Why micro-investing platform Raiz is now targeting SMSFs


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The micro-investing platform is targeting SMSFs with its custom portfolio option, giving members more control over their portfolio allocations.

The recently launched custom portfolio option is now available to SMSFs and allows users to build their own personalised portfolio by choosing the target weighting for up to 14 ETFs and Bitcoin.

Raiz Invest Australia chief executive and group chief operating officer Brendan Malone says the expansion into SMSFs came from member and adviser demand coupled with the opportunity in its 30,000 clients aged 50 or over.

raiz targets smsfs

"People think of Raiz as a millennial tool but it's not. It's cost effective and it's easy to use. We do the reporting, give a daily contract, a monthly statement and a tax statement," Malone says.

Malone says Raiz was receiving enquiries from dealer groups each week asking to put their SMSF customers in the portfolio.

"To date only individuals could invest with Raiz - it has more than 400,000 active customers - but by making our platform available to SMSFs we are tapping into a very dynamic part of the financial services market," he says.

However, as Raiz provides general advice if an adviser is to recommend a client or SMSF a particular portfolio weighting, a statement of advice is still required.

Malone is confident the offering with appeal to SMSFs with the choice of ETFs and competitive platform fee that includes all brokerage for unlimited trades, no switching fees and automatic rebalancing.

"We are growing with our customers. We look at it, we assess it, and then we build it and then hopefully it fills that hole that they're asking for," Malone says.

The 14 ETF options available to add to the custom portfolio are BetaShares Aust High Int. Cash - AAA, AU, BetaShares NASDAQ 100 and BetaShares Australian Sustainability Leaders.

Additionally, SPDR S+P 200 - STW.AU, iShares S+P Asia 50, iShares S+P Europe 350, iShares Composite Bond, Russell Aust Select Corp Bond, iShare Core S+P 500, Russell Australian Responsible Investment, Global Sustainability Leaders ETF, iShares Global 100, Vanguard FTSE Emerging Markets Shares, and iShares Global Healthcare.

"Offering a custom portfolio gives our growing client base greater choice. As we discovered after offering the Sapphire portfolio with Bitcoin as part of the investment strategy, clients continued to ask us for more control over their portfolios. We believe Custom Portfolio will help meet this need," Malone says.

Since the launch of the custom portfolio in January, 7000 clients representing $28 million in funds under management have taken up the offering.

This article first appeared on Financial Standard

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Annabelle Dickson was a Financial Standard journalist from July 2020 to November 2021. She previously worked at The Inside Investor and The Inside Adviser. She holds a Bachelor of Arts in Communication (Journalism) from The University of Technology Sydney.