Nikko Asset Management NZ has tweaked its GoalsGetter robo-advice service to accommodate transaction-only investors.
George Carter, Nikko NZ chief, said the changes follow responses from clients looking to invest in funds or simply transfer to the group’s KiwiSaver scheme without first establishing personalised savings targets.
“We had feedback suggesting some clients wanted to just put money into our funds without selecting a goal,” Carter said. “Previously, we also had a retirement savings goal that wasn’t just KiwiSaver. But, again, the feedback we has was that some clients just wanted to move their KiwiSaver to us.”
Following the review, Nikko added a ‘Just Invest’ button allowing clients to buy funds without going through the goal-setting process and dropped the retirement savings planning tool in favour of a KiwiSaver-only projection.
“But clients can still create retirement savings goals if they want,” he said.
Launched in March 2019, the Nikko GoalsGetter platform currently has about 2,000 users with $100 million or so under management.
The platform served as a gateway for the many Nikko KiwiSaver clients who poured into the scheme over the last 12 months after it included the Ark Disruptive Innovation Fund as a stand-alone option.
As at the end of September this year, more than 1,300 of the total 1,500 Nikko KiwiSaver members were invested in the Ark fund.
Headed by Cathie Wood, the US-based Ark had a stellar 2020 as outsize fund performance (100 per cent plus for its ‘disruptive innovation’ strategy) saw assets under management rise from about US$3 billion to more than US$40 billion during the year.
In US dollar terms the flagship Ark Disruptive Innovation Fund (which the Nikko KiwiSaver scheme feeds into) is down about 14 per cent this year.
Carter said the short-term performance wobble has seen some KiwiSaver clients rebalance their Ark holdings into other diversified Nikko funds.
“But most of the Ark investors should understand that this is a long-term strategy with high volatility at times,” he said.
Nikko KiwiSaver diversified funds also invest in the Ark strategy, topping out at a targeted 6 per cent exposure for the growth option.
The Nikko global business owns about 15 per cent of Ark.
In October, Nikko NZ launched another innovative product, creating a zero-interest, cash-like fund designed to create a steady flow of donations to help the Tear Fund charity fight modern slavery.
Carter said the Freedom Fund had garnered about $200,000 to date with some large clients also committing to substantial investments over the next couple of months.
“Ideally, we’d like to see lots of people invest smaller amounts – say $1,000 to $4,000 – into the Freedom Fund as well,” he said.