Platform ponders advice potential

A new platform giving New Zealanders low-cost direct access to US listed companies and ETFs has plans to include advice for investors.

Wednesday, October 3rd 2018, 6:00AM

Kiwi Wealth’s new platform, Hatch, allows investors to access 2700 companies on the YSE and NASDAQ and 450 ETFs.

They can also buy fractions of shares, enabling access to more expensive stocks.

At the moment the platform is aimed at direct investors but general manager Kristen Lunman said there was scope to expand the service.

She said there had been interest from fee-only advisers so far but Hatch had discussed how it could give investors the opportunity to speak to a human adviser.

It could work towards having its advice team on hand to provide support, he said. “It’s something we’ve talked about but not fully scoped out.”

The next stage in its development would be categorisation, allowing investors to focus on the types of stocks they were interested, she said. From there it could look to expand to robo options based on an investors’ risk and timeframe. “Then if people come in and feel overwhelmed we can add the advice component.”

She said Hatch had 900 sign-ups in the first 72 hours.Early users were likely to be motivated investors who wanted easier access and diversification – but about 70 per cent already worked with an adviser in some way, she said.

It operates with a brokerage fee model. Investments in full shares are $8 per transaction and fractions of shares $3. It offers forex at 80bps but Lunman said it was looking to cut that fee.

“Hatch’s low-fee structure and simple-to-use digital interface empowers the self-directed investor to action their own investment decisions. There’s no minimum investment required, and the fractional investing option gives investors the opportunity to own a small piece of highly priced company shares—and benefit in a small way from their success.”

Adviser Sonnie Bailey, of Fairhaven Wealth, welcomed the new platform.

“It’s exciting that options like Hatch this are coming on to the market to support Kiwis who are engaged with their own financial affairs.

“Hatch looks really promising. There’s a good chance I’ll direct clients to the service.”

Tags: investment