Don’t look back in anger, a review of 2020’s big tax stories", Follow auction results in our searchable database, even passed-ins, The smart & simple way to send money overseas at better rates than banks, Subscribe to our daily Banking & Finance email for senior finance professionals, Implemented Investment Solutions (IIS) - a Wellington-based specialist investment management company founded by Anthony Edmonds, Trade Me (16%), Sharesies co-founders Sonya Williams, Brooke Roberts, Leighton Roberts, Martyn Smith, Richard Clark, Ben Crotty, and 26 other shareholders, Fees paid by fund managers for listing funds, Fees paid by users and fund managers for listing funds, 110 funds managed by AMP Capital, Antipodes, ANZ, Devon, Elevation Capital, Fisher Funds, Harbour Asset Management, Hunter, India Avenue, Legg Mason, Milford, Mint, Morphic, Nikko, Pathfinder, Platinum, Russell Investments, Salt, Smartshares, Vanguard, 26 funds managed by AMP Capital, Pathfinder, Smartshares. You always hear about the successes and never the failures. Putting money into your IB account (or withdrawing it) is just a simple bank transfer, which costs nothing. You’d be better off gifting someone cash to top up their Sharesies account by bank deposit! In fact- they have so many funds that sometimes it’s hard to know which funds to invest in. Isnt that a quote from Morningstar on 16 may this year, referring to forecast earnings, in which case not from the annual report. Sharesies charges a monthly subscription fee if your portfolio is worth more than $50. I’d like to see annualised returns reported. Sharesies is soon about to start offering fractionalisation by enabling investors to buy parts of shares/units of companies and funds listed on the NZX. Launched in 2017, Sharesies has around 60,000 users and over $60 million invested. InvestNow also offers ANZ, BNZ and SBS Bank term deposits. I have checked the figures and apparently they recorded a loss last year of very nearly a quarter billion (241 million), is that not right? Sharesies offers half price account fees for under 18s, but InvestNow still wins with their zero account fees. Shareholders spend all their time worrying how they are doing and whether the Dow or FTSE has crashed overnight. It has also been granted a robo-advice exemption by the FMA, so could in the future start offering personalised financial advice online. I recommend that you take it up the the journalist that wrote this article:https://www.nzherald.co.nz/hawkes-bay-today/business/news/article.cfm?c_... "He said that by the eighth anniversary of its listing, NZX had generated a total return to shareholders of 535 per cent, or 24 per cent per annum. There is a reason that they are high yield, unsustainable is a word that springs to mind. They also offer more than 35 funds, some of which are Vanguard funds mediated through SmartShares. Like InvestNow, you will pay fund management fees which ranges from 0.30% per year for the Smartshares Global Aggregate Bond ETF, to 1.30% per year for the Pathfinder Global Water Fund. The catch is that all of Hatch’s offerings are listings on the New York Stock Exchange and Nasdaq. Pak’nSave vs Countdown. It’s not cheap at all, particularly for smaller balances. I can't find anything written up, but maybe I've missed it. Just as I will not convince you to go big in property. Why I started using Sharesies (NZ-based Investment Platform) + … Add: The Superlife management fees of 0.49% … ...no, but I have dropped a big bag in the last 6 months..too early in hindsight, but I do expect a major blow off. Want to retire early? If my tenant decides to leave, I have to find someone else. Your Sharesies Wallet. Owned by Wellington based Implemented Investment Solutions, InvestNow launched in 2017 and now has over 13,000 users, with over $300 million invested through the platform. Unfortunately InvestNow only updates the data on their Performance tab monthly. I decided to look at data instead of articles that may be pushing forward inaccurate data. And with Kiwi Wealth behind us, you know Hatch is here for the long haul. Your money is invested in a range of cash, shares and bonds to match your risk tolerance and time horizon. Sharesies only has two other funds available in addition to the Smartshares ones, while Invest Now has 73. They have a wide range of shares and ETFs to buy. Article about Stake which has the same US broker DriveWealth by the looks as Hatch. They also offer more than 35 funds, some of which are Vanguard funds mediated through SmartShares. Both poor examples." How to survive the financial stress of Christmas. I split my $50 high risk funds and made minuscule returns. I sleep easy too, thanks for your concern. Quick further comment ~ the AUM values of these platforms is absolutely miniscule. There are a few more forms if you're setting the account up under a family trust, but it's not too bad. On InvestNow, this fee ranges from 0.20% per year for the Vanguard International Shares Select Exclusions Index Fund, up to 2.75% per year for the Fisher Funds Property & Infrastructure Fund. Keen to start building your investment portfolio with Sharesies? We want someone with $5 to have the same investment opportunities as someone with $50,000. Below that it is free. Meanwhile Sharesies charges annual or monthly subscription fees for its services (on top of fund fees). That, and changing how share assets are taxed, i.e. For example, it would be awesome if I didn’t need 2FA to log in, and only needed 2FA to buy/sell funds and make withdrawals. Brokerage fees make transacting smaller amounts relatively expensive. Investing in individual companies vs funds – what’s better? While Hatch’s interface is clean and user-friendly, the sheer number of funds and companies it offers lends itself towards investors who know what they’re after. That would be ideal to mix with those Vanguard funds to create a balanced portfolio. … If you'd like to sign up and give it a go, please click on the following link to help with the production of this podcast Giving the person with 1 cent the same opportunities as the person with $1m is one of the foundation principles used by the founders of Sharesies to bring their product to the market. If you invest in a Smartshares ETF on Sharesies, and the sharemarket is open (normally 10am-4:45pm on business days), your investment order is usually processed and settled almost immediately. Sharesies is available for anyone who is 16+ years of age, an NZ resident, and has an NZ bank account. The exception is if you’re investing in any of the Australian Unit Trusts on InvestNow – you may have to complete a tax return for these as they are overseas investments. Your guide to investing in shares, bonds, funds, and peer to peer lending in NZ, How to choose which fund to invest in on InvestNow and Sharesies, Sharesies vs ASB Securities and Direct Broking. Trading fees are reasonable and they don't charge custodial or management fees at all, unlike some other international share trading platforms. Sharesies vs InvestNow vs Smartshares: Available markets Each of these providers offers access to a different range of financial products. I’ve compared the cost on those ETFs on… If you're already a Supporter, please use the Supporter Login option here. Investors should be mindful of not taking platforms' ease of use as a cue to side-step doing their necessary due diligence. With Sharesies, all dividends/distributions are paid into your wallet and must be reinvested manually. If you call me ignorant you are not very aware of many peoples perceptions of the sharemarket. This is low considering investing in funds directly through a fund manager can often require anything from $500 to $2,000, or even $500,000 AUD in the case of the Vanguard Funds. Thanks Jenee for the informative article and thanks to the interest.co common taters for the educative discussion. It plans to charge 0.5% for orders up to NZ$3000 and 0.1% for any amount over NZ$3000. It's quick to sign up. You clearly haven't read their annual report. I'm trying hard to not use the "p" word. Does your share investing take much time each week? ..or NCM.AX. In my opinion index funds are for the really young and the super old. Below that it is free. I like Sharesies. Which has been more profitable for you, the shares or the investment property mfd albeit that the property gives you more stress? It's really for companies over $US1 billion market cap, but there are some quite a bit lower than that if you know what you're looking for. You must really like the taste of your own feet.. Harmos said that during the period of Mark's leadership the organisation had grown from a 2002 position of revenues of $10.4 million, a loss of $500,000, no dividends and a valuation at $15 million, to its current position of operating profit approaching $30 million, dividends this year of $17.24 million and a market capitalisation of around $288 million. rather than being able to place a specific bid, but I could be wrong. InvestNow also offers funds that are distributed and owned by Implemented Investment Solutions (InvestNow’s parent business), such as the Russell, Legg Mason, and Hunter funds – therefore providing the aforementioned exposure and accessibility benefits to their parent. Create a SUPPORTER account with no ads here. The difference between investing in Term Deposits through InvestNow is that you don’t have to have an account with the bank you want to invest in, making the process extremely easy. The great thing with sharesies is that it gives you access to buy investments from as little as $5 (compared with InvestNow’s $250 minimum, or $50 when recurring). There are heaps of great rivalries around NZ and the world, and InvestNow vs Sharesies is one of them when it comes to the NZ investing scene. Opinion on InvestNow’s user interface is somewhat mixed, with this type of comment being somewhat common on social media sites: I went to InvestNow but their website was confusing to navigate. Host name: 104.18.5.170. They have no platform fees and make theirs by charging the fund managers a fee for being available on their platform. Withdrawing your cash is painless with both platforms, and in my experience both had the money in my bank account within a business day. Sharesies only has two other funds available in addition to the Smartshares ones, while Invest Now has 73. The great thing with sharesies is that it gives you access to buy investments from as little as $5 (compared with InvestNow’s $250 minimum, or $50 when recurring). Agreed. 0. I got the impression they will only offer market price (or even end of day market price?) Both platforms make their money by charging fund managers for hosting their funds. Your first sentence covers the basics quite well. CrashAndBurn: I have some term deposits maturing next month and would like to give investing in shares a try as the current rates with banks are not good (my current TD is at 5.5%). InvestNow makes money by charging fund managers to have their funds listed on the platform (I suspect this is through a commission). The major goal of investing is to generate investment returns, and this fee is definitely a big drag on that – If you invested $500, over half your potential annual return is eaten up by the subscription fee! This means investors can shop for the best rates, without opening accounts at numerous banks. You can set up a Kids Account for someone under 18, but it will need to be linked to an adult’s account. This makes it easier to achieve diversification. Can you tell me which one that would be? Superlife comes out slightly ahead, thanks to a lower annual administration fee of $12, compared to $18 for Sharesies. Legacy investment services like ASB securities and Direct broking have high fees, and Stake is not regulated under the NZ markets authority. Update (4 January 2020) – Added details about dividend reinvestment options. InvestNow requires 2-factor authentication (2FA) when you log in to the platform – in addition to entering your email and password, you also need to enter a six-digit code sent to you as an email or SMS. Other features worth noting are that Sharesies and InvestNow offer investors the option of making automatic payments, which is particularly handy for those with longer-term investment horizons who want to use their investments as savings vehicles. What happens to your money if InvestNow or Sharesies go bust? The psychological reinforcement that the app provides will benefit me more than the $30 per year. They allow you to invest in large range of funds in once place, and manage your investments through their online portals at anytime of the day or night. You may call that pathetic. Tourism Holdings Dividend CPS 26.70 Dividend yield (Net) 7.42%. What forms of performance reporting are offered by sharesies and hatch? There are still bad points about the interface. steve2222: This is quite a good blog for comparison of NZ based share fund offerings eg Sharesies… For some, property investment is what they are comfortable doing. Until this discrepancy is addressed our financial markets, particularly the equity and bond markets will continue to lag as an investment choice for retail investors. Sharesies Coupon - couponsbuy.net. Helpful info on how to put money into your Sharesies Wallet and how to get money out. Please help us keep it that way by allowing your browser to display ads. Yes, DriveWealth doesn't hold your securities. I spend a little time each day scanning the announcements and keeping a vague eye on the market, generally in breaks at work. Having the minimum auto-invest order at a very low $5 makes Sharesies significantly more flexible than InvestNow for regular investing. InvestNow announced they added 7 SmartShares ETFs into their investment platform. You will never convince me to waste my time chasing (pathetic) sharemarket gains. Yes I do but I set up the account when I was in HK and it is there I retain the a.c. MTP, I have an Interactive Brokers account, which I set up from NZ about a year ago, so that I can trade US stocks and ETFs. I really like this idea, as it’s an elegant way of helping a friend or family member build their investment portfolio. BTW, this time span includes the largest world-wide recession in many decades, which definitely negatively affected the share market returns so those may be a bit suppressed in this comparison. I didn’t expect to write almost 3,000 words on this topic, but it turned out there were more differences than I originally thought! If the operational earnings are so high (2018 100 mil approx) and the div yield so delicious then why is the stock value and with it the shareholders wealth plummeting still? You can set up a Kids Account for someone under 18, but it will need to be linked to an adult’s account. Fund managers also often require minimum investments in the tens, if not hundreds, of thousands of dollars. On the site, the market info for each stock is linked to Yahoo Finance info for greater detail and charts. I think the interface’s biggest weaknesses are the lack of a mobile friendly interface, and how it makes you download a fund’s Product Disclosure Statement every single time you place an investment order – very annoying! Just as in housing, one gets the best result when buying after a downturn instead of when buying at the end of a large run-up in price. What does it take to get started on each platform? They allow you to invest in large range of funds in once place, and manage your investments through their online portals at anytime of the day or night. I can tell you I did pick a dog and realised a ~50% loss, but other stocks more than made up for it. The balance sheet can certainly support the forecast 60% payout, given comfortable net debt/EBITDA of 0.8 especially as the no-moat-rated group is still forecast to generate around NZD 70 million in free cash flow a year. InvestNow’s regular investment plans allow you to invest a minimum of $50 per fund weekly, fortnightly, monthly, quarterly, or six-monthly. How long to top up your Sharesies Wallet. This starts at zero for balances of $50 or under, then $1.50 per month for balances from $50 to $3,000, and over $3,000 it’s more cost effective to pay the annual fee of $30. They’re also based in Wellington, and are owned by a variety of shareholders – the largest being Trade Me who own 15.64% of the platform. They have gone from $2-3 a share in 2016 to around $9 today, pretty impressive. Sharesies offers far fewer funds, but does offer ETFs and, unlike InvestNow, investors can hold individual company shares all on the one platform. 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