Betashares launches five PIE funds for NZ investors

Betashares has announced the launch of five locally domiciled portfolio investment entity (PIE) funds for ‘’underserved” New Zealand investors with the initial range of funds covering Australian, global and ethical equities, as well as Australian fixed income.

The move will mark the first time Betashares will expand its product offering outside of Australia and will follow the company’s earlier commitment to New Zealand market after it set up a local office in Auckland in 2021.

The five new funds, which will aim to offer cost-effective exposure to Betashares investment strategies within a tax-efficient PIE structure, will provide access to five index-tracking strategies based on the most popular investment methodologies in Betashares’ Australian product range.

The firm said it was currently in the process of building a local team in New Zealand which is led by its executive director – institutional and adviser services, Vinnie Wadhera, who has been with the company for over a decade.

The firm said it would also launch support services for New Zealand’s financial advisers including practice development service modules.

According to Alex Vynokur, Betashares’ chief executive, the New Zealand market remained currently underserved in terms of “high quality and cost-effective investment options”.

The firm said the PIE funds would be available on selected investment platforms from June 2023 and wholesale investors may also be able to make investments directly into the funds.

The Betashares initial PIE fund range would include the following funds:

• Betashares Global Sustainability Leaders Fund – a diversified portfolio of global (ex-Australia) ethical companies. The fund will track an index that contains robust positive and negative ethical screens that exclude companies with direct or significant exposure to fossil fuels or engaged in activities deemed inconsistent with responsible investment considerations. The equivalent Australian fund currently holds approximately $2.4 billion (NZ$2.5 billion) in funds under management.
• Betashares Australian Sustainability Leaders Fund – a diversified portfolio of Australian companies that have passed positive and negative screens to exclude companies with direct or significant exposure to fossil fuels or engaged in activities deemed inconsistent with responsible investment considerations. The equivalent Australian fund currently holds nearly $1.3 billion (NZ$1.4 billion) in funds under management.
• Betashares Australia 200 Fund – a portfolio comprising the largest 200 companies by market capitalisation listed on the Australian Securities Exchange (ASX). The equivalent Australian fund currently holds nearly $3 billion (NZ$3.2 billion) in funds under management.
• Betashares Global Quality Leaders Fund – a portfolio of 150 global quality companies (ex-Australia) as measured by return on equity, debt-to-capital, cash flow generation ability, and earnings stability. The equivalent Australian fund currently holds over $340 million (NZ$361 million) in funds under management.
• Betashares Australian Investment Grade Corporate Bond Fund (NZD hedged) – a portfolio of senior, fixed-rate, investment grade Australian corporate bonds. The underlying strategy on the ASX (as used within the Betashares Australian Investment Grade Corporate Bond ETF) currently holds over $500 million (NZ$531 million) in funds under management.