Australian exchange-traded fund (ETF) pioneer, Betashares, has kicked off its NZ campaign with full platform coverage after listing five new funds on the Consilium, Adminis, Apex, NZX Wealth Technologies and other adviser-directed services this week.
Betashares launched five portfolio investment entity (PIE) products earlier this year that feed into underlying ETFs including the group’s flagship ASX 200 strategy as well as three other equities funds and one following an Australian fixed income index.
Vinne Wadhera, Betashares executive director institutional and adviser services, said in a statement that the “inclusion of our innovative PIE funds on platform menus is a direct result of the significant interest shown by our trusted adviser clients”.
Wadhera said the Australian firm, which manages more than A$29 billion in ASX-listed ETFs, would “continue to engage” with NZ financial advisers on the product range.
Auckland-headquartered consulting firm, MyFiduciary, had also recently confirmed Betashares had met the Fi360 Global Fiduciary Standard of Excellence for Investment Managers, according to the release, confirming the manager exhibited “a differentiated client servicing value proposition to many other fund managers” among other qualities.
While Betashares had already established a following on this side of the Tasman from financial advisers and other investors (including wholesale funds), the firm has been developing the more tax-efficient PIEs for the NZ market for the last couple of years. The group is in the throes of staffing-up in NZ following the exit of inaugural country lead, Thom Bentley last year.
But in addition to the “early demand” for the PIE funds, Wadhera said NZ advisers were also taking advantage of the Betashares practice development services to help them “build and scale their businesses”.
Founded by Alex Vynokur in 2010, Betashares has grown quickly to reach almost $30 billion under management across 60 or so ETFs. US private equity outfit, TA Associates holds a large minority stake in the firm.
Also last week, fund administration and licensed supervisor, Trustees Executors (TE), picked up the AIA NZ investment-linked unit trust back-office duties.
AIA, the largest NZ life insurer, reported about $510 million under management in legacy investment-linked products – some of which it inherited in the buyout of Sovereign in 2018 – as at the end of last year.
In a statement, AIA NZ chief product and investments officer, Len Elikhis, said the arrangement with TE “has enabled us to simplify our investment administration arrangements for the benefit of our customers holding unit linked investment products.”
“This is a valued partnership, which allows us to achieve administration efficiencies as well as streamlined insights and reporting, providing greater benefit to both our business and our customers,” Elikhis said.
Prior to the TE deal, AIA administered the investment products in-house.