SSGA unveils stake in Aussie fintech platform
State Street Global Advisors (SSGA) has taken a 5 per cent strategic stake in Raiz Invest, deepening its existing relationship with the Australian fintech platform.
In an announcement, the two parties confirmed they have entered into an equity investment agreement that will see SSGA acquire approximately 5 percent of Raiz’s share capital through a placement.
Moreover, the strategic investment will enable Raiz’s online customers to access a broader range of financial literacy content and investment education tools as provided by SSGA. The fintech platform assists Australian retail investors with micro-investments primarily in exchange-traded funds (ETF) and model portfolios.
According to SSGA, its SPDR® S&P/ASX 200 Fund is currently the largest single fund holding in the model investment portfolios provided by Raiz to its users.
Yie-Hsin Hung, president and chief executive at SSGA, commented: “We are excited to expand our relationship with Raiz, a proven fintech leader in bringing important tools and educational resources to investors across the region. This strategic investment reinforces our strategy to join forces with wealth firms who share our commitment to help investors globally manage their investments and savings for retirement.”
The announcement cements SSGA’s existing relationship with Raiz and reinforces its commitment to the Australian market, explained SSGA’s head of intermediary for Asia-Pacific, Meaghan Victor.
“This investment is a natural extension of the successful relationship we have enjoyed with Raiz since launch in 2016. Both of us share a passion for making financial tools and solutions accessible to all investors, and through this strategic arrangement we will leverage our respective capabilities to help Australian investors plan and save for retirement,” she said.
Meanwhile, Brendan Malone, Raiz managing director and CEO, described that the partnership will see the two firms work closely together to construct new investment insights and education for Raiz users.
He said: “From learning about investments in ETFs through to more complex investment strategies such as superannuation retirement portfolios, we look forward to continuing our relationship with State Street Global Advisors on educational tools for all stages of a customer lifecycle.
“Raiz’s Australian customers, who range from beginners to experienced investors, will benefit significantly from the global resources that we can provide through this strategic arrangement. Between Raiz’s technology and State Street Global Advisors’ global investment capabilities and market expertise, there are great opportunities for innovation in the Raiz product offering.”
AUTHOR
Jasmine Siljic
Recommended for you
Tribeca Investment Partners has made a distribution hire from Australian Ethical in a newly-created role focused on the national intermediary market.
Asset managers may be urged to diversify their product ranges, but investment executives have warned any M&A deal should avoid simply filling gaps and instead consider long-term value creation.
Specialist wealth platform provider Mason Stevens has become the latest target of an acquisition as it enters a binding agreement with a leading Sydney-based private equity firm.
Fund managers are entering 2025 with the most bullish sentiment since August 2021 and record high allocations to US equities, thanks to the incoming Trump administration.
