Australian provider BetaShares is poised to bring some competition to NZ’s exchange traded fund (ETF) market after receiving a license to operate this side of Tasman last week.
Approval of the Managed Investment Scheme (MIS) license comes just two weeks after Thom, Head of BetaShares NZ. Bentley leaves the company.
However, the MIS license is an important step forward for BetaShares, which has long expressed its ambition to develop a Portfolio Investment Entity (PIE) product for the NZ market.
Currently, only NZX-owned Smartshares offers locally-based ETFs that are more tax efficient while managing other risks such as currency fluctuations.
BetaShares founder Alex Vynokur said that while a “significant number” of NZ financial advisors and investors are already using the manager’s ASX-listed ETFs, “this latest and welcome development will enable growth We will be able to expand both our product range and our capabilities in the New Zealand market.” .
“In our ongoing and regular conversations with local financial advisors and investors, we see a clear need for a broader range of transparent and convenient investment solutions to help Kiwis of all levels achieve their financial goals. I recognized my sexuality,” says Vynokur. .
“To that end, our recent investment in this important market allows us to continue our plans to make a range of innovative, cost-effective and well-structured PIE funds available to local investors. We look forward to completing the work to bring the first range of investment solutions to the New Zealand market in the near future.”
BetaShares originally aimed to delay the launch of the NZ fund. It will likely start with a ‘vanilla’ stock index product rather than the more exotic theme-based his ETFs that the company recently rolled out in Australia.
However, Bentley’s abrupt exit, which is expected to soon see another Australian investor emerge, may have delayed BetaShares NZ’s release schedule.
Peter Harper, Head of Distribution and Capital Markets at BetaShares, said the recruitment process for NZ country leaders is already underway.
“As part of this effort, we have already begun conversations with many highly qualified candidates for this critical role in our growing business,” said Harper. “We are still accepting applications for senior positions, so interested candidates should contact us as soon as possible.”
BetaShares manages approximately A$22 billion across a product suite of over 60 funds, compared to a reported NZ$5.7 billion in Smartshares coverage of approximately 40 ETFs at the end of August.
The FMA currently lists 70 MIS managers and BetaShares is only the second to be approved by the regulator after the Kiwi Wealth Investments Limited Partnership was approved in June this year. Kiwi Wealth is now part of the Fisher Funds empire.
https://investmentnews.co.nz/investment-news/betashares-wins-nz-licence-approval/ BetaShares wins NZ license approval