The NZX-owned investment platform, Wealth Technologies, has pushed through $16 billion in funds under administration in an end-of-year flurry that saw five advisory firms clamber aboard.
In a release, the stock exchange investment admin play revealed four other advice operations were primed to transition early in 2025 “from a variety of platforms” including the Christchurch-based Fortitude Financial.
The other “newly contracted advice businesses” hail from Auckland, Waikato and Christchurch, the statement says.
Among other recently re-platformed financial advice providers, Wealth Technologies signed up DecisionMakers and Kingshield Investments from Apex (formerly MMC/Aegis) as well as Distinction Wealth. The NZX service also took on the Alvarium-owned Newton Ross, CP Wealth and an unnamed Whakatane-based firm since June.
Earlier in the year, the platform welcomed about $1.6 billion of Fisher Funds-managed money (previously the private portfolio service offered under Kiwi Wealth colours) and Strategic Financial Planning – the latter including an API integration with OMNIMax.
Lisa Turnbull, Wealth Technologies chief, said in the release: “We look forward to continuing to build momentum and further solidifying our strong market position.”
In an investor update this November, the NZX reported a total assets under administration for ‘contracted clients’ of about $45 billion including some in-house money from sister funds manager, Smart – implying about $30 billion to transition over the next couple of years.
Elsewhere last week, a KiwiSaver client-servicing start-up looking to tap into artificial intelligence (AI) potential has won a spot in the 2025 vintage Creative HQ NZ Fintech Lab Accelerator – the same Wellington City and Regional Council-owned incubator that hatched the likes of Sharesies and Hnry.
Founded by Clive Fernandes, Sevaka, joins 13 other hopefuls vying for a $200,000 investment from the NZ Fintech Fund and the Booster Innovation Fund.
As reported in October, Sevaka aims to automate 80 per cent of KiwiSaver client-servicing tasks.
“The intention is that this will allow staff members to focus their efforts on higher-value tasks and consequently make advice more accessible,” Fernandes said at the time.
He also built the National Capital robo-advice KiwiSaver business now housed in Saturn Portfolio.
Meanwhile, nouveau Australian retail fixed income app, Blossom, is angling for a NZ client base with a Kiwi dollar-denominated version released last week under the trans-Tasman Mutual Recognition regime.
The platform feeds into fixed income portfolios ultimately managed by Fortlake Asset Management – described as the ‘liquidity manager’ in disclosure documents.
According to the Blossom product disclosure statement, management fees amount to 1.2 per cent split between Fortlake (0.5 per cent) and responsible entity – or supervisor – Gleaneagle Asset Management (0.7 per cent). Gleneagle can as well be “reimbursed” indirect costs of up to 0.5 per cent.
Blossum also collects a so-called ‘threshold management fee’ if daily returns exceed targets after all other fees – although it’s not a performance fee, the PDS says.
Structured as an Australian unit trust, Blossom NZ investors would miss out on the portfolio investment entity (PIE) benefits offered by a growing posse of cash and fixed income products in NZ.
Recent cash-like PIE products include releases by Sharesies and Booster, for example. NZ retail investors can also access multiple fixed income and managed fund cash PIEs either direct or through platforms such as InvestNow. Furthermore, newcomer cash-style provider, Wedge – established by former Fisher Funds fixed income head, David McLeish – is slated to go live early next year.
Blossom – not to be confused with online NZ business lender, Blossum – has accrued about A$93 million since launch in Australia three years ago.