21 May 2023
Betashares to launch innovative PIE fund range for New Zealand investors
Leading Australasian fund manager, Betashares, today announced the upcoming launch of a range of New Zealand domiciled PIE funds.
The new funds will offer New Zealand based investors cost-effective exposure to a range of Betashares’ innovative investment strategies within a tax-efficient PIE structure. Initially, Betashares will provide access to five index-tracking strategies covering Global and Australian equities as well as Australian fixed income. The new products are based on some of the most popular investment methodologies in Betashares’ Australian product range which collectively hold over A$7.5 billion (NZ$8 billion) between them.
The move by Betashares marks the first time the fund manager will have launched investment solutions outside of Australia and follows its 2021 decision to set up a local office in Auckland to help service NZ investors, financial advisers, and institutional investors.
Betashares is in the process of building out a local team, with the initiative currently led by Betashares Executive Director – Institutional & Adviser Services, Mr Vinnie Wadhera. Mr Wadhera has been with the Firm for over a decade and has been involved in servicing NZ-based financial advisers and institutional investors since joining Betashares.
To complement the launch of the New Zealand fund range, Betashares will also launch new and comprehensive support services for NZ financial advisers including Practice Development service modules. The Betashares practice development initiative has been strongly adopted by Australian-based financial advisers since its launch earlier this year and is expected to be equally popular amongst NZ advisers.
Betashares CEO, Mr Alex Vynokur, said Betashares is proud to be making a range of innovative investment strategies available to NZ-based investors and their advisers within a familiar and tax-efficient PIE structure.
“We’ve been actively servicing New Zealand clients since our inception and so the launch of locally domiciled funds is a natural extension for us. Betashares has been at the forefront of innovation in the Australian funds management industry since 2010, and we believe the time is right for us to take our involvement in New Zealand to the next level,” Mr Vynokur said.
“As a business, we’re highly focused on growth in the next decade of our journey. We believe the New Zealand market is currently underserved in terms of high quality and cost-effective investment options and we’re excited to address this opportunity by broadening the range of innovative investment solutions available to Kiwi investors,” Mr Vynokur concluded.
Betashares’ range of PIE funds are expected to be available on selected investment platforms from June 2023. Wholesale investors may also be able to make investments directly into the funds.
Betashares initial PIE Fund range
Betashares will launch the following funds on NZ-based investment platforms:
Betashares Global Sustainability Leaders Fund – a diversified portfolio of global (ex-Australia) ethical companies. The fund will track an index that contains robust positive and negative ethical screens that exclude companies with direct or significant exposure to fossil fuels or engaged in activities deemed inconsistent with responsible investment considerations. The equivalent Australian fund currently holds approximately A$2.4 billion (NZ$2.5 billion) in funds under management.
Betashares Australian Sustainability Leaders Fund – a diversified portfolio of Australian companies that have passed positive and negative screens to exclude companies with direct or significant exposure to fossil fuels or engaged in activities deemed inconsistent with responsible investment considerations. The equivalent Australian fund currently holds nearly A$1.3 billion (NZ$1.4 billion) in funds under management.
Betashares Australia 200 Fund – a portfolio comprising the largest 200 companies by market capitalisation listed on the ASX. The equivalent Australian fund currently holds nearly A$3 billion (NZ$3.2 billion) in funds under management.
Betashares Global Quality Leaders Fund – a portfolio of 150 global quality companies (ex-Australia) as measured by return on equity, debt-to-capital, cash flow generation ability, and earnings stability. The equivalent Australian fund currently holds over A$340 million (NZ$361 million) in funds under management.
Betashares Australian Investment Grade Corporate Bond Fund (NZD hedged) – a portfolio of senior, fixed-rate, investment grade Australian corporate bonds. The underlying strategy on the ASX (as used within the Betashares Australian Investment Grade Corporate Bond ETF) currently holds over A$500 million (NZ$531 million) in funds under management.
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