Here are the custodians for a few different New Zealand fund managers: Like with Fund Platforms, the custodial arrangements mean that the Fund Manager doesn’t handle your money, nor do they own the underlying assets (e.g. Once you have found an investment you wish you invest in, simply click ‘Invest’. Brooke also worked at Xero where she learned about technology and how it can revolutionise the way businesses work. If the provider is offering something too good to be true, it probably is. This system is scrutinised every year, so there are minimal chances of risks. If the custodian cannot transfer your assets to you, then this should be an alarm bell. 12 articles in this collection Written by Renae Williams and Natalie Bryant. Making investing easy. A unique way of saying that you will share something with someone. Section 7 of each PDS should show who the fund’s custodian, supervisor, and auditor are. Also in InvestNow’s case, the Custodian (Adminis) is totally independent and unrelated to the Fund Platform. So don’t let this risk put you off from investing with a reputable provider. The audit includes assessing whether the custodians have the right procedures and controls in place to accurately process transactions, keep records, and safeguard investors’ money. Ready to sign up? Fund Managers/ETF issuers are the organisations responsible for managing the funds and ETFs you invest in. Finally, I have just scratched the surface of what the players in our financial markets have to do to comply with regulations, and keep your money safe. Essentially it is a case of a platform going bust, and pulling their customers down with them. In comes Sharesies, the perfect platform to help anyone build an investment portfolio without a minimum buy-in, or all the complicated jargon. I'm sure Sharesies are pretty safe. They can’t do anything with your money or investments without you telling them to. Every Thursday, we unpack what's been happening in the news and the New Zealand share market, explain what it means for you as an investor, and answer your questions about money, investing, and Sharesies as a business! So, is sharesies.nz safe? The underlying assets (e.g. Here’s some things you can do to see whether an investment provider is legitimate: Reputable platforms and fund managers have robust controls and measures in place to keep your money safe. It has been granted a robo-advice exemption by the Financial Markets Authority, so may in the future provide users with personalised financial advice online. Therefore this money can’t be used by the platform to run their business. Custodians won’t protect you from losses arising from poor investment choices or your company going bust, nor will holding the shares in your own name make a difference. The share registry (record of who holds the shares, and how much they hold), would show the Custodian (Adminis) as the owner of the shares: The Custodian keeps a record of who the beneficial owner of their holdings are: When you deposit money with the Fund Platform, the money goes straight from you to the Custodian. Investing in individual companies vs funds – What’s better? While custodians are not a bulletproof solution, It demonstrates the importance of choosing a platform that does not handle your money and uses an independent custodian. Sharesies was originally founded by Brooke Roberts in 2016, and was first registered on the New Zealand Companies Register in May 2017. You can either top up using a bank deposit, or using a debit or credit card. The liquidation of the fund’s assets, with the proceeds returned to investors as cash, or. Steve Hansen bought 100 units in the Smartshares NZ Top 50 ETF through InvestNow. This includes using custodial arrangements to keep investors’ money segregated from their own business, and having auditors and supervisors assure they are acting in the interests of their investors. According to their website, Sharesies has six co-founders. In theory yes – your money should be safe. Read reviews of the service in the news, on blogs, or on social media. If you have $50 – $3000, it’s $1.50 per month. If you have less than $50, it’s free. While this is bad for business, this has also created a new opportunity for people looking at building an investment portfolio. Managing your Sharesies Account. Sharesies.nz informations. Cash deposits, and investments in non-listed funds are held by custodian Sharesies Nominees Limited, while investments in listed funds and shares are held by NZX owned New Zealand Depository Nominee Limited. Smartshares, Simplicity and Sharesies are just some of the options for index fund investing. Sharesies does however provide a very good platform, that is arguably easier to use than its competitors platforms. Verify your address. Then there is also information about the potential fees that come with the fund or company charges. There are laws and rules in place to make sure that we look after your money and investments. Subscribe to get new Money King NZ articles in your inbox. Sharesies is expensive for beginners Your account is temporarily locked because we need some more information from you. The platform cannot run away with your money or use it to pay their creditors, nor is the value of your funds or shares affected – after all, it is not the Fund Platform that determines the value of your funds and shares. However, Sharesies (beta) got a fantastic user interface and make investing as easy as shopping online. There is also an annual option for $30 per year. Halifax Investment Services was an investment provider that allowed people to trade shares on a variety of platforms. This article will provide an overview of how New Zealand investment providers look after your money, looking at a few scenarios including what happens if a Fund Platform or Fund Manager goes bust, and how you would get access to your money if the worst was to occur. Inside the Sharesies app, you will have access to information about the company, the price history and a risk and return indicator. Sharesies charges a monthly subscription fee if your portfolio is worth more than $50. Learn from other people. For example, InvestNow’s Custodian Adminis Limited holds investors’ money in Adminis Custodial Nominees Limited. In order to best achieve this goal, it must first build a work environment that empowers its employees. Founder Brooke Anderson said Sharesies was a wealth development platform, not a wealth management one. The Fund Manager then tells the Custodian what to do with the money, for example, which shares and bonds to buy or sell in order to make up the assets of the fund. I also haven’t covered how international investment providers like Vanguard or Hatch handle investors’ money. Sharesies’ custodial arrangements are less robust in this aspect, as their custodian Sharesies Nominees Limited is related to the platform, being fully owned and sharing the same directors as Sharesies Limited. Let’s get you started. It is advised to do thorough research before investing in your chosen fund or company, as they may fall into different risk categories. The funds Sharesies offers invest in shares. It makes me want to keep putting money into it. Managed funds, Exchange traded funds (ETFs) and Companies. Sharesies makes it easy to start investing—no jargon, no minimum buy-in, and all online. Once you have decided what you want to invest in, you can simply place your order within the Sharesies app. The content of this article is based on my personal opinion and should not be considered financial advice. The transfer of your fund’s management to another Fund Manager. Your order will then be placed. How long to top up your Sharesies Wallet. Custodians are also required to reconcile records of investors’ money daily. Cash deposits, and investments in non-listed funds are held by custodian Sharesies Nominees Limited, while investments in listed funds and shares are held by NZX owned New Zealand Depository Nominee Limited. Fund platforms like InvestNow and Sharesies provide a service through which you can buy a large selection of funds (and in Sharesies’ case shares in individual companies). Are they posting actively, and do the likes and comments on their page appear to be genuine? Log in Sign up. There is a cost to this though. They are not the cheapest in term of cost (they charge $30 annual admin fee) or the lowest investment requirement (Superlife can let you invest by $1). Your investments could be sold, and the proceeds returned to you as cash. InvestNow’s Custodian allows you to transfer ownership of an investment into your own name (this is subject to the Fund Manager accepting you onto their share registry). Sharesies is rolling out their trial run (a.k.a beta) investments options couple weeks ago. Below that it is free. For example, if InvestNow went out of business while owing tax to the IRD, the IRD can’t touch the funds held by Adminis Custodial Nominees Limited to claim back InvestNow’s unpaid tax. Sharesies have just celebrated their first birthday and up until this point I have resisted having a play around with their product. We treasure our customers and if you think that any of our content has issues that need addressing, please reach out to us and let us know. Your investment in Sharesies is as diversified as … Your money is safe, as it is held separately by the Custodian. Sharesies $1million Media Release. What if the Custodian itself were to go out of business? Sharesies do not allow off-market transfers out of their custody. shares and bonds) of their funds. Sharesies is a company that aims to create the most financially empowered generation through its products. To get access to your money in the case that the Fund Manager shuts down, the fund’s Supervisor would most likely facilitate either: In the case of a KiwiSaver fund shutting down, your money would always be transferred to another KiwiSaver provider. Could this service run away with my money? Host name: 104.18.5.170. IP: 104.18.5.170. Check the provider’s social media accounts. Written by Renae Williams Updated over a week ago Withdrawing money from Sharesies If you're wanting to get your money out of Sharesies. ( https://www.smartshares.co.nz ). You can read more about Sharesies’ custodial arrangements here. There are a few ways that Sharesies makes money. If you are completely new to share trading, also see this article about Building an Investment Portfolio in 2020. Here are the likely outcomes: An off-market transfer could be performed to transfer your investments out of the Custodian’s name and into your own name (and into your CSN in the case of shares). Right now investors’ funds are locked up as liquidation procedures are carried out, with investors facing a 7-15% loss in their investment. Brooke Roberts, Sonya Williams, Richard Clark, Martyn Smith, Leighton Roberts and Ben Crotty. You can either buy a share (or a fraction of a share) directly, or a fund. All NZX-listed exchange-traded funds (ETFs) and companies are held under Sharesies Nominee Limited’s name, and under … Once you have money in your account, it’s time to find a fund or company you wish to invest in. Yes, Sharesies is very safe to use. Enter the amount you wish to withdraw, your bank details and click Withdraw. Sign up. Instead they are held in the name of a Custodian, but on your behalf, with you as the beneficial owner of the investment. This would be the probable scenario if you hold the Vanguard funds on InvestNow, given most investors won’t meet the $500,000 AUD requirement to hold this fund in their own name. If the custodian went out of business (which in our case is Adminis) it would not impact on our clients’ assets. Sharesies allows people with a minimum of $5 to invest to put their money into Smartshares exchange-traded funds. If there are a whole pile of $10 sharsies trades that drive the SP up, is … Sharesies actually let you invest as little $5. We’ve gone and researched Sharesies and created this solid article for you! Just looking at the ad you can clearly see "Netflix shared account" Here is your answer: Really you have to ask if this is a Legit! They’ve improved access to investing by reducing cost, removing jargon, and making investing fun. How was Halifax unsafe? In addition, money held by the Custodian can’t be touched by creditors. For example, Sharesies Limited cannot use investors’ money held in Sharesies Nominee Limited to pay their employees’ salaries. Enter the amount of shares you wish to sell, then click “Sell Shares”. Come find out If I buy into Sharesies, am I buying a share on the sharemarket? Sharesies is a Wellington-based company with 28 staff, which creates a product which helps young people begin their investment journeys. Sharesies makes me want to know more about managed funds, about the macro economy. Sharesies' purpose is to financially empower the next generation by giving someone with $5 the same investment opportunities as someone with $500,000. Sharesome is an adult social media website founded in 2018 and based in Cyprus. In the scenario that you’ve invested in the shares of an individual company, and that company goes bust, you will unfortunately lose money – It’s the company itself that gives that company’s shares value. As a shareholder of a failed company, chances are you will be left with nothing but valueless shares, after the leftover money and assets of the company are used up to pay outstanding wages, taxes and other creditors. Sign up with this link, and you’ll get a bonus $5 in your account to invest! Funds are also independently audited. Recent examples of listed companies going bust in NZ are Pumpkin Patch, Wynyard Group, and CBL Insurance. An administrator (for example, Custodian Adminis, or the liquidator of Sharesies) would likely work to achieve the best outcome for investors. Sharesies Promo Code: Get $5 for free when you started with Sharesies here. While there were a number of questionable things that Halifax did, one major issue was that they directly handled clients’ money, rather than having it go to an independent custodian. If you have over $3000+ it is $3 per month. But I figure that they are still here after a year, the social media fan party has faded away and yet they still keep coming up in conversation. We have established that Custodians hold your money in the case of both Fund Platforms and Fund Managers. They can’t do anything with your money or investments without you telling them to. Common concerns include: Thankfully local investment providers have measures that help keep your money safe, many of which are required by strict New Zealand regulations. Join Sharesies' co-founders Sonya and Leighton—and some weeks, even a special guest or two! No matter where you put your money, whether it be at the bank, in shares, under your mattress, or in the casino, there is always going to be at least a little bit of risk – and no way to fully eliminate the risk. I've got their invitation recently and checked out their offerings. 🍍 | At Sharesies, we want someone with $5 to have the same investment opportunities as someone with $500,000. Or you could just invest in a fund to achieve instant diversification (as funds can potentially contain hundreds or thousands of companies) – InvestNow and Sharesies have plenty of them! Too many New Zealanders were priced out of investing, she said. Thanks for visiting Brownie Points, a New Zealand owned and operated website, Sharesies Review 2020: Easy NZ Investment App, 30 Sweet Things to do for Your Girlfriend, Transaction fees when users buy or sell companies, Rebates fund providers give for having their funds listed on Sharesies, Interest earned from the money in users wallets. New online investment platform, Sharesies has had $1million dollars invested through the platform, after just 8 weeks. Tends to encourage over complication, most people are best off with the single most diverse, cheapest, fund they can find. So what is the role of the fund platform?With the custodian handling all the money, what does the fund platform actually do? Before Sharesies, Brooke Roberts worked at Kiwibank managing their saving and investment portfolio where she learned a lot about hedging and share pricing. Think of it as a portfolio in your pocket. Anyone can have an investment portfolio. Get new investing articles in your inbox. If you’re investing in individual companies, that means you should buy multiple companies from different industries and different countries. The investments you buy through these platforms are not held in your name, nor are they owned by the platform. Accordingly we would transfer the custodial services to a new custodian. Sharesies is a simple to use investment platform that allows its users to manage their investment portfolio, from their phone. When you invest in a fund, your money goes straight to the Fund Manager’s Custodian. The InvestNow platform’s legal entity is InvestNow Saving And Investment Service Limited. Info on how long it takes for money to go from your bank account to your Sharesies Wallet. Founded by Sonya Williams, Brooke Anderson and Leighton Roberts, Sharesies is an online platform that aims to break down the barriers to investment, giving users access to investment opportunities – regardless of how much they’ve got to invest. [this] demonstrates that you can ultimately get ownership and take control of your own assets and investments. Shares allows you to invest in three different types of investments. Let’s take a look at who owns the investments that you buy through these platforms, and what happens if the platform goes out of business. Found this article helpful? But these are topics I hope to write more about in a future article. Investors’ money is held in a seperate legal entity from the Fund Platform, with investors being the beneficial owners of that money. This is a legal requirement and the system is audited every year. This would result in the platform continuing in operation as usual, apart from the platform having new owners. Investors’ money is never touched by the Fund Platform. One of the major signs, even including all around the world, is that the majority of stocks have significantly dropped in value since Covid-19 first hit. Again your funds are safe in this scenario because of the separation between the Custodian’s business and investors’ money. The answer to this is yes. Keen to start building your investment portfolio with Sharesies? Get $5 cash with my Sharesies … Close. This reflects that the custodial account they hold assets through (Adminis Custodial Nominees Limited) is a completely separate entity to their actual business. Brooke got together with her team of co-founders and decided to create a platform that was as easy as online shopping, and was fun. Sharesies is a very simple service that buys from the NZX Smartshares portfolio, but only a subset of them. The information should never be used without first assessing your own personal and financial situation, and conducting your own research. Do the provider’s management have experience in the financial services industry (check their LinkedIn profiles)? So what are the custodial arrangements that InvestNow and Sharesies use? When thinking about investing your hard earned money, it is understandable (and a good thing!) The Sharesies platform’s legal entity is Sharesies Limited. Invest to put their money into it s be friends on Facebook,,... 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