Rabobank NZ has ditched its pioneering direct-to-consumer funds management business in a deal that could see most clients transition to the recently-launched InvestNow platform.
Under a move confirmed to local fund managers yesterday by RaboDirect key accounts and investments manager, Michael Courtney, clients would be offered the options of either transferring holdings to InvestNow or cashing out by March 31 next year.
Established in 2005 as part of the bank’s online RaboDirect offering, the funds platform provided consumers with direct access to a range of over 40 products managed by nine firms including the likes of AMP Capital, Devon Funds Management, Mint Asset Management and Pathfinder.
However, the InvestNow transfer offer would not include the RaboDirect AMP Capital-managed Cash PIE and Term Advantage funds, which will be shuttered.
It is understood the RaboDirect fund business had close to $120 million under management.
Since launch this January, InvestNow has accrued well over $100 million in funds under management with a now-wider range of underlying products than RaboDirect.
Unlike RaboDirect, which charges a 0.75 per cent administration fee, InvestNow clients pay only the costs of the underlying funds.