State Street Global Advisors, Inc, the asset management business of State Street Corporation (NYSE: STT), announced a strategic investment in Raiz Invest Limited (ASX: RZI), an Australian Fintech platform that helps customers grow their wealth by helping them to save and invest.
The parties have entered into an equity investment agreement (the ‘Initial Share Purchase’) as part of a strategic relationship pursuant to which State Street Global Advisors “will acquire approximately 5 percent of Raiz’s share capital through a placement.”
In addition, the strategic relationship will “see State Street Global Advisors’ trusted brand and deep knowledge of markets come together with Raiz’s mobile-first platform, which helps Australian retail investors with micro-investments primarily in exchange-traded funds (ETF) and model portfolios.”
Leveraging State Street Global Advisors’ international library of resources, insights and trends, Raiz customers will have access “to a broader array of financial literacy content and investment education tools.”
Yie-Hsin Hung, President and CEO for State Street Global Advisors, said the investment reinforces their strategy of joining forces with wealth firms that share their aim to help investors globally.
State Street Global Advisors’ SPDR S&P/ASX 200 Fund (ASX: STW) 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 (ASX: SYI) and SPDR® S&P® Global Dividend Fund (ASX: WDIV) are “also available on Raiz.”
State Street Global Advisors Head of Intermediary Asia Pacific, Meaghan Victor, said deepening the existing relationship with Raiz reinforces State Street Global Advisors’ commitment to the Australian market.
“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.”
Raiz Managing Director and CEO, Brendan Malone, said the strategic relationship would see Raiz and State Street Global Advisors work more closely together to create innovative savings and investment insights and education for customers.
“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.”
For four decades, State Street Global Advisors has “served the world’s governments, institutions, and financial advisors.”
With a rigorous, risk-aware approach built “on research, analysis, and market-tested experience, we build from a breadth of index and active strategies to create cost-effective solutions.”
