Public Trust has stuck with the NZX-owned investment platform business as the administrative home for about $700 million of client funds.
But in the deal confirmed last week, Public Trust will transfer from the NZX ‘legacy’ platform to the group’s new-fangled investment technology.
The government-owned Public Trust was an early client of the Apteryx platform, purchased by the stock exchange operator in 2015 ahead of a rebrand as NZX Wealth Technologies. Since spending about $1.5 million to buy Apteryx, the NZX has investment many millions more building the new technology stack in a bid to attract a broader range of clients.
In a statement, NZX Wealth chief, Lisa Turnbull, said the Public Trust money would begin shifting to the modern platform in the next few weeks.
“This is a real vote of confidence in our technology and service proposition and the focus we put on the specific needs of each of our customers,” Turnbull said.
Last last year, NZX Wealth completed the transfer of two former Aegis (now MMC Wealth) clients, Hobson Wealth and Saturn Advice, to the new platform, more than doubling total funds under administration (FUA) to about $7.2 billion as at the end of 2020. Previously, the retooled NZX platform housed only Craigs Investment Partners and JB Were.
While the Public Trust win won’t add to the NZX Wealth total FUA, the platform “is currently engaged with a number of new prospects”, according to the release, touting “strong growth again” in the year ahead.
In earlier corporate documents the NZX forecast Wealth Technologies FUA rising to about $20 billion by late 2020 with a target of between $35 billion to $50 billion by the end of 2023.
As reported here, Public Trust tendered its investment wrap provider business following a review. Public Trust managed about $1 billion of client money on-platform including $265 million in its Personalised Portfolio Service, however, only $680 million or so is on the NZX system.
The deal, too, is admin-only with Public Trust retaining custody duties (as does Hobson Wealth).
Mark Lawrence, Public Trust head of custody, said in the release: “We went through a comprehensive process to ensure that our platform provider can meet the needs of both Public Trust and our clients. We have real confidence in the high level of service NZXWT’s new platform will provide and are delighted to be able to retain the partnership with them”.
Public Trust has about $14 billion in “asset under custody” held on behalf of 50 clients including five KiwiSaver schemes.