State Street has acquired a stake in Raiz, an Australian fintech platform that helps customers grow their wealth by helping them to save and invest.
The provider of investment servicing, investment management, investment research, and trading services to institutional investors worldwide has entered into an equity investment agreement to which it will acquire approximately 5 percent of Raiz’s share capital through a placement.
Launched in 2016, Raiz pioneered the ‘Round-Up’ concept in Australia, where everyday purchases are rounded-up to the next dollar and the difference is invested into a Raiz Invest account. With 9 diverse portfolios to choose from, users of the Raiz platform can invest in up to 75 of the most recognized stocks on the ASX, ETFs, Bitcoin, and the Raiz Residential Property Fund, from as little as $5. Products range from Raiz Kids to Raiz Invest Super with a product to suit every life stage.
Raiz to leverage State Street’s library of resources, insights, and trends
The strategic relationship will see State Street Global Advisors’ trusted brand and deep knowledge of markets come together with Raiz’s mobile-first platform.
Raiz helps Australian retail investors with micro-investments primarily in exchange-traded funds (ETF) and model portfolios. The new relationship will see Raiz and State Street Global Advisors work more closely together to create innovative savings and investment insights and education for customers as the Australian fintech will leverage State Street’s international library of resources, insights, and trends toward a broader array of financial literacy content and investment education tools.
State Street’s SPDR S&P/ASX 200 Fund is currently the largest single fund holding in the model investment portfolios provided by Raiz to its customers. The asset manager’s SPDR MSCI Australia Select High Dividend Yield Fund and SPDR S&P Global Dividend Fund are also available on Raiz.
“There are great opportunities for innovation in the Raiz product offering”
Yie-Hsin Hung, President and CEO for State Street Global Advisors, said: “We are excited to expand our relationship with Raiz, a proven fintech leader in bringing important tools and educational resources to investors across the region. This strategic investment reinforces our strategy to join forces with wealth firms who share our commitment to help investors globally manage their investments and savings for retirement.”
Brendan Malone, Managing Director and CEO at Raiz, commented: “From learning about investments in ETFs through to more complex investment strategies such as superannuation retirement portfolios, we look forward to continuing our relationship with State Street Global Advisors on educational tools for all stages of a customer lifecycle.
“Raiz’s Australian customers, who range from beginners to experienced investors, will benefit significantly from the global resources that we can provide through this strategic arrangement. Between Raiz’s technology and State Street Global Advisors’ global investment capabilities and markets expertise, there are great opportunities for innovation in the Raiz product offering.”
Meaghan Victor, Head of Intermediary Asia Pacific at State Street, said: “This investment is a natural extension of the successful relationship we have enjoyed with Raiz since launch in 2016. Both of us share a passion for making financial tools and solutions accessible to all investors, and through this strategic arrangement we will leverage our respective capabilities to help Australian investors plan and save for retirement.”
