Date: 3 October 2017
InvestNow acquires RaboDirect’s Managed Funds product line
Wellington-based managed funds platform InvestNow has acquired the Managed Funds product line of RaboDirect, the specialist online savings business of Rabobank New Zealand Limited, following a robust vetting and selection process by Rabobank.
InvestNow founder, Anthony Edmonds, says the RaboDirect Managed Funds acquisition is a massive endorsement of the InvestNow direct-to-consumer fund service, which has grown funds under management to over $100 million since launch in January this year.
“The fact InvestNow has attracted more than $100 million under management in less than eight months clearly shows the New Zealand market is ready for a modern direct online fund service,” Mr Edmonds says.
“RaboDirect pioneered the concept of direct managed fund sales in New Zealand and InvestNow is well-placed to take over what RaboDirect have developed given we share the same underlying products on the platform, as well as strong historical management links.”
“We are exceptionally pleased that RaboDirect chose InvestNow to take the business forward,” Mr Edmonds says “We see this as recognition of the compelling proposition the InvestNow platform offers existing RaboDirect Managed Funds customers.”
Daryl Johnson, Rabobank New Zealand CEO said InvestNow was a logical partner to work with.
“We are pleased that our Managed Funds customers will have the opportunity to continue managing their investment portfolios with InvestNow,” Mr Johnson said.
Mr Johnson said the decision to no longer offer the Managed Funds product line had been made in order to simplify the RaboDirect business model.
“As a fundamental part of Rabobank’s overall business in New Zealand, RaboDirect will continue to play a key role in raising deposits for Rabobank to lend to operators in the food and agribusiness sector,” he said.
Under the transition of the Managed Funds product line to InvestNow, current RaboDirect Managed Funds customers will be offered the option to have their fund holdings transferred to the InvestNow platform.
RaboDirect Managed Funds customers will have access to InvestNow benefits, including no entry fee on fund purchases (RaboDirect currently charges customers up to 0.75% on fund purchases), and an extensive range of funds to select from. The InvestNow platform boasts all of those funds currently offered by RaboDirect, plus a range of additional funds and managers not currently offered by RaboDirect, including the increasingly popular passive funds provided by Vanguard and the NZX-owned Smartshares.
Mr Edmonds says that “InvestNow clients are continually giving us feedback that they love how we don’t charge any administration or transaction fees, coupled with being able to invest as little as $250. Our clients range from kids who have had accounts set up for them by their parents, through to large family trusts with millions of dollars.”
The acquisition excludes the Cash Advantage Fund and Term Advantage Fund holdings of RaboDirect customers.