Fiducian Group (ASX:FID) expands its offering in the billion-dollar NZ funds market, registers funds on KiwiSaver

Highlights

• Fiducian Limited has been expanding its business across Australia and internationally as well.
• FID has recently registered some of its funds within the KiwiWRAP KiwiSaver Scheme, offering distribution across New Zealand through their local platforms.
• FID is financially sound and remains open for additional funding to finance its growth and expansion plans.

ASX-listed international fund manager, Fiducian Group Ltd (ASX:FID), has come a long way and has evolved to deliver an enhanced suite of managed funds, including a variety of diversified, sector and specialist funds.

Recently, Fiducian Group entered the billion-dollar New Zealand funds market. FID has launched six funds for investment within the KiwiWRAP KiwiSaver Scheme.

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Expansion into New Zealand

FID has expanded the distribution of the Fiducian Funds across New Zealand through established platforms.

Source: FID Presentation 16/08/21

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FID will launch the following funds, which will be accessible through two major NZ Platforms, Consilium Wrap and MMC Wealth Administration:

• Fiducian Growth Fund
• Fiducian India Fund
• Fiducian Property Securities Fund
• Fiducian Technology Fund
• Fiducian Balanced Fund
• Fiducian Ultra Growth Fund

FID looks to capitalise on its investment capabilities that have proven superior performance.

Moreover, the Company’s approach of following a multi-manager, multi-style, and multi-disciplined investment process, with a strategic asset distribution overlay, offers an increasingly diversified portfolio. This means that the investors can benefit from a variety of distinct investment manager styles and disciplines through a single investment.

NZ Funds market growth in June quarter

Some of the Fiducian Funds are also distributed across New Zealand through their local platforms, and FID has recently registered these funds on a KiwiSaver offering.

KiwiSaver is a New Zealand voluntary savings scheme intended to assist individuals in planning for their retirement through regular contributions.

Source: © Blackboard373 | Megapixl.com

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As per the RBNZ (Reserve Bank of New Zealand), the total funds under management increased by 4.5% to NZ$248 billion during the June 2021 quarter and witnessed a year-on-year growth of 18.1%. Moreover, there has been a steady and strong growth in the value of funds under management since the dip was witnessed in the first quarter of 2020.  

Besides this, the Kiwisaver and Other Superannuation schemes have also continued to experience positive growth, with a growth of NZ$3.5 billion in net assets to NZ$86.7 billion during the June quarter.

Funding sources for business expansion

FID remains debt free and boasts a clean and strong Balance Sheet with positive working capital and cash flow position and cash of AU$19.3 million at 30 June 2021.

Moreover, FID is open to collect funds through capital raising or debt, depending upon the appropriate acquisitions and opportunities, which meet the Company’s expansion and earnings growth aspirations.

FID continues to follow a client-centric approach to ensure that the financial planners have the same values and offer the same support to the clients as the Company intends. 

Business expansion through acquisition is another way that FID looks to consider in the future. FID also plans to engage with those businesses which may not be available for purchase but can use FID’s platforms and funds for expansion. 

Source: © Allisgood76 | Megapixl.com

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Business acquisitions made by FID in previous years have helped and are expected to continue to help the Company’s future revenue and earning capacity.

FID’s Board remains confident about the positive future of the business and believes that organic growth and acquisitions of client bases will further strengthen the Company’s stance.

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