ASX:RZI
RAIZ Invest Ltd
Investment Summary
The fund managers believe that RAIZ Invest Ltd represents a compelling investment opportunity due to its strong fundamentals and recent strategic moves. With over 300,000 active clients and $1.5bn in funds under management, the company is positioned as an attractive target for potential acquisition by larger financial institutions. In their opinion, the recent share price appreciation, particularly a rise to $0.59, is indicative of investor confidence, possibly influenced by ongoing activity in the sector, including interest in Spaceship and other competitors. The closure of loss-making overseas operations and the addition of a strategic investor, State Street Global Advisors, further solidify the company’s path toward profitability, with expectations to trade profitably in FY25. However, the lack of significant company news has raised questions about the timing of recent stock movements. Overall, the fund managers remain optimistic about RAIZ's future performance.
Commentary From The Managers
Cyan Investment Management
28 Feb 2025
$0.59
- Cyan Investment Management has been invested in Raiz Invest since 2019.
- Raiz Invest is a consumer-facing micro-investing platform.
- The company has an engaged and growing customer base of over 300,000 retail investors.
- Raiz manages more than $1.5 billion in funds under management (FUM).
- The recent stock increase of 35% seems arbitrary with no positive news from the company.
- Activity in other financial plays like Selfwealth (SWF) and Insignia Financial (IFL) may be influencing investor interest in Raiz.
Cyan Investment Management
31 Dec 2024
$0.55
- Cyan Investment Management notes significant financial progress by RAIZ Invest Ltd over the past year.
- The company has closed down loss-making international operations.
- RAIZ has added a strategic investor, State Street.
- The recent stock performance has been curious, with no major updates since the AGM in late November.
- There is heightened interest in the sector, exemplified by strong performances in Netwealth (NWL) and Hub24 (HUB).
- There have been takeover bids for Spaceship Investors, Selfwealth (SWF), and Insignia Financial (IFL).
- RAIZ boasts a customer base of over 300,000 and more than $1.5bn in funds under management.
- The company is considered an attractive target for both domestic and international financial institutions.
Cyan Investment Management
30 Sept 2024
$0.46
- Raiz Invest (RZI) was the biggest contributor to the Fund’s performance in the month, with a gain of 15%.
- The company serves over 300,000 active clients in Australia.
- Raiz manages $1.5 billion in funds under management.
- Recent strategic decisions include closing loss-making Malaysian and Indonesian operations.
- The company is expected to trade profitably in FY25.
- Price appreciation in September likely influenced by significant events including a $2 million strategic capital raise to State Street Global Advisors.
- A comparable competitor, Spaceship, was acquired for $80 million, nearly double Raiz's current market cap.
- Raiz also holds $14 million in cash.
Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.