WELLINGTON, NEW ZEALAND: KiwiSaver provider, Booster Investment Management Limited, is kicking off the first NZX listing of 2022, with the launch of its new retail investment fund, the Booster Innovation Fund (BIF).
The investment fund is the very first of its kind listed on the NZX (on 2 March), providing Kiwis with direct access to investments in a portfolio of early-stage companies, specialising in biotechnology, engineering, and medical and materials science coming out of New Zealand’s universities, research institutions and the private sector.
Booster Innovation Fund Manager, Melissa Yiannoutsos, says BIF continues Booster’s commitment to support the growth of New Zealand business as well as early-stage tech and science, and provides all Kiwis with the opportunity to directly invest in the future of these young companies.
“There are exciting start-ups right here in Aotearoa, making breakthroughs in cancer research, artificial intelligence, robotics, biotech and more. Investing in these developing local innovations is not without its risks as early-stage businesses face many challenges on their path to success and in some cases, failure,” she says.
“We believe it’s important to support these early-stage Kiwi businesses with funding that allows them to stay Kiwi-owned for longer – creating high value jobs, attracting talent, and creating truly valuable businesses.
“In addition to helping start-up companies secure much-needed next-stage investment, the maturing of New Zealand’s tech sector makes the timing right for BIF to launch into this fast-growing part of the economy,” she says.
So far, the BIF portfolio is made up of 18 businesses, including Inhibit Coatings, a Wellington-based company, which makes anti-microbial surfaces – highly desirable technology during a global pandemic.
Inhibit Coatings Chief Executive Officer, Eldon Tate, said, alongside investment directly in Inhibit Coatings, being part of BIF had been hugely valuable for our company by gaining access to a wider pool of knowledgeable, supportive and insightful investors.
“It’s great to see deep-tech science and technology commercialisation becoming more mainstream. It gives everyone the opportunity to be involved supporting the research and development from around New Zealand, which is making a real-world impact while growing sustainable Kiwi businesses,” he says.
BIF also has a distinctive fee structure in a highly competitive sector. The fixed annual charges are limited to specified cost recoveries and BIF does not charge fixed annual management fees, with fees being based purely on the performance of the fund.
“Our performance-based fee structure means our incentives are aligned with our investors. This way we only receive a fee when the overall fund performance exceeds 10% per annum,” says Ms. Yiannoutsos.
She says Booster is also committed to ensure people understand the risks associated with investing in early-stage companies.
“Investing in early-stage companies is a long game – some will be very successful, and some will give indifferent returns, no returns and some are likely to fail. However, BIF plans to manage this risk by growing a portfolio of small holdings in over 40 investments that are diversified by sector and stage of development.
“This is recommended as a long-term investment option. We’re doing this with the idea of growing something for New Zealand and it creates a really simple way for Kiwis to engage, be inspired and collectively share in potential successes. Everyone gets the chance to support the future and growth of our country.”
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