Raiz sees growth as FUM nears $465m
Raiz Invest Limited (ASX: RZI), Australia’s largest, mobile-first financial services platform, has reported active (paying) customers and total funds under management (FUM) update for the month to 29 February 2020. Total FUM now sits at $464.67 million.
Raiz Invest CEO George Lucas says, “RAIZ is well placed to manage the volatile market conditions with 66% of revenue being generated from the $2.50 a month management fee from active customers, 14% of revenue coming from fees related to funds under management, and the rest from other income, advertising and netting.
“In a period of heightened market volatility, this revenue diversification ensures Raiz is in a stronger position compared with businesses that only generate income from fees related to FUM. The decline in total FUM in February was significantly less than the 8% decline in the ASX200.
“This was assisted by the increased propensity of customers to switch between portfolios, for example, from Aggressive to Conservative, instead of withdrawing their funds, reflecting the increasing maturity of those using the platform.
“The Company continues to be well funded to execute its strategy following the $7.5 million capital raising that was completed in November 2019. During the last quarter of calendar year 2019 Raiz generated positive operating cash flow and held $12.2 million in cash plus term deposits at 31 December 2019,” said Mr Lucas.
