Wealth Technologies has added more than $200 million to funds under administration (FUA) after landing its first offshore client with two local advisory firms also switching to the NZX-owned investment platform from FNZ-based systems.
In a boost for the NZX platform ambitions of reaching $40 billion in FUA by the end of next year, the $200 million Cook Islands National Superannuation Fund (CINSF) has contracted Wealth Technologies via the NZ-based Public Trust for a range of administrative duties including insurance, pension and investment member functions.
As well as the multi-purpose member administration, the CINSF investment team would be able to “load trades, access up to date valuations and provide live member, fund and life fund portfolio data to their actuarial team”, according to a statement.
CINSF hired Wealth Technologies sister firm, Smartshares, last September as its new investment manager.
But the Cook Islands coup will require the platform provider to tweak the software in line with CINSF needs, particularly to deal with insurance and pension services.
Damien Beddoes, CINSF chief, said in the release that the fund was working with Wealth Technologies to “design and implement better processes for managing our members”.
Wealth Technologies was “also working collaboratively with our existing vendors”, Beddoes said.
Lisa Turnbull, Wealth Technologies head, said the development for CINSF could also broaden the potential client base for the NZX platform.
“We look forward to working with CINSF to develop their service and expect other opportunities to arise following the completion of this new functionality,” Turnbull said.
The CINSF win, too, comes as Wealth Technologies booked a couple of more traditional NZ financial advisory clients: Ethical Investing, and Yovich & Co.
Ethical Investing, co-founded by NZ financial industry veteran Peter Lee, was previously on the FNZ-based Consilium platform. Whangarei firm, Yovich & Co, also shifts to Wealth Technologies from a FNZ system.
All three new sign-ups will use the NZX platform for both admin and custody.
As at the end of May, Wealth Technologies reported almost $10.7 billion in FUA but the NZX indicated last year it was on track to hit $40 billion by the end of 2024.
NZX chief, Mark Peterson, told investors last November that Wealth Technologies was expecting a “substantial new client” to join the platform in May but it is understood that transition is facing further delays.
The NZX also confirmed late last year it was seeking a “partner” to help grow Wealth Technologies.