Why you should invest, not save, for your kids
While parents want to be able to provide the best for their kids, it’s hard to save for their little ones’ futures when interest rates are slumped at historic lows. Even with regular deposits, cash attracting just 0.5 or 1 per cent interest in a savings account might not amount to all that much. However, if you choose to invest for your kids, you could potentially net each child an extra $35,000 by the age of 21, according to Patrick Garrett, chief investment officer at robo-adviser Six Park. “There’s a growing awareness of the power of compounding interest but also a willingness to consider investment portfolios because most people who are […]
US firm triples its stake in Radium
Rocketing growth at a fledgling Perth fintech has prompted its US financial partner to buy a bigger slice of the firm under “a multimillion-dollar” deal. New York-based Brevet Capital has tripled its stake in Radium Capital to 50 per cent by buying stock from the WA group’s seven other shareholders led by company promoter Tony Brennan. Mr Brennan’s son David founded Radium with schoolmate David Weir nearly two years ago to give cash-poor companies quick access to the Federal Government’s research and development rebate. While others also operate in the same space, Radium believes it is differentiated from those rivals by its sole focus on the R&D rebate, proprietary technology […]
Afterpay buy now pay later rival Zip favoured by investor Philip King of Regal
Shares in Afterpay Touch have doubled in the past 12 months as Millennials lap up its buy now, pay later solution to spending and now some investors are hoping its major rival, Westpac-backed payment provider Zip Co, can follow that lead. Regal Funds Management chief investment officer Philip King describes Zip as a “high-growth company that is in the sweet spot of moving from start-up losses to very high earnings growth”. Regal holds 6.4 per cent of Zip’s shares, which makes it the third largest shareholder after the company’s co-founder and chief executive Larry Diamond and Westpac. The renowned fund manager used to own Afterpay, but now prefers Zip on […]
SelfWealth launches ETF
Online broker SelfWealth will launch a new ETF targeting self-managed super funds. The SelfWealth SMSF Leaders ETF is due to launch on the ASX this financial year and listed under the ticker code SELF. It is pending regulatory ASX approval. ETF Securities Australia and its parent company ETFS Capital are backing SELF by providing $100 million in seed funding. ETF Securities Australia will act as the responsible entity. SelfWealth chief executive Andrew Ward said SELF will be constructed using data from the best-performing investors among 50,000 SMSF portfolios. It will offer clients “a high-performing investment asset that complements portfolios constructed using the SelfWealth platform, and delivering a new revenue stream […]
Capify secures $135 million from Goldman Sachs for SME loans
Capify, a leading Australian alternative SME finance provider has secured a $135 million credit facility from Goldman Sachs Private Capital (“Goldman Sachs”) to support its future growth plans and provide working capital to thousands of Australian SMEs over the coming years. The Sydney-based fintech company will use the new facility to accelerate the growth of its lending business to Australia SMEs through its business loan and merchant cash advance (MCA) products. Capify has been active in Australia since 2008, executing over 7,500 transactions for Australian SMEs seeking business financing and most recently celebrated its ten-year anniversary. “This is a landmark achievement for Capify and we are very pleased that we […]
Australia’s first academy launches for businesses wanting to ride crowdfunding wave in 2019
Australian businesses will learn how to become crowdfunding champions – thereby helping to avoid an emerging ‘credit crunch’ – as part of a government-supported private academy to be addressed by two international experts. Sydney-based ReadyFundGo has launched a crowdfunding academy – which is the first of its type in the country – to operate across Australia during early February. The academy has received funding from the Australian Government’s Entrepreneurs’ Programme. The academy launch comes amid evidence that 2019 will be a turning point for the business crowdfunding sector, thanks to new regulatory changes, credit shortages and rising interest in the fundraising option. In October last year, the Australian Government commenced […]
More investors taking on smart beta ETFs
Research from VanEck reveals that investors are increasing their allocation towards smart beta ETFs, as opposed to market capitalisation and active strategies. Smart beta cumulative net flows as a percentage of total flows has grown from 11.7 per cent to 21.7 per cent between 2016 and 2018, according to VanEck’s ETF IQ Scorecard for December 2018. “By strategy, smart beta ETFs are gaining in popularity, now accounting for about one-quarter of all inflows at $1.6 billion over the year to date, as investors seek targeted investment outcomes and wealth-building strategies not offered by traditional ETFs, which track market capitalisation indices,” VanEck said. Meanwhile, net flow allocation to active exchange-traded products […]
ANZ Bank buys into online mortgage broker Lendi
ANZ Banking Group has taken a strategic stake in online home loans platform Lendi. Street Talk understands ANZ paid close to $40 million for a minority stake, to become Lendi’s second largest strategic shareholder behind fellow Australian financial services giant Macquarie Group. Importantly for Lendi, which has 37 banks and lenders on its open home loans platform, the business will continue to be run independently and at arms length to its strategic investors. ANZ will not be given a board seat, as consistent with Lendi’s treatment of Macquarie and other strategic investors including Pepper. It is understood ANZ agreed to write the cheque after spending much of last year talking […]
