State Street Global Advisors buys 5% stake in fintech Raiz
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The news: State Street Global Advisors, the asset management arm of NYSE-listed State Street Corporation, has acquired a 5% stake in ASX-listed fintech platform Raiz Invest.
The context: As part of a "strategic relationship" between the two companies, State Street and Raiz will aim to help Australian retail investors with micro-investments, primarily in exchange-traded funds (ETFs) and model portfolios.
Sydney-based investment app Raiz, which supports customers in growing their wealth by helping them save and invest, will expand its financial literacy content and investment education tools, courtesy of State Street’s international library of resources, insights, and trends.
State Street's ASX-listed "SPDR S&P/ASX 200 Fund" is currently the largest single fund holding in the model investment portfolios provided by Raiz to its customers. The asset manager’s "SPDR MSCI Australia Select High Dividend Yield Fund" and "SPDR S&P Global Dividend Fund" — both listed on the Australian sharemarket — are also available on Raiz.
Raiz shares were up 8.1% to 40 cents by 1:05pm AEST
What they said: “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,” said Yie-Hsin Hung, President and CEO for State Street Global Advisors.
“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,” she said.
Raiz managing director and CEO Brendan Malone 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 markets expertise, there are great opportunities for innovation in the Raiz product offering.”
The source: State Street Global Advisors media release
