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Do you offer direct indexing?

No, we do not offer direct indexing in QuietGrowth portfolios. The innovation of direct indexing by automated investment management services emerged in the U.S. in 2015. We are optimistic about this innovation. Using this method, a portfolio manager can replicate an ETF index with individual stocks constituting that index.

The following is the technical reason for not offering direct indexing in Australia. For QuietGrowth portfolios, your securities are held under your own unique Holder Identification Number (HIN). Your security holdings are held in the 'individual HIN' structure, which is preferable, instead of the 'custodial' structure. Technically, buying or selling fractional shares is not possible because your securities are held in the 'individual HIN' structure. And, we would not be able to build the direct indexing feature without utilising fractional shares.

We believe that the benefit of having the 'individual HIN' structure is far more than having the direct indexing feature with a 'custodial' structure.

Also read the answers to the related questions:

• Where are my securities held?
• Do you buy or sell fractional shares??

Additionally, you can consider to read the following knowledge resource:

• An introduction to Holder Identification Number (HIN)