InvestNow Expands Time Deposits and KiwiSaver ETFs

InvestNow plans to add three more banks offering term deposits through its online investment platform.

Wednesday, June 14, 2023, 1:52 p.m.

By Andrea Malcolm

InvestNow managing director Mike Heath said term deposits account for about 10% of the platform’s $1.4 billion total, which has tripled in value to about $150 million over the past 12 months. .

“Term deposits are growing rapidly and growth remains stable. We are in discussions with three other banks about joining the platform to complete our customer proposition.”

Westpac, ASB and TSB would then join the existing services of ANZ, BNZ, Heartland, SBS, Bank of China and China Construction Bank.

“It’s not a big part of the business, but it’s growing and we’re seeing a lot of growth within our customer base and new people are taking advantage of the ability to have one account and move money between banks without opening one. I’m participating.” Give each one an account. “

InvestNow doesn’t offer term funding, but Heath said it’s been discussed on and off. “I’m not saying never.

“We know we can build them. Looking at the tax reform proposals for family trusts next year, family trusts will be able to invest in PIE funds and will be able to offer PIE products to give them tax benefits.” It would be wise to consider

“When interest rates and deposit rates are high, the importance of the best RWT and PIR rates becomes very real.”

In the KiwiSaver space, Heath said InvestNow’s PIE-wrapped Vanguard products, Foundation US 500 and Foundation Total World, have been popular since their March additions. Prior to being added to KiwiSaver, the Vanguard ETF PIE fund was also available as a managed fund.

“People know Vanguard as a brand. Many of those who have joined our KiwiSaver scheme since March have joined to access these parts of the KiwiSaver scheme.”

Responding to continued demand from KiwiSaver members for high-growth diversified funds, InvestNow Senior Portfolio Manager Jason Choi said Heath is building a new portfolio that is expected to go public within the next two months. said Mr.

In the wake of the success of two Vanguard ETF PIE funds, InvestNow is considering building a PIE fund backed by similar ETFs to access the NASDAQ and other foreign exchanges, among others.

“We have always had a great deal of interest in commodity funds. I’m going to ask them what they’re interested in.”
InvestNow has 3,500 KiwiSaver customers, most of whom also invest in managed funds.

“They are serious about investing. doing.

“We are seeing an increase in demand from our advisors. Advisors love the ease of use and convenience for their clients, and they are able to build KiwiSaver portfolios for their clients across multiple managers.”

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