InvestNow Breaks Half Billion Barrier
Pioneering NZ direct-to-consumer investment platform, InvestNow, is gearing up for the next stage of growth after rocketing past $500 million under management in May.
Mike Heath, InvestNow general manager, said hitting the half billion mark in just over three years since launch proved the huge potential in the previously under-served direct investment market in NZ.
“When InvestNow launched early in 2017, self-directed fund investors had very little choice – and what options they had were expensive and inefficient,” Heath said. “We’ve shown that with the right technology, a good product range and institutional-level pricing, many NZ investors will trust a direct platform to help build their wealth.”
As well as seeing stellar organic member growth over the last three plus years, he said InvestNow also expanded on the back of two key strategic purchases: the Rabobank fund platform April 2018; and, the AMP Capital direct client book earlier this year.
“We’ve had almost 100 per cent retention of the Rabobank and AMP Capital clients, which shows experienced direct investors appreciate the high level of service we deliver – and our low costs,” Heath said. “At the same time InvestNow has seen record new member sign-ups over 2020 with net numbers growing at about 2,000 each month over March and April alone.”
InvestNow has also steadily added quality fund choices over the last three years in addition to expanding into the term deposit market in 2018. Today, the platform offers more than 140 funds sourced from over 20 reputed managers and a full range of term deposits from five different banks.
Heath said the ability to build a diversified investment portfolio from a single easy-to-use platform without the need for multiple identity checks has been a major drawcard for InvestNow members.
“And the fact we offer funds like Vanguard with a 0.20% per annum fee, with no extra platform administration costs makes InvestNow a stand-out in the market,” he said. “But we’re not just resting on our achievements to date, InvestNow has a few exciting new developments under way.”
Firstly, the InvestNow KiwiSaver scheme is scheduled to go live in the next few months, offering investors an unparalleled level of choice. Heath said while the details would be released shortly, the InvestNow KiwiSaver scheme would remain true to the group’s principles of providing quality investment options to members at a low cost.
“We’re also exploring the potential to add NZ corporate bonds to our investment menu and – further down the track – direct equities,” he said. “And, of course, we’re always looking at growing our core fund offerings with a new range of exchange-traded funds currently under review.
“Reaching $0.5 billion under management in such a short time is great endorsement of the InvestNow model of giving Kiwi investors the tools to grow and manage their wealth. We look forward to helping them further along that journey.”
Launched early in 2017, the Wellington-headquartered InvestNow manages over $500 million on behalf of 26,000 plus clients. The online platform offers clients free access to a range of more than 140 funds managed by 23 underlying investment firms across a range of asset classes and countries.
In October 2018 InvestNow began offering a suite of BNZ term deposits, adding SBS to the mix the following month. In 2019 ANZ, the China Construction Bank and Heartland Bank also listed term deposits on the service.
InvestNow members pay no platform or administration fees with a low investment minimum of $250. The business took over the direct fund investment arm of Rabobank NZ in April 2018 and AMP Capital’s direct retail customer business in April 2020. InvestNow is a wholly-owned subsidiary of Implemented Investment Solutions (IIS).