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Value-add deals for InvestNow pick ‘n mix advisors

InvestNow, a digital investment platform that enables DIY-style KiwiSaver schemes, reports strong growth in 2022, especially from members working with financial advisors.

Thursday, February 2, 2023, 6:08 AM

Andrea Malcolm

In the 12 months to the end of December, new customers brought in a net $150 million in overall funding, increasing membership to 26,000. Meanwhile, existing members contributed regularly to keep the course through challenging market conditions. Term deposits on the platform were also popular in the rising interest rate environment in 2022, with inflows of over 100% year-on-year.

The InvestNow KiwiSaver scheme, which offers members a choice of external fund managers and a range of in-house diversified funds, more than doubled in size in the 12 months to the end of December.

“KiwiSaver has experienced stellar growth, especially in areas where advisors are involved,” said founder Anthony Edmonds. “The InvestNow platform allows managers like Milford, Mint Asset Management and Pathfinder to be brought together in his KiwiSaver account for one of his clients.”

About 50% of the inflow in 2022 came from members working with financial advisors, Edmonds said. “For the advisor, it is a great opportunity to add value by choosing different funds within the KiwiSaver portfolio and his manager to suit the client’s personal goals and risk appetite. [the clients] Stick with them.

According to Edmonds, the average profile of an InvestNow member is someone interested in investing and willing to do their homework.

“Interestingly, our members are wealthier than people often choose. The average portfolio size is over $50,000 and KiwiSaver will be even higher – especially if you work with advisors.” am.”

InvestNow provides access to 35 managed KiwiSaver funds and over 150 regular funds from 28 fund managers and 6 banks. His uniquely constructed KiwiSaver scheme can include exposure to regular managed funds as well as KiwiSaver funds. According to Edmonds, almost all his InvestNow members use a mix of their own portfolios.

Edmonds says that allowing for this range of diversification is a feature that differentiates InvestNow from other investment platforms.

“We are really excited about that. We want people to have a diversified portfolio of professionally managed funds. or anything to suit your goals.We do not encourage the buying or selling of individual stocks.In the past 12 months, people with overweight exposure and lack of diversification have suffered from this approach. you can see it.”

InvestNow members have heard the message of risk management after seeing massive inflows into the company’s Foundation Series balanced growth fund, especially in the group’s KiwiSaver scheme, he said.

In addition to KiwiSaver options this year, InvestNow will soon introduce two passive ETFs (currently the Foundation series) with transaction fees on the KiwiSaver scheme. Foundation Series US 500 has an annual management fee of 0.03% per annum and a 0.5% transaction fee on all trades. Foundation Series Total World Fund management fees are 0.07% and 0.5% for all trades. Invests in the Vanguard US 500 ETF and the Vanguard Total World 500 ETF.

“Sometimes there are funds with transaction fees that also have the same transaction fees as the underlying fund, but those people are long-term savers rather than going in and out of the fund, so it’s an interesting option with KiwiSaver. , which makes these rates incredibly attractive.”

Edmonds said InvestNow has launched its own Foundation Series. This provides low-cost, tax-efficient exposure to global stock index and fixed income assets as Simplicity did not want to offer similar products on platforms like his InvestNow.

“We wanted to offer a variety of low cost funds and the only way we could do that was to build our own funds. So we built them at a low cost. But we are also focused on ensuring tax savings.”

Foundation Series funds will grow 80% in 2022, outperforming similar offerings from Simplicity by about 2%.

Note: Pre-tax and fee-based performance comparison as of December 31, 2022:











1 month Three months 1 year 2 years (years)
Foundation Series Balanced Fund -1.66% 1.74% -11.61% -1.42%
simple balance fund -3.04% 2.02% -13.49% -3.59%
difference +1.38% -0.28% +1.88% +2.17%
1 month Three months 1 year 2 years (years)
Foundation Series Growth Fund -1.97% 2.20% -12.05% 0.45%
Simplicity Growth Fund -3.65% 2.52% -14.75% -2.22%
difference +1.68% -0.32% +2.70% +2.67%

tag: Invest Now

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