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InvestNow introduces new ways to buy the world

InvestNow introduces new ways to buy the world

Online managed fund platform, InvestNow, has added a compelling range of NZX Smartshares products to its rapidly-growing menu.

“Fuelled by their demand for passive funds, the Smartshares exchange-traded funds (ETFs) are a range of funds that many people have been asking InvestNow to add to their service” says Mike Heath, InvestNow general manager. “Initially we will be offering the following ETFs:

• NZ Top 50

• Aus Top 20

• NZ Mid Cap

• Aus Mid Cap

• Total World

• Europe

• US 500

These seven Smartshares ETFs offer investors a low-cost way to access multiple asset classes in both New Zealand and across the world”.

“Smartshares provides investors a relatively simple and cheap way to access local and global assets via the NZX,” Heath says. “And through InvestNow we’ve made that process even simpler and cheaper.”

InvestNow does not charge any administration or transaction fees, and that will be the same for Smartshares investors. InvestNow clients can buy the seven Smartshares ETFs directly without incurring the $30 per product set-up fee.

“Our standard low minimum investment of $250 applies to the Smartshares funds, plus there is no need to make regular contributions” Heath says.

He says Smartshares ETFs have proven particularly popular with self-directed investors, who appreciate the flexibility and low-cost nature of the products.

ETFs, which allow people to invest in index funds as easily as buying shares, have experienced explosive growth globally over the last few years. According to researcher ETFGI, in April this year the global ETF market broke through the US$4 trillion mark – representing an increase of about five-times in a decade.

At the same time the number of ETFs has rocketed from about 450 in 2005 to the current 6,000 plus, ETFGI data shows.

While the sheer amount of ETFs on offer can be overwhelming for investors, Dean Anderson, Smartshares product manager, says the NZX offerings target familiar asset classes measured against well-established benchmarks.

“InvestNow customers, through Smartshares, can access equity market index products that are close to home – such as the NZX Top 50 or the Top 20 Australian shares – or further afield to the US and Europe” Anderson says. “Or they can even go global with our Total World ETF.”

Most of the underlying offshore Smartshares ETFs are managed by the world’s biggest index investment firm, Vanguard, while the NZX itself operates the Australasian products.

Anderson says investors use Smartshares to achieve many different goals.

“Some clients construct a complete diversified portfolio, investing across the Smartshares range,” he says. “Others simply invest in a single asset class – using it as a ‘core’ passive holding – or use our ETFs to express their strategic views on different assets.”

Whatever their ultimate purpose, Anderson says Smartshares investors appreciate the low-cost, administrative simplicity and tax efficiency (the NZX products are structured asportfolio investment entities – PIEs) the ETF range provides.

“We’re thrilled that InvestNow has added our ETFs to its platform,” he says. “We think this will open up Smartshares to the growing population of self-directed investors in New Zealand.”

Launched in January 2017 by Wellington-based specialist financial services firm Implemented Investment Solutions, InvestNow has a mandate to provide retail investors with an efficient, hassle-free way to buy managed funds online.

Since launch InvestNow has attracted $75 million in funds under management.


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