simplest way to think about this is whether you submit an Australian tax return?

The Australian Taxation Office provides more information if you have unique circumstances. The information can be found here: https://www.ato.gov.au/Individuals/International-tax-for-individuals/Work-out-your-tax-residency/

What types of accounts do you offer?
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What types of accounts do you offer?

We offer individual, joint, self-managed super fund (“SMSF”), company, and trust accounts.

How can I apply for a trading account and begin trading?
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How can I apply for a trading account and begin trading?

The process is fully online. All you need to do is fill in our online form with your personal information. We need to collect this in order to meet our legal obligations for anti-money laundering regulations.

It only takes about 5 minutes to complete the application for an individual account and you can always save and come back if you don’t have all the information on you.

We will email you as soon as your account is ready to trade.

Can I trial HALO Global?
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Can I trial HALO Global?

Absolutely. Head to our website to activate your free 7-day trial of HALO Global. You will get access to all features and data sets for the trial period.

At the end of the trial, you can still access your HALO Trading account which allows you to invest in over 35,000 shares and ETFs. 

A HALO Trading account is free to create an offers competitive brokerage for global equities.

Quick Guide to Setting up a Trust Account on HALO
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Quick Guide to Setting up a Trust Account on HALO

A step-by-step guide to setting up your HALO Trading Account as a Trust Account.

Part A - Setting up application login details

Step 1: Go to https://app.halo-technologies.com/login

Step 2: Fill out the fields it requires. Note: for your password it needs to be a minimum of 8 characters, one capital and one number.

Step 3: Click ‘Join HALO’. An email will be sent to you title "Trading Application Approval required". Click on "Finalise Trading Account application".

Step 4: You will be prompted to login using the username and password provided. Please re-set your password and log out.

Step 5: Login to your HALO account with your username and new password.

Step 6: Click on ‘Apply Now’ to navigate to Trading Application. You can also click ‘Complete a trading application’. 

Part B - Setting up as a Trust Account

Scroll down and select the type of trust:

  1. Family,
  2. Charity,
  3. Minor Account,
  4. Pension,
  5. Professional Society,
  6. Testamentary Trust.
  1. Select Trustee Type: Individual or Corporate.
  2. Select the number of applicants
    1. minimum of two or the number specified on the trust deed.
  3. Specify whether there are any trustees who are not applicants.
  4. Specify if there are any beneficiaries of the trust who are not applicants.
  5. Specify whether there are any additional controllers who are not
    applicants.
    1. This includes unit holders, and appointer or settlor of the trust.
    2. Controllers can directly or indirectly control the decisions of the trust.
  6. Provide the details of the trust.
    1. An individual trustee will just require the name of the trust e.g. Sunshine Super Fund, the tax file number of the trust and the ABN of the trust.
    2. A corporate trustee will require:
      1. the details of the trust (see just above) along with details of the trustee.
      2. An example of the name of the trustee is ‘Parasol Group Pty Ltd’,
      3. you will also need to provide the ACN of the corporate trustee.
      4. And the business address of the corporate trustee. These details can be found on your trust deed.
  7. Complete the acknowledgement declaring that the trust/entity is a non-US entity and sign your name as a digital signature.
  8. Scroll down to ‘Applicant Details’.
  9. Fill out your personal details.
  10. When you reach the Country of Citizenship/Birth section remember to click the country which will appear in the drop-down menu.
  11. HALO will ask you for your primary source of funds and primary source of wealth to meet regulatory requirements. If you are retired these will likely be ‘Investment Income’. If you are still working, it will likely be ‘Income from employment’.
  12. Complete steps 11-13 for any additional applicants.
  13. Accept the acknowledgements at the end of the page and sign with your name as a digital signature. Given that HALO is an international investing platform and will be used to access US markets through Interactive Brokers they must confirm that you’re not a US resident or taxpayer, or a resident of a country currently sanctioned by the US (e.g. North Korea).
  14. Once all details are complete scroll down to identity verification.
  15. Once you reach the identity verification page you can begin the process by
  16. Clicking the green button marked ‘Start Verification’.
    1. If automatic verification is successful it will change to ‘verified’.
    2. If not it may ask you for additional documents that it deems to be required (e.g. electoral roll details, utility bill, driver’s license details).
  17. Complete identity verification (steps 14) for any additional applicants.
  18. Once the original button says ‘verified’ you can submit your application for

approval by clicking ‘submit application’.

If you have any questions, please contact Client Services on 1300 720 292. 

Guide to help you complete your application form for an Individual Trading Account.
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Guide to help you complete your application form for an Individual Trading Account.

Part A - Setting up application login details

Step 1: Go to https://app.halo-technologies.com/login

Step 2: Fill out the fields it requires. Note: for your password it needs to be a minimum of 8 characters, one capital and one number.

Step 3: Click ‘Join HALO’. An email will be sent to you title "Trading Application Approval required". Click on "Finalise Trading Account application".

Step 4: You will be prompted to login using the username and password provided. Please re-set your password and log out.

Step 5: Login to your HALO account with your username and new password.

Step 6: Click on ‘Apply Now’ to navigate to Trading Application. You can also click ‘Complete a trading application’.

Part B - Completing your Individual Account application

Step 1:

  1. Select Individual Account.
  2. Scroll down to applicant details.
  3. Fill out your personal details including residential address.
  4. Residential address should be on ID documents and cannot be PO box.
  5. When you reach the Country of Citizenship/Birth section remember to click the country which will appear in the drop-down menu like this:
  6. In order to meet regulatory requirements, you will need to nominate: a. your industry (e.g. retired; retail), b. primary source of Funds (e.g. employment income; investment income if retired) c. Primary source of Wealth This is required by law.
  7. Nominate your tax status and provide your TFN.
  8. Accept the acknowledgements at the end of the page and sign with your name as a digital signature. Given that HALO is an international investing platform and will be used to access US markets through Interactive Brokers they must confirm that you are not a US resident or taxpayer, or a resident of a country currently sanctioned by the US (e.g. North Korea).
  9. Once you reach the identity verification page you can begin the process by clicking the green button marked ‘Start Verification’.
    1. If automatic verification is successful it will change to ‘verified’.
    2. If not, it may ask you for additional documents that it deems to be required (e.g. electoral roll details, utility bill, driver’s license details).
  10. Once the original button says ‘verified’ you can submit your application for approval by clicking ‘submit application’.

Your application will then be sent off for approval which will take approx. 1 business day.

 

Quick Guide to setting up an SMSF Account on HALO.
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Quick Guide to setting up an SMSF Account on HALO.

Part A - Setting up application login details

Step 1: Go to https://app.halo-technologies.com/login

Step 2: Fill out the fields it requires. Note: for your password it needs to be a minimum of 8 characters, one capital and one number.

Step 3: Click ‘Join HALO’. An email will be sent to you title "Trading Application Approval required". Click on "Finalise Trading Account application".

Step 4: You will be prompted to login using the username and password provided. Please re-set your password and log out.

Step 5: Login to your HALO account with your username and new password.

Step 6: Click on ‘Apply Now’ to navigate to Trading Application. You can also click ‘Complete a trading application’.

Part B - Completing your SMSF Account application

Step 1:

  1. Select SMSF Account
  2. Select the type of trustee – Individual or Corporate
  3. Select the number of applicants – minimum of two or the number specified on the trust deed.
  4. Specify whether there are any trustees who are not applicants.
  5. Specify if there are any beneficiaries of the trust who are not applicants.
  6. Specify whether there are any additional controllers who are not applicants.
    1. This includes unit holders, and appointer or settler of the trust.
    2. Controllers can directly or indirectly control the decisions of the trust.
  7. Provide the details of the trust.
    1. Individual trustee will just require:
    2. Legal name of the trust
    3. ABN
    4. A corporate trustee will require:
      1. the details of the trust (see just above) along with details of the trustee.
      2. An example of the name of the trust is ‘Parasol Group Pty Ltd’,
      3. you will also need to provide the ACN of the corporate trustee.
      4. And the business address of the corporate trustee. These details can be found on your trust deed.
  8. Complete the acknowledgement declaring that the trust/entity is a non-US entity.
  9. Declare whether the company earned more than 50% of its income from investment sources or held more than 50% in shares. For an SMSF this is likely ‘yes’
  10. Scroll down to ‘Applicant Details’.
  11. Fill out your personal details.
  12. When you reach the Country of Citizenship/Birth section remember to click the country which will appear in the drop-down menu like this:
  13. In order to meet regulatory requirements, you will need to nominate:
    1. . your industry (e.g. retired; retail),

    2. primary source of Funds (e.g. employment income; investment income if retired)

    3. Primary source of Wealth

  14. Nominate your tax status and provide your TFN
  15. Complete steps 11-15 for any other applicants.

  16. Accept the acknowledgements at the end of the page and sign with your name as a digital signature. Given that HALO is an international investing platform and will be used to access US markets through Interactive Brokers they must confirm that you are not a US resident or taxpayer, or a resident of a country currently sanctioned by the US (e.g. North Korea).

  17. Once you reach the identity verification page you can begin the process by clicking the green button marked ‘Start Verification’.
  18. If automatic verification is successful it will change to ‘verified’.
  19. If not, it may ask you for additional documents that it deems to be required (e.g. electoral roll details, utility bill, driver’s license details).
  20. Once the original button says ‘verified’ you can submit your application for approval by clicking ‘submit application’.

If you would like further assistance, please contact client services on 1300 720 292.

 

Quick Guide to setting up a Company Account on HALO.
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Quick Guide to setting up a Company Account on HALO.

Step by step guide to setting up your HALO Trading account as a Company account.

Part A - Setting up application login details

Step 1: Go to https://app.halo-technologies.com/login

Step 2: Fill out the fields it requires. Note: for your password it needs to be a minimum of 8 characters, one capital and one number.

Step 3: Click ‘Join HALO’. An email will be sent to you title "Trading Application Approval required". Click on "Finalise Trading Account application".

Step 4: You will be prompted to login using the username and password provided. Please re-set your password and log out.

Step 5: Login to your HALO account with your username and new password.

Step 6: Click on ‘Apply Now’ to navigate to Trading Application. You can also click ‘Complete a trading application’.

Part B - Setting up as a Company Account

  1. Select Company Account.
  1. Select the number of applicants – a minimum of two directors, a director & a company Secretary

or the Sole Director where appropriate.

  1. Select whether there are any additional directors of the company who are not applicants.
  2. Specify where there are any beneficial shareholders who are not applicants.
    1. Beneficial owners are shareholders with at least a 25% interest in the company.
  3. Provide the details for the company including: (Bold are required, and you should make sure you have these when you start)

    1. Name
    2. ABN
    3. ACN
    4. Nature of business
    5. Whether it is registered in Australia
    6. Whether it is a public company
    7. Company tax file number
    8. Company business address (Not PO BOX);
      1. If you use a PO box as your mailing address you must still use your residential address.
      2. HALO only send correspondence via email so this will not matter.
    9. Specify whether the company is a financial institution
      1. A company will be a financial institution where its involved in substantially Provide the details for the company including: (Bold are required, and you should make sure you have these when you start)
    10. Specify whether any directors or beneficial owners are US residents for tax purposes.
      1. Specify whether the company earned 50% or more of its gross income from investment
    11. Click the checkbox and sign your name as a digital signature.
  4. Scroll down to applicant details.
  5. Fill out your personal details

    1. Your address is your residential address, cannot be a PO box but can enter that as

      mailing address later.

  6. When you reach the Country of Citizenship/Birth section remember to click the country which

    will appear in the drop-down menu.

  7. Nominate your industry.
  8. HALO will ask you for your primary source of funds and primary source of wealth to meet regulatory requirements. If you are retired these will likely be ‘Investment Income’. If you are
    still working, it will likely be ‘Income from employment’ or ‘business income’ for a company.
  9. Accept the acknowledgements at the end of the page and sign with your name as a digital
    signature. Given that HALO is an international investing platform and will be used to access
    US markets through Interactive Brokers they must confirm that you’re not a US resident or
    taxpayer, or a resident of a country currently sanctioned by the US (e.g. North Korea).
  10. Complete steps 7-11 for other applicants, directors, beneficiaries or other of the company.
  11. Once all details are complete scroll down to identity verification.
  12. Once you reach the identity verification page you can begin the process by clicking the green
    button marked ‘Start Verification’.
    1. If automatic verification is successful it will change to ‘verified’.
    2.  If not it may ask you for additional documents that it deems to be required (e.g.
      electoral roll details, utility bill, driver’s license details).
  13. Complete identity verification (steps 14) for any additional applicants.
  14. Once the original button says ‘verified’ you can submit your application for approval by clicking ‘submit application’. 

Should require further assistance please contact client services on 1300 720 292.

 

Quick Guide to setting up a Joint Account on HALO.
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Quick Guide to setting up a Joint Account on HALO.

Step by Step guide to setting up your HALO account as a Joint account.

Part A - Setting up application login details

Step 1: Go to https://app.halo-technologies.com/login

Step 2: Fill out the fields it requires. Note: for your password it needs to be a minimum of 8 characters, one capital and one number.

Step 3: Click ‘Join HALO’. An email will be sent to you title "Trading Application Approval required". Click on "Finalise Trading Account application".

Step 4: You will be prompted to login using the username and password provided. Please re-set your password and log out.

Step 5: Login to your HALO account with your username and new password.

Step 6: Click on ‘Apply Now’ to navigate to Trading Application. You can also click ‘Complete a trading application’.

Part B - Setting up a Joint Account

  1. Select Joint Account2. Select the number of applicants on your joint account (e.g. 2, 3, etc.)
  2. Scroll down to applicant details.
  3. Fill out your personal details including residential address.
    1. Residential address should be on ID documents and cannot be PO box.
  4. When you reach the Country of Citizenship/Birth section remember to click the country which will appear in the drop-down menu.
  5. In order to meet regulatory requirements, you will need to nominate:
    1. your industry (e.g. retired; retail),
    2. primary source of Funds (e.g. employment income; investment
    3. income if retired)
    4. primary source of wealth.

This is required by law.

  1. Nominate your tax status and provide tax file number.
  2. Repeat steps 4-7 for each applicant
  3. Accept the acknowledgements at the end of the page and sign with your name as a digital signature. Given that HALO is an international investing platform and will be used to access US markets through Interactive Brokers they must confirm that you are not a US resident or taxpayer, or a resident of a country currently sanctioned by the US (e.g. North Korea).
  1. Repeat step 9 for any other applicants.
  2. Once you reach the identity verification page you can begin the process by clicking the green button marked ‘Start Verification’.
    1. If automatic verification is successful it will change to ‘verified’.
    2. If not, it may ask you for additional documents that it deems to be required (e.g. electoral roll details, utility bill, driver’s license details).
  3. Complete identity verification (steps 14) for any additional applicants.
  4. Once the original button says ‘verified’ you can submit your application for approval by clicking ‘submit application’.

 

Performance

How recent is my data showing performance of my stocks / Vues?
Performance

How recent is my data showing performance of my stocks / Vues?

Our data feed shows the last price for each of your positions as at the close of the relevant stock market. As we operate in a number of international markets, there will be a delay in the performance data based on when the relevant market closes. For example, you will often see your performance data for US stocks in the afternoon Australian time, after the US market closes - however your European stocks will have updated data available in the morning Australian time as European markets are open earlier relative to US markets.

How do you calculate Growth, Valuation, and Risk measures?
Performance

How do you calculate Growth, Valuation, and Risk measures?

The aggregate measure of Growth for a Vue is calculated using reported past and future earnings growth estimates. One notch signifies lower growth while five notches reflects higher growth potential.

The aggregate measure of Valuation for the Vue is calculated using relative values measures such as free cash flow yield, earnings yield, and other empirically tested metrics. One notch signifies relative expensiveness while five notches signifies relative cheapness.

The aggregate measure of Risk for the Vue is calculated using the standard deviation of the share prices of the underlying shares in the Vue over the past 12 months. One notch signifies a narrower share price trading band of the constituent stocks in the Vue, and consequently lower risk, while five notches signifies higher risk (and wider share price trading band).

How do you measure performance?
Performance

How do you measure performance?

One of the best features of HALO is the display of performance. We provide returns data in both dollar and percentage terms.

The performance of your overall portfolio or a Vue you have invested in is measured as:

Capital Gain/Loss + Income + Currency Gain/Loss = Total Return.

The meaning of each term is outlined below:

Capital Gain/Loss – The change in dollar value of the underlying holdings calculated over relevant period in local currency converted to AUD based on daily mid spot rate at 4:00pm (GMT). This may also be calculated as a percentage.

Income – The total cash dividend payments received over relevant period in local currency converted to AUD based on daily mid spot rate at 4:00pm (GMT). This may also be calculated as a percentage.

Currency Gain/Loss – The dollar return derived from changes in the valuation of the underlying holdings due to exchange rate movements over relevant period converted to AUD based on daily mid spot rate at 4:00pm (GMT). This may also be calculated as a percentage.

Total Return – The dollar sum of Capital Gain/Loss, Income, and Currency Gain/Loss. This may also be calculated as a percentage.

Portfolio performance is calculated by Sharesight. Performance calculation methodology can be found here.

Corporate Actions

Spinoff
Corporate Actions

Spinoff

Spinoffs are corporate manoeuvres where a company separates a part of its business.

How does it affect my account?

Shareholders in the parent company continue to hold this company but also receive shares in the new entity.

Tax Implications:

The cost basis of the parent company is reduced by the value of the spinoff and the cost basis for the spinoff stocks is set at their market value on the day of the event.

Reverse stock split
Corporate Actions

Reverse stock split

Stocks are merged to form a smaller number of effectively more valuable shares.

How does this affect my account?

There will be a reduction in the quantity of shares, but the value of your total holdings stays the same.

Tax Implications:

It is not a tax event, but your cost price will be adjusted for the purpose of tax reporting.

Merger
Corporate Actions

Merger

A merger occurs when two existing companies combine into one new company or when one company acquires another.

When a merger occurs, the original stock will cease to exist. According to the ATO, the capital proceeds for the original shares are the total of the market value of the new shares received at the time of the takeover, and the money received (if any). The cost of acquiring the shares in the takeover or merged company is the market value of original shares at the time the other shares are acquired, reduced by any cash proceeds.

How does it affect my account?

You will cease to hold a specific stock and be issued with a different stock or with cash.

Tax Implications:

If a company in which you owned shares was taken over and you received new shares in exchange for your original shares, you may be entitled to a scrip-for-scrip rollover. The rollover allows you to defer paying CGT until a later CGT event happens (for example if you later dispose of the shares you acquired in the takeover). The rollover doesn't apply if you made a capital loss. For the purpose of tax reporting we report all mergers as capital gain events and leave it to the discretion of the shareholder to determine if they are eligible for scrip-for-scrip rollover.

 

Stock Split
Corporate Actions

Stock Split

When a company issues new shares to shareholders in proportion to their current holdings.

How does this affect my account?

There will be an increase in the quantity of shares, but value of your total holdings stays the same.

Tax Implications:

It is not a tax event, but your cost price will be adjusted for the purpose of tax reporting.

Dividend Reinvestment Plans
Corporate Actions

Dividend Reinvestment Plans

The shareholder is issued a dividend which then gets invested in the given stock.

How does it affect my account?

Rather than your cash holdings increasing you will reinvest this into the stock in question.

Tax Implications:

The tax implication is a modified cost basis and the dividend reported as income.

 

Share repurchases or buybacks
Corporate Actions

Share repurchases or buybacks

This corporate action involves shares being bought back by the company or an investor and are a tax event.

What is it?

A stock buyback, also known as a "share repurchase", is the process by which shares are bought back from the open market. There are two types:

Tender: A tender offer is when an investor proposes buying shares from every shareholder of a publicly traded company for a certain price at a certain time. The investor normally offers a higher price per share than the company’s stock price, providing shareholders a greater incentive to sell their shares.

Open Market: a company has to buy shares on the open market, just like an individual investor would, at the market price.

How does it affect my account?

If you choose to sell your shares you will no longer hold those stocks and you will be issued with cash in return.

Tax Implications:

The selling of shares in a buyback is a tax event and the income is classified as a capital gain (or loss).

Rights issues
Corporate Actions

Rights issues

What is a right issue and what impact will it have on my account?

What is a rights issue?

A rights issue is an issue of rights to a company's existing shareholders that entitles them to buy additional shares directly from the company in proportion to their existing holdings, often at a discount to the market price. Rights are often transferable, allowing the holder to sell them on the open market. You have 3 options when considering a rights offering:

  • Subscribe to the rights in full
  • Ignore the offer
  • Sell rights on the open market

How does it affect my account?

If you choose to subscribe you will be able to purchase additional shares, often at a discount.

Tax Implications:

The actual purchase of rights is not a tax event, however, as there is often a discounted price your overall cost basis may be altered. The sale of rights is a tax event and you will need to report this income as capital gains.

What is a corporate action?
Corporate Actions

What is a corporate action?

Corporate actions are offers issued by a publicly traded company that affects the securities issued by a company.

Corporate actions are offers issued by a publicly traded company that affects the securities issued by a company. They may have an impact on reportable capital gains and income. There are two types of corporate actions: voluntary and mandatory. Voluntary corporate actions mean shareholders can elect to participate. These may include rights issues, buybacks and dividend payments. Mandatory corporate actions are automatically applied as they do not provide shareholders with the option to participate or not participate. These may relate to company restructure, such as mergers.

Important information regarding election deadlines

Most corporate action instructions need to be submitted 7 days before the expiration of the offer.

Glossary

  • Rights Issue: A rights issue is an issue of rights to a company's existing shareholders that entitles them to buy additional shares directly from the company in proportion to their existing holdings.
  • Buyback/Share Repurchase: Share are bought back by the company or an investor. Two types: tender and open market.
  • Dividend Payment: Money paid from a company’s profits. May be issued in the form of cash or stock.
  • Dividend Reinvestment: Money issued as dividends is immediately used to purchase more shares in that company.
  • Stock split: a company issues additional shares in proportion to the holdings.
  • Reverse stock split: Stocks are merged to form a smaller number of effectively more valuable shares.
  • Merger: A merger occurs when two existing companies combine into one new company or when one company acquires another.
  • Spinoff: Spinoffs are corporate manoeuvres where a company separates a part of its business, employees and management team into a new, separate publicly traded company.
Dividend Payments
Corporate Actions

Dividend Payments

Dividends can be in the form of cash or stock. Cash dividends are payments made by the company to shareholders in the form of cash. Stock dividends are new shares given to shareholders.

How does it affect my account?

Cash dividends will increase your cash holdings and may provide a regular income on investment. Stock dividends provide shareholders with the choice to keep the stock or change it into cash.

Tax Implications

Dividends are a form of income and must be reported in annual tax returns.

Dividends from US-based Publicly Traded Partnerships.

US Tax withholding on distributions from Publicly Traded Partnerships (a type of limited partnership) is withheld at 37% (2018) as this is earned income in the US.

Investing

How will I be taxed on gains/international holdings?
Investing

How will I be taxed on gains/international holdings?

We give you the ability to view currency, dividend and share capital gains as well as prepare hassle-free end-of-year tax reports for your holdings. However, we do not offer any tax advice and you are responsible for your own tax filings.

What happens when I sell my shares or Vues?
Investing

What happens when I sell my shares or Vues?

When you sell your shares, the proceeds will be credited to your account after the settlement date. Settlement dates vary generally between two to three business days, depending on the jurisdiction involved. In unusual circumstances, market conditions can sometimes lead to an increase in settlement time. By default, the funds will be left in local foreign currency after settlement of trades. If you want to convert the funds to Australian Dollars, you can instruct us to do so on your behalf.

Can I set limit or stop-loss orders?
Investing

Can I set limit or stop-loss orders?

Yes, HALO does enable you to place limit orders. We do not currently support stop-loss orders.

How do I cancel an order? Do I get charged any penalty for it?
Investing

How do I cancel an order? Do I get charged any penalty for it?

We enable the cancellation of limit orders and there is no penalty charge.

I am trying to invest $10,000. But the actual amount invested is slightly less. Why?
Investing

I am trying to invest $10,000. But the actual amount invested is slightly less. Why?

Trading international shares is a complicated endeavour. There are several moving parts for a transaction, including:

  • The foreign exchange rate for the applicable currency you need to trade in
  • Whether the exchange your shares are listed on are open, and the shares are trading
  • The market price of the shares
  • The relevant fees, charges and government taxes that we need to pay to execute your transaction

To keep your experience as simple as possible, HALO builds in a buffer into the amount you’d like to invest in order to account for movements across each of the factors outlined above. This buffer is designed to maximise the amount available for you to invest.

How do you allocate the investment amount across the ten shares in a Vue?
Investing

How do you allocate the investment amount across the ten shares in a Vue?

HALO’s algorithm attempts to perform an equal allocation across all the selected shares, essentially trying to split the notional amount invested equally across the shares. Where this is not possible, as a result of minimum investment sizes, liquidity constraints, or other factors, our system will make its best effort to achieve an equal allocation in dollar terms across all the selected shares.

If you wish to change the allocation from what the system has calculated, you may go to the underlying shares and change the relevant quantity.

What countries can I access through HALO?
Investing

What countries can I access through HALO?

HALO enables you to trade in the following countries:

North America

  • United States
  • Canada
  • Mexico

Europe

  • Belgium
  • France
  • Germany
  • Netherlands
  • Spain
  • Finland
  • Switzerland
  • United Kingdom
  • Italy (Sell Only)
  • Norway
  • Portugal
  • Sweden

Asia Pacific

  • Australia
  • China
  • Hong Kong
  • Japan
  • Singapore

 

Can I buy/sell single shares?
Investing

Can I buy/sell single shares?

Yes, you can purchase any one of the approximately 20,000 stocks we have on our database.

You can also customise any Vues to remove individual stocks before purchase, and if you have already purchased a Vue but want to sell just one stock, you can do that as well.

How do I invest in a Vue?
Investing

How do I invest in a Vue?

The Vues page shows the Vues that are available for investment. You can explore each individual Vue to find the research thesis behind the Vue, detailed metrics and the list of shares. You have the choice to modify the Vue or if you’re happy with the current share picks, you can click to buy the Vue from this page.

Selecting Buy Vue will take you to the allocation step. By default, the allocation page displays the minimum possible investment in the Vue. You can choose any amount above the minimum and our allocate feature will attempt to provide an equal allocation in dollar terms across each of the shares automatically. If you wish to construct your own allocation, you can modify this accordingly.

There is also an option to select order type. Currently, you can choose either Market Order or Limit order. The default is set to Market Order.

Once you’re happy with the Vue, select proceed to confirm. This final step is designed to ensure that no inadvertent errors are passed through to the market for execution. Once you have confirmed your order, our system will acknowledge that it has received the order and then send it to the market for execution. You will receive a fill confirmation by e-mail once the trade has been executed.

Do you have live pricing data for shares?
Investing

Do you have live pricing data for shares?

ASX-listed share prices are updated every 20 minutes. U.S-based shares are updated every 60 minutes. All other prices are based on previous day closing prices which are converted into Australian Dollars.

What is an American Depositary Receipt (ADR)?
Investing

What is an American Depositary Receipt (ADR)?

ADRs allow U.S. banks to purchase a bulk lot of shares from a foreign company, bundle the shares into groups and reissue them on U.S. stock markets.

American Depositary Receipts (ADRs) are stocks that trade in the U.S. but represent a specified number of shares in a foreign corporation – such as Alibaba (BABA). Like regular U.S stocks, ADRs are bought and sold on U.S. markets. They also trade in U.S. dollars and clear through U.S. settlement systems.

ADRs were developed because of the complexities involved in buying shares in foreign countries and the difficulties associated with trading at different prices and currency values. ADRs allow U.S. banks to purchase a bulk lot of shares from a foreign company, bundle the shares into groups and reissue them on U.S. stock markets – namely, the New York Stock Exchange and NASDAQ.

Source: Investopedia

Why is my “Available Cash Amount” lower than my Cash Balance?
Investing

Why is my “Available Cash Amount” lower than my Cash Balance?

When placing a trade on a Vue or an individual stock HALO will allocate 5% of your available capital at the time to a buffer.

This buffer ensures that the order will be filled in the event that there are any currency movements while the trade is being executed. Market orders on ASX listed stocks will also attract the buffer to ensure that the order is executed successfully in the event of price movements. The buffer amount will be ‘blocked’ while the trade is waiting to be executed and any unused portion will be unblocked once the order is filled.

For example: If you have $10,000 in funds in your HALO cash holdings only $9500.00 will be available to place a trade.

Pricing

Why were the fees I was charged different to what HALO said they would be?
Pricing

Why were the fees I was charged different to what HALO said they would be?

The brokerage fees that HALO provides is an estimated value only. It is impossible to know the final amount invested, and the exchange rates achieved, until the trade is actually fulfilled. Unless in times of extreme volatility, the estimate and actual fees should be very similar.

In addition to fees charged by HALO, transactions may be subject to taxes and duties from foreign exchanges and governments. While we make our best efforts to keep these charges estimated, it may be that fee structures change without our knowledge.

Do I pay extra to customise a Vue or create my own?
Pricing

Do I pay extra to customise a Vue or create my own?

No, we don’t charge anything extra for customising or creating your own Vue.

Do you charge custodial fees?
Pricing

Do you charge custodial fees?

We do not charge any Custodial fees.

How much does it cost to buy or sell a Vue?
Pricing

How much does it cost to buy or sell a Vue?

The cost for any transactions in a Vue is simply the sum of the cost of the individual transactions whether they are purchases or sales.

What are your fees?
Pricing

What are your fees?

When buying or selling shares, HALO charges brokerage and currency conversion fees for each transaction. There may be additional taxes and fees charged by exchanges and countries in foreign jurisdictions which we pass on to you.

If you are investing in our Vues, you will be charged a research fee of 0.80% per annum (calculated daily and charged monthly) on the market value of the holdings in the Vue. This is in addition to the standard brokerage and currency conversion fees for any buy or sell transactions.

An annual platform access fee is also payable.

For more details please go to our pricing page.

Brokerage (per trade)
Trades under $12,500
$15
Trades over $12,500
0.12%
Foreign Exchange
Currency conversion fee
0.5%

Vues

How are Vues updated and how often? Do you automatically rebalance the Vues in my holdings?
Vues

How are Vues updated and how often? Do you automatically rebalance the Vues in my holdings?

Vues are reviewed every 3 months and updated if necessary. We will notify you of changes, if any. You have the option to follow through and implement the changes in your Vue, but we do not automatically rebalance on your behalf. Once you have purchased a Vue, you have complete control over how the Vue is managed, meaning you can decide to change the allocations to something that may better suit your personal circumstances, or remain invested in better performers over time.

How much should I invest in Vues?
Vues

How much should I invest in Vues?

We cannot provide you personal advice since we do not know your circumstances and are not licensed to do so.

However, we believe that investing in thematic Vues should be part of a broad investment strategy, where exposure to Vues gives your added diversification to your existing portfolio of assets.

HALO enables you to invest in portfolios of 10 shares each. Holding more shares reduces your risk relative to holding just a single company. This is because companies can operate in different parts across the value chain, in industries, and in different countries at different stages of the economic cycle. Each of these factors spreads out your risk so your portfolio becomes less sensitive to events in any one company, industry or geography.

The stock trading exchanges we work with may require a minimum trade amount, or minimum quantity per shares. When you purchase a Vue, we will tell you what the minimum amount required is.

How does investing in Vues compare to investing in ETFs or managed funds?
Vues

How does investing in Vues compare to investing in ETFs or managed funds?

Unlike ETFs and managed funds, Vues give you full transparency and you can add/remove shares in a Vue. While we do recommend shares in Vues and provide regular updates to the recommendations, we do not manage your portfolio for you. You will always be in full control of your investment.

When you invest in Vues, you are the beneficial owner of the individual shares, unlike managed funds and ETFs. Hence you may also receive tax benefits since tax gains and losses are not shared with other investors in a pooled vehicle.

Also, unlike index tracking ETFs, we pick stocks that we believe are likely to outperform others with exposure to the theme.

How are Vues created?
Vues

How are Vues created?

HALO constructs Vues designed around a theme using our in-house team of investment experts that have extensive experience in financial markets with institutions such as AMP, Perennial, Legal & General, Bank of America Merrill Lynch and Putnam Investments.

We also let users create and invest in their own Vues.

What is a Vue?
Vues

What is a Vue?

A Vue is a portfolio of 10 professionally-selected shares that align to a specific market, industry, trend, theme or investment style.

A Vue is simply a basket of 10 professionally-selected shares that provides exposure to a specific market, industry, trend, theme or investment style, e.g.:

  • Market: India
  • Industry: Entertainment
  • Trend: Artificial Intelligence
  • Theme: Clean Technology
  • Investment Style: High Dividends

Unlike an ETF or managed fund, when you invest in a Vue you are actually purchasing shares in the 10 recommended companies and therefore become the beneficial owner of the shares. This provides you a level of control and transparency not offered by ETFs and managed funds.

Vues can been seen as an alternative to managed funds and ETFs, and may appeal to investors who wish to have more control and transparency when it comes to their investments.

Vues offer the following features and benefits:

  1. Expert research: Vues and their underlying shares are selected by an investment committee with more than 50 years combined experience in global equity markets.
  2. Ongoing monitoring: Vues are monitored daily and a comprehensive review takes place every three months. Investors are notified of any recommended portfolio changes and can choose to ignore or action the recommendation.
  3. Control and transparency: As the beneficial owner of the shares you know exactly what you’re invested in, and can take an active approach to trade size and timing. If you wish you can remove companies from a Vue, change the amount you invest in each company and place each trade at a time of your choosing.
  4. Concentrated: Unlike most ETFs and managed funds, Vues are concentrated share portfolios that aim to outperform industry benchmarks and indexes.
  5. Cost-effective: We charge a competitive research fee when investing in a Vue. There are no ongoing performance or administration fees.

Security

Where are my cash and stocks held?
Security

Where are my cash and stocks held?

Your initial cash deposit is received in HALO’s trust account at ANZ. We move this cash balance to Interactive Brokers within two business days. Interactive Brokers is the custodian of your cash and stocks. They execute your buy and sell trade requests.

Interactive Brokers is one of the largest retail brokerages in the U.S. and is a NASDAQ listed company (NASDAQ GS: IBKR) with strong levels of equity capital and robust risk management systems. For more details please go to www.interactivebrokers.com.au

Interactive Brokers LLC is a registered Broker-Dealer, Futures Commission Merchant and Forex Dealer Member, regulated by the U.S. Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC) and the National Futures Association (NFA), and is a member of the Financial Industry Regulatory Authority (FINRA) and several other self-regulatory organizations. Interactive Brokers does not endorse or recommend any introducing brokers, third-party financial advisors or hedge funds, including HALO Pty Ltd. Interactive Brokers provides execution and clearing services to customers. None of the information contained herein constitutes a recommendation, offer, or solicitation of an offer by Interactive Brokers to buy, sell or hold any security, financial product or instrument or to engage in any specific investment strategy. Interactive Brokers makes no representation and assumes no liability to the accuracy or completeness of the information provided on this website.

For more information regarding Interactive Brokers, please visit www.interactivebrokers.com.

What happens to my money if you are acquired, go public or close?
Security

What happens to my money if you are acquired, go public or close?

If we are acquired or go public, your portfolio and funds held with us will remain secure and you will, as at any point, have the ability to close your HALO account, sell your holdings and withdraw your savings.

In the unlikely event we close, which we don’t foresee, we will give you the choice of transferring your positions and cash to another broker.

How do you prevent against online fraud?
Security

How do you prevent against online fraud?

We have developed an extremely secure infrastructure with several layers of security. All data is encrypted at rest and in transit, is protected by firewalls, and is backed up regularly.

How can I trust HALO with my money and data?
Security

How can I trust HALO with my money and data?

HALO is operated by HALO Technologies Pty Ltd (ABN 54 623 830 866) and holds an Australian Financial Services Licence (484264) issued by ASIC. Please read our Financial Services Guide for further information. We are also one of the few Australian companies to be registered as a Qualified Intermediary with the IRS in the U.S.

We are well funded by publicly listed institutions such as AMP, and venture capitalists such as H2 Ventures and Gatica Investments.

We have strong governance procedures in place and the management team has several decades of experience with leading fund managers, brokerages, and investment banks. Please see the About page for more information.

We have developed an extremely secure infrastructure with several layers of security. All data is encrypted at rest and in transit, is protected by firewalls, and is backed up regularly.

Am I the legal owner of the securities?
Security

Am I the legal owner of the securities?

You are the beneficial owner of the securities. Our sub-custodian, Interactive Brokers, or sub-custodians appointed by Interactive Brokers are the legal owners of the securities and they hold the securities in trust for you. This system of ownership is common for foreign securities as the CHESS system is not available in foreign jurisdictions.

Account Maintenance

What happens to the dividends from the shares in my portfolio?
Account Maintenance

What happens to the dividends from the shares in my portfolio?

The dividends paid will be applied to your account in the local currency of the dividends.

Do you allow dividend reinvesting?
Account Maintenance

Do you allow dividend reinvesting?

You can elect this option for US stocks, only. However, it must be applied to all US stocks in your account. You can let us know by email notification to support@HALO.com.au.

How do you help me with tax statements at the end of the year?
Account Maintenance

How do you help me with tax statements at the end of the year?

Our reporting platform provides hassle-free tax reporting by sending you a statement that summarises all tax related transactions over the relevant reporting period.

How do you handle corporate actions?
Account Maintenance

How do you handle corporate actions?

As corporate actions arise, we will notify you as to your available options and then execute your instructions. If you do not respond to our notifications, a default option will be applied to the corporate action. Further information on the types of corporate actions that may occur and how they might affect your account can be found in our Corporate Actions Collection.

How do you handle international taxation on income?
Account Maintenance

How do you handle international taxation on income?

HALO is not a registered tax agent and does not provide tax advice. Please contact a registered tax agent for more details on the implication of investing in international shares.

The following information is intended only as a guide.

Australian tax residents, who are not U.S. tax residents, will have taxes withheld at 15% for U.S. sourced income as the result of a tax treaty between Australia and the U.S. Withholding rates from other jurisdictions will depend on tax treaties that may exist between that country and Australia. Note that we cannot guarantee that the withholding rates that are specified in the treaties are applied, and we are unable to help in recovery of tax withheld in foreign jurisdictions.

Australian tax residents, who are U.S. tax residents, will generally not have any withholding on U.S. sourced income.