Australian exchange-traded fund (ETF) provider, BetaShares, has hit a snag in its trans-Tasman expansion plans after the resignation of sole NZ employee last week.
It is understood, BetaShares NZ head of institutional and adviser relationships, Thom Bentley, has left the ETF pioneer to represent another Australia-based investment firm.
A BetaShares spokesperson said in a release: “We remain committed and excited to launch a range of innovative products in New Zealand, which we aim to do in the near future.”
Bentley joined BetaShares last May from the NZX-owned Smartshares, where he served as head of institutional for three years.
In a note to clients, BetaShares Australia head of institutional, Vinnie Wadhera, said: “We wanted to advise you that after 18-months with the Firm, Thom Bentley has decided to leave BetaShares due to an unforeseen change in personal circumstances. We are very grateful for his contribution to our NZ business, and he leaves us with our warmest wishes.
“To continue an uninterrupted level of service and given the longstanding relationship with your firm and BetaShares, Peter Harper (Executive Director), Rachael Hansen (Associate) and myself will be your interim account managers.”
The hyperactive Australian firm has long eyed-up the NZ market as a potential new hunting ground following rapid growth in its home country since launch in 2009.
BetaShares listed its first ETF on the ASX in 2010 just as demand for the products began to surge: at latest count, the firm reported more than A$22 billion under management spread across 60 plus products.
In 2022 alone, the manager has rolled out eight new ETFs (with one on the way), mostly targeting a range of niche thematics including future food, video gaming and the ‘metaverse’.
While NZ investors are able to easily access the ASX-listed BetaShares products, the firm is preparing to launch portfolio investment entity (PIE) ETFs structured for the local market to compete directly against Smartshares with a managed investment scheme licence application currently in train.
Headed by Alex Vynokur, Betashares is now majority owned by US private equity firm, TA Associates, which also has stakes in Fisher Funds and Russell Investments.
According to the latest BetaShares report, the Australian ETF market saw a bumper month in July in the wake of a difficult first half as asset values grew almost 5 per cent in the month to peak above A$130 billion.
“Approximately 40% of the industry growth came from strong net flows this month [July], with net inflows of $2.2B, the highest level of the last 9 months,” the BetaShares report says. “Notably, particularly in light of all the volatility we have seen in sharemarkets in recent times, the Australian ETF Industry has not had a single month of net outflows over the last 10 years.”
However, ETF trading activity fell almost 20 per cent month-on-month, the report says.
The BetaShares data shows the ASX currently lists 300 ETFs with two new product launches in July balanced by two product closures – the Magellan FuturePay and the Vanguard Global Active Multi-factor funds.