As at April 2019, Sharesies has attracted over 41,000 investors who, together, have invested over $45m. One of the major signs, even including all around the world, is that the majority of stocks have significantly dropped in value since Covid-19 first hit. The Sharesies platformâs legal entity is Sharesies Limited. Yes, Sharesies is very safe to use. Sharesies is rolling out their trial run (a.k.a beta) investments options couple weeks ago. The platform cannot run away with your money or use it to pay their creditors, nor is the value of your funds or shares affected – after all, it is not the Fund Platform that determines the value of your funds and shares. Examples are Smartshares, AMP Capital, Simplicity, and JUNO. Enter the amount you wish to withdraw, your bank details and click Withdraw. It is easy to add money to your Sharesies wallet. Sharesies Promo Code: Get $5 for free when you started with Sharesies here. Let’s take a look at who owns the investments that you buy through these platforms, and what happens if the platform goes out of business. So what are the custodial arrangements that InvestNow and Sharesies use? Once you have decided what you want to invest in, you can simply place your order within the Sharesies app. Founded by Sonya Williams, Brooke Anderson and Leighton Roberts, Sharesies is an online platform that aims to break down the barriers to investment, giving users access to investment opportunities â regardless of how much theyâve got to invest. Definitely do start looking into index funds, they're â¦ Managed funds, Exchange traded funds (ETFs) and Companies. Founder Brooke Anderson said Sharesies was a wealth development platform, not a wealth management one. From a transactional perspective this would be no different than if we simply decided to change the custodian at some point in the future. We spoke to co-founder & CEO Brooke Anderson to find out more. IP: 220.127.116.11. Brooke Roberts, Sonya Williams, Richard Clark, Martyn Smith, Leighton Roberts and Ben Crotty. But I figure that they are still here after a year, the social media fan party has faded away and yet they still keep coming up in conversation. Using the card option may have an additional card fee. Theyâve improved access to investing by reducing cost, removing jargon, and making investing fun. Let’s be friends on Facebook, Twitter, or via email so you can keep up with the latest news and posts! Ask friends, colleagues, or an independent financial adviser for a second opinion. Sharesies.nz informations. Get $5 cash with my Sharesies â¦ In the case of Fund Platforms, read their terms and conditions, and relevant help articles to determine what their custodial arrangements are (. Do the provider’s management have experience in the financial services industry (check their LinkedIn profiles)? Right now investors’ funds are locked up as liquidation procedures are carried out, with investors facing a 7-15% loss in their investment. Instead they are held in the name of a Custodian, but on your behalf, with you as the beneficial owner of the investment. Managing your Sharesies Account. Every Thursday, we unpack what's been happening in the news and the New Zealand share market, explain what it means for you as an investor, and answer your questions about money, investing, and Sharesies as a business! The WoT scorecard provides crowdsourced online ratings & reviews for sharesies.nz regarding its safety and security. There is a cost to this though. Sharesies $1million Media Release. In comes Sharesies, the perfect platform to help anyone build an investment portfolio without a minimum buy-in, or all the complicated jargon. Shares allows you to invest in three different types of investments. You can invest in local and foreign ETFs directly via major international players such as Vanguard, but for this review we only cover New Zealand-based index fund investment schemes outside of KiwiSaver. ð | At Sharesies, we want someone with $5 to have the same investment opportunities as someone with $500,000. The answer to this is yes. Many Fund Managers also outsource administrative functions such as fund accounting, pricing, and the fund’s registry to other providers. How was Halifax unsafe? Read reviews of the service in the news, on blogs, or on social media. They act as an investor-facing facilitator, collecting buy/sell orders from investors, then passing these onto the custodian to execute. Join Sharesies' co-founders Sonya and Leightonâand some weeks, even a special guest or two! Helpful info about your Sharesies Account: personal details, password, Sharesies subscription, etc. Also in InvestNow’s case, the Custodian (Adminis) is totally independent and unrelated to the Fund Platform. Sharesies is a Wellington-based company with 28 staff, which creates a product which helps young people begin their investment journeys. shares and bonds) of a fund are also unaffected as they are held by the Custodian. To get access to your money, your Fund Platform or Fund Manager would switch their custodial services to a new Custodian, after which business would carry on as usual. Steve Hansen bought 100 units in the Smartshares NZ Top 50 ETF through InvestNow. For example, if InvestNow went out of business while owing tax to the IRD, the IRD can’t touch the funds held by Adminis Custodial Nominees Limited to claim back InvestNow’s unpaid tax. Your guide to investing in shares, bonds, funds, and peer to peer lending in NZ, InvestNow and Sharesies have plenty of them, collapsed in late 2018 having lost almost $20 million in investors’ money, What I learnt – NZ Shareholders’ Association ‘Money 101’ Seminar. Sharesies was originally founded by Brooke Roberts in 2016, and was first registered on the New Zealand Companies Register in May 2017. The problem now is how you are going to get access to your investments if the Fund Platform isn’t around. Fund Managers/ETF issuers are the organisations responsible for managing the funds and ETFs you invest in. Funds are also independently audited. Section 7 of each PDS should show who the fund’s custodian, supervisor, and auditor are. How safe is Sharesies? Cash deposits, and investments in non-listed funds are held by custodian Sharesies Nominees Limited, while investments in listed funds and shares are held by NZX owned New Zealand Depository Nominee Limited. OP asked a question and it deserves a serious answer. Brooke also worked at Xero where she learned about technology and how it can revolutionise the way businesses work. An administrator (for example, Custodian Adminis, or the liquidator of Sharesies) would likely work to achieve the best outcome for investors. Sharesies is expensive for beginners If you have less than $50, it’s free. Check if Sharesies.nz is legit or scam, Sharesies.nz reputation, customers reviews, website popularity, users comments and discussions. Custodians are required to be independently audited annually, and must send the auditor’s report to the Financial Markets Authority (FMA). To get access to your money in the case that the Fund Manager shuts down, the fund’s Supervisor would most likely facilitate either: In the case of a KiwiSaver fund shutting down, your money would always be transferred to another KiwiSaver provider. According to their website, Sharesies has six co-founders. Check the provider’s social media accounts. New online investment platform, Sharesies has had $1million dollars invested through the platform, after just 8 weeks. Once you have money in your account, it’s time to find a fund or company you wish to invest in. You can open a Sharesies account for free and you will get charged depending on the value of your portfolio. They canât do anything with your money or investments without you telling them to. The transfer of your fund’s management to another Fund Manager. Finally, I have just scratched the surface of what the players in our financial markets have to do to comply with regulations, and keep your money safe. For example, Sharesies Limited cannot use investors’ money held in Sharesies Nominee Limited to pay their employees’ salaries. Investing in individual companies vs funds – What’s better? You can check out theirâ¦ I also haven’t covered how international investment providers like Vanguard or Hatch handle investors’ money. Common concerns include: Thankfully local investment providers have measures that help keep your money safe, many of which are required by strict New Zealand regulations. Keen to start building your investment portfolio with Sharesies? The InvestNow platform’s legal entity is InvestNow Saving And Investment Service Limited. Sharesies is a company that aims to create the most financially empowered generation through its products. Found this article helpful? Before Sharesies, Brooke Roberts worked at Kiwibank managing their saving and investment portfolio where she learned a lot about hedging and share pricing. Sharesome is an adult social media website founded in 2018 and based in Cyprus. Sharesies have just celebrated their first birthday and up until this point I have resisted having a play around with their product. But like money in the bank, nothing is 100% safe, What does interest me, and I must look into it one day, is the effect of sharsie buyers/sellers on the market price. Smartshares, Simplicity and Sharesies are just some of the options for index fund investing. Therefore this money can’t be used by the platform to run their business. Sharesies makes it easy to start investingâno jargon, no minimum buy-in, and all online. If there are a whole pile of $10 sharsies trades that drive the SP up, is â¦ The share registry (record of who holds the shares, and how much they hold), would show the Custodian (Adminis) as the owner of the shares: The Custodian keeps a record of who the beneficial owner of their holdings are: When you deposit money with the Fund Platform, the money goes straight from you to the Custodian. Sharesies is not low cost for new investors, as can be seen in my investing series that compares the cost of the biggest index funds in NZ. The content of this article is based on my personal opinion and should not be considered financial advice. So what is the role of the fund platform?With the custodian handling all the money, what does the fund platform actually do? ( https://www.smartshares.co.nz ). Get new investing articles in your inbox. Think of it as a portfolio in your pocket. It's only been going since June, so how did startup Sharesies capture thousands of customers and millions of their hard-earned money? Again your funds are safe in this scenario because of the separation between the Custodian’s business and investors’ money. If the custodian went out of business (which in our case is Adminis) it would not impact on our clients’ assets. The Sharesies platform’s legal entity is Sharesies Limited. In addition, they carry out activities such as marketing the platform, onboarding new customers, supporting customers, and maintaining the platform. Sharesies allows people with a minimum of $5 to invest to put their money into Smartshares exchange-traded funds. Due to its familiar social network design, the platform has been dubbed âthe Facebook of porn". Sharesies is an excellent stock trading platform which provides the investors with a large range of benefits and ease. For Fund Managers, read their funds’ Product Disclosure Statement (PDS). Sharesies’ custodial arrangements are less robust in this aspect, as their custodian Sharesies Nominees Limited is related to the platform, being fully owned and sharing the same directors as Sharesies Limited. This was a serious answer by @tripp: If it sounds to good then it tends to be a scam or a service selling share plan places or stolen accounts. They have a custodial service that holds all of their customers money and non-listed funds which is separate from Sharesies Limited. The website's founders claim they built Sharesome for adult content creators and to offer them tools to grow their audience. This would be the probable scenario if you hold the Vanguard funds on InvestNow, given most investors won’t meet the $500,000 AUD requirement to hold this fund in their own name. Accordingly we would transfer the custodial services to a new custodian. I've got their invitation recently and checked out their offerings. Once you have sold your shares in your Sharesies portfolio and the money is now in your wallet, go to the Menu, click Wallet and click Withdraw. 12 articles in this collection Written by Renae Williams and Natalie Bryant. You can set up a Kids Account for someone under 18, but it will need to be linked to an adultâs account. It is not able to do anything with the money unless you give the instruction to do so. Anyone can have an investment portfolio. Creation date: Not Available Licensed New Zealand Fund Managers all have an independent Supervisor. They charge an admin fee, but have a nicer front end than NZX and are a little more flexible. "We want all New Zealanders to know investing is an option for them. If the provider is offering something too good to be true, it probably is. Investors’ money is never touched by the Fund Platform. Below that it is free. You can either buy a share (or a fraction of a share) directly, or a fund. For many of you who are worried about making investments and buying shares through Sharesies, it keeps your money safe by using the custodial system. You can read more about Sharesies’ custodial arrangements here. It will then ask the amount you want to invest, once you have added the amount you wish to invest, click ‘Invest Now’. Or you could just invest in a fund to achieve instant diversification (as funds can potentially contain hundreds or thousands of companies) – InvestNow and Sharesies have plenty of them! Halifax Investment Services was an investment provider that allowed people to trade shares on a variety of platforms. Letâs get you started. When you invest in a fund, your money goes straight to the Fund Manager’s Custodian. How long to top up your Sharesies Wallet. It's quick to sign up. Such measures are not a 100% guarantee that your money is protected against fraudulent activity. Sharesiesâ fun user experience and much smaller offering better target new investors, however its subscription fee makes it costly for those with very small amounts to invest. Halifax got into financial trouble, and collapsed in late 2018 having lost almost $20 million in investors’ money. InvestNow’s custodian is Adminis Custodial Nominees Limited, run by a specialist Wellington based investment administration company, Adminis Limited. Just looking at the ad you can clearly see "Netflix shared account" Here is your answer: Really you have to ask if this is a Legit! This is a legal requirement and the system is audited every year. Their role is essentially to ensure that the Fund Manager is acting in the interests of investors, is in good financial shape, and acts in accordance with regulations. Your investment in Sharesies is as diversified as â¦ Custodians are also required to reconcile records of investors’ money daily. The audit includes assessing whether the custodians have the right procedures and controls in place to accurately process transactions, keep records, and safeguard investors’ money. blue chip shares I feel will be safe,as an example,prior to cv19 I was happy with my portfoli,however many took a dive but most are just about back to what they were. This system is scrutinised every year, so there are minimal chances of risks. Custodians won’t protect you from losses arising from poor investment choices or your company going bust, nor will holding the shares in your own name make a difference. The underlying assets (e.g. What if the Custodian itself were to go out of business? Too many New Zealanders were priced out of investing, she said. There are a few ways that Sharesies makes money. A unique way of saying that you will share something with someone. If I buy into Sharesies, am I buying a share on the sharemarket? Come find out I split my $50 high risk funds and made minuscule returns. Making investing easy. Sharesies actually let you invest as little $5. However, Sharesies (beta) got a fantastic user interface and make investing as easy as shopping online. I'm sure Sharesies are pretty safe. It makes me want to keep putting money into it. In the scenario that you’ve invested in the shares of an individual company, and that company goes bust, you will unfortunately lose money – It’s the company itself that gives that company’s shares value. While custodians are not a bulletproof solution, It demonstrates the importance of choosing a platform that does not handle your money and uses an independent custodian. Please get in touch with us so you can get back to investing. Sharesies does however provide a very good platform, that is arguably easier to use than its competitors platforms. Inside the Sharesies app, you will have access to information about the company, the price history and a risk and return indicator. If you are completely new to share trading, also see this article about Building an Investment Portfolio in 2020. InvestNow’s Custodian allows you to transfer ownership of an investment into your own name (this is subject to the Fund Manager accepting you onto their share registry). If you have $50 – $3000, it’s $1.50 per month. to question whether the investment provider you want to use such as InvestNow and Sharesies is safe. In order to best achieve this goal, it must first build a work environment that empowers its employees. Here’s some things you can do to see whether an investment provider is legitimate: Reputable platforms and fund managers have robust controls and measures in place to keep your money safe. Ready to sign up? Another business could take over the InvestNow or Sharesies platform and the relationships with their customers. It appears that leading up to the collapse, Halifax were struggling to pay their bills, and were able to access clients’ money, subsequently using the funds to cover their own operating expenses. It is advised to do thorough research before investing in your chosen fund or company, as they may fall into different risk categories. The actual funds are all legit, and available through multiple sources. If the custodian cannot transfer your assets to you, then this should be an alarm bell. Reputable fund managers use a custodian to hold investors’ money independently from the fund manager’s business. Sharesies makes me want to know more about managed funds, about the macro economy. Investors’ money is held in a seperate legal entity from the Fund Platform, with investors being the beneficial owners of that money. If anything were to happen to Sharesies Limited, your money should still be safe because itâs held separately in Sharesies Nominee Limited and the NZX Depository. Tends to encourage over complication, most people are best off with the single most diverse, cheapest, fund they can find. Sharesies started when co-founder and CEO Brooke Roberts realised how hard it was for New Zealand consumers to create an investment portfolio. Could this service run away with my money? This includes using custodial arrangements to keep investors’ money segregated from their own business, and having auditors and supervisors assure they are acting in the interests of their investors. All NZX-listed exchange-traded funds (ETFs) and companies are held under Sharesies Nominee Limitedâs name, and under â¦ The investments you buy through these platforms are not held in your name, nor are they owned by the platform. 4 things to know about investing in Equity Crowdfunding, ← What I’ve been investing in – October 2019, Smartshares vs Simplicity vs AMP vs Kernel – NZ Share Index Fund shootout →, What I’ve been investing in – February 2020, Rights issues, share buybacks, and acquisitions – 5 things to know about Corporate Actions, Property vs Shares – The pros and cons of buying residential property, Due diligence on shares – How I evaluate companies before investing, How to invest in Australian shares from New Zealand, What I’ve been investing in – January 2020. Here are the custodians for a few different New Zealand fund managers: Like with Fund Platforms, the custodial arrangements mean that the Fund Manager doesn’t handle your money, nor do they own the underlying assets (e.g. Sharesies charges a monthly subscription fee if your portfolio is worth more than $50. Youâll need to be at least 16 years of age and have an NZ bank account. Sign up. Yes, Sharesies is very safe to use. It makes me want to be an goddamn intentional consumer. Subscribe to get new Money King NZ articles in your inbox. Therefore it’s important to diversify your investment portfolio, so your whole portfolio isn’t wiped out if your company goes down the toilet. The Fund Manager then tells the Custodian what to do with the money, for example, which shares and bonds to buy or sell in order to make up the assets of the fund. Sharesies is available for anyone who is 16+ years of age, an NZ resident, and has an NZ bank account. 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