InvestNow Expands Low-Cost Foundation Series Funds Range With Three New Additions

InvestNow has today launched three new funds within its Foundation Series Funds range, expanding its line-up of cost-effective funds to cater to a broader range of investment strategies.

The new releases, which primarily invest into leading offshore ETFs, are made up of two new international equity funds and a diversified fund.

The Foundation Series US Dividend Equity Fund provides exposure to the Schwab U.S. Dividend Equity ETF, one of the most popular dividend ETFs in the world, ideal for investors wanting a balance of regular income and growth potential.

The Foundation Series Global ESG Fund offers a Vanguard-powered ESG-screened global shares portfolio, for investors who value environmental, social and governance considerations within their investments.

The Foundation Series High Growth Fund features an aggressive portfolio diversified across asset classes, for investors with a higher appetite for risk, alongside the potential for higher returns.

The Foundation Series Funds are managed in-house by InvestNow and structured as PIE funds, which are taxed at a maximum rate of 28%. In contrast, investing directly into the offshore ETFs that the funds are exposed to would mean investors are taxed at a marginal tax rate of up to 39%.

“Our Foundation Series Funds have some of the lowest management fees of any PIE fund in New Zealand, and when you add the tax advantages of PIE funds, investors can take home up to 0.55% more per year.” said InvestNow General Manager Mike Heath.

“It's the same investment strategy that you can get elsewhere, and the same world-leading products that many Kiwis would already be familiar with. What’s different is the cost-effective PIE fund vehicle through which investors can access these funds, and that can lead to more meaningful returns.”

“With these three new funds, the Foundation Series Funds can now meet a wider range of evolving investor needs, from those that are more ESG-conscious to more aggressive-minded investors. They are fantastic building blocks for Kiwis looking to create a low-cost, diversified portfolio,” said InvestNow Senior Portfolio Manager Jason Choy.

InvestNow launched the Foundation Series US 500 Fund and Foundation Series Total World Fund in 2022, providing low-cost exposure to the Vanguard S&P 500 ETF and the Vanguard Total World Stock ETF respectively.

The hedged and unhedged variants of Foundation Series Funds have proved immensely popular, and currently have more than $350 million under management.

New Foundation Series Funds at a glance:

The Foundation Series US Dividend Equity Fund invests solely into the Schwab U.S. Dividend Equity ETF, and offers dividend-orientated investors access to a low-cost solution that charges a management fee of just 0.06% p.a., in line with the underlying ETF.

The Foundation Series Global ESG Fund provides investors access to a low-cost, ESG-screened global shares fund that is powered by popular Vanguard ETFs (Vanguard ESG U.S. Stock ETF and the Vanguard ESG International Stock ETF) and comes with a management fee of just 0.10% p.a..

The Foundation Series High Growth Fund adds a more aggressive diversified fund option that is exposed to almost all growth assets such as local and global shares, while also featuring an ESG investment strategy and a management fee of just 0.37% p.a..

Disclaimer:

The Foundation Series US 500 Fund, Foundation Series Hedged US 500 Fund, Foundation Series Total World Fund, Foundation Series Hedged Total World Fund, Foundation Series US Dividend Equity Fund and Foundation Series Global ESG Fund are all subject to a transaction fee charge of 0.50% for all Buy Orders (Entry Fee) and 0.50% for all Sell Orders (Exit Fee).

FundRock NZ Limited is the issuer of the Foundation Series Funds. The Product Disclosure Statements is available at www.investnow.co.nz. All investments involve risk.

The information and opinions in this publication are based on sources that InvestNow believes are reliable and accurate. InvestNow makes no representations or warranties of any kind as to the accuracy or completeness of the information contained in this publication and disclaim liability for any loss, damage, cost or expense that may arise from any reliance on the information or any opinions, conclusions or recommendations contained in it, whether that loss or damage is caused by any fault or negligence on the part of InvestNow, or otherwise, except for any statutory liability which cannot be excluded. All opinions reflect InvestNow’s judgement on the date of this publication and are subject to change without notice. This disclaimer extends to any entity that may distribute this publication. The information in this publication is not intended to be financial advice for the purposes of the Financial Markets Conduct Act 2013, as amended by the Financial Services Legislation Amendment Act 2019. In particular, in preparing this document, InvestNow did not take into account the investment objectives, financial situation and particular needs of any particular person. Professional investment advice from an appropriately qualified adviser should be taken before making any investment. Past performance is not a reliable indicator of future results, and all investment involves risk

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