The NZX-owned investment platform business has popped above $10 billion in funds under administration (FUA) with an end-of-year rush of clients and market growth adding almost $3 billion to the pot in November.
Figures released last Friday show NZX Wealth Technologies held about $10.8 billion at the end of November compared to $7.9 billion just 30 days before.
Lisa Turnbull, NZX Wealth Technologies chief, said the FUA surge followed the arrival of three new “large-scale” customers to the platform “along with growth from existing clients”.
Turnbull said the fresh NZX platform clients include the previously reported advisory business, Stuart Carlyon, as well as two as-yet anonymous firms.
Stuart Carlyon joins NZX Wealth Technologies as a “custodial platform partner”, she said.
In a statement, Stuart Carlyon director, Mark Patton, said: “NZXWT has a strong team with talented and experienced people, and we know their capability well. We see benefit from future platform enhancements which, in turn, will help us continue meeting our ever-evolving business needs and keep our clients happy.”
Since purchasing the platform formerly known as Apteryx in 2015, the NZX has invested heavily in the technology, rolling out an updated version a couple of years ago.
As well as foundation (and largest) client, Craigs Investment Partners, NZX Wealth Technologies has since added several broker-type groups – including JB Were and Hobson Wealth – as well as advisory firms.
The NZX platform also hired long-time Craigs Investment Partners head of client services, Stephen Jonas, as its inaugural chief operating officer this September.
In its most-recent strategy update, the NZX confirmed a target for Wealth Technologies of between $35 billion to $50 billion in funds under administration by the end of 2023.
Turnbull said while no further clients would board the platform this year “NZXWT has plans in place for further growth in 2022 and beyond”.
The November NZX statistics also show the group’s fund business – comprising Smartshares and SuperLife – saw assets under management close the month at almost $6 billion: an extra $300 million to $400 million is expected to flow its way over the next couple of months as the default KiwiSaver transition plays out.