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3 key things Hatch has taught us about Kiwi investing behaviour

November 29, 2018


Kristen Lunman

Written by Kristen Lunman

Kristen is General Manager of Hatch - a digital investment platform that gives New Zealanders access to the US share markets. Powered by Kiwi Wealth, Hatch provides easy, affordable, and reliable access into the largest, most liquid share markets in the world.


Since September Kiwis have invested more than $2 million through Hatch

Kiwi Wealth launched Hatch at the end of September 2018 to give Kiwis easy and affordable access to a world of investment opportunities, starting with the US share markets. In the first month post launch, New Zealanders invested $1 million NZD in well-known US-based companies like Apple, Netflix, Google, and many, many more.

We’ve since surpassed $2 million in investments through Hatch, and have had thousands sign up, mainly from word of mouth. We’re thrilled to see so many people taking control of their financial futures by participating in the share markets, but most importantly we’re happy that we’ve created a platform that people have been waiting for.

Our journey to $2 million has taught us a few things….

1.   We’re learning from our investors

We’ve chatted to hundreds of investors and learnt what’s important to them, how they approach investing, and how they use tools like Hatch. Now we have data to back up what they’ve been telling us.

All our investors have different investment strategies, but they do share a “buy and hold” mentality. They are also comfortable with volatility and are willing to talk about their failures as much as their wins.

They’ve surprised us with what they’re investing in. Hatch Customer Service Lead Caitlyn Parker thought exchange traded funds (ETFs) would be the main appeal, but, investors have overwhelmingly invested in individual companies. We’re not sure yet if our investors aren’t interested in ETFs, or if we haven’t created an appealing investing experience yet (let us know what you think!)

Perhaps not surprisingly, a lot of Hatch investors prefer tech shares, despite their recent losses. Tesla is our number one most popular share. Marijuana shares have taken off too, and not because “weed is cool”, but because Hatch investors have told us they are reading up about emerging sectors and are keen to put their money where their research is.

Hatch investors have also been clear about what they would like to see next. They’ve told us that they want:

  1. limit orders
  2. trusts
  3. better analysis on their portfolios
  4. easier ways to find and filter investments by values
  5. american depository receipts (think Alibaba)
  6. access to more markets

We plan on giving them exactly what they want and are currently working on limit orders and trusts.

2.   Volatility is the new normal

Hatch launched during an interesting time and we’ve experienced heart palpitations when logging into our own accounts.

But the good news is that people aren't panicking about market volatility. They aren’t exhibiting knee-jerk reactions and selling, because they understand the principles of self-directed investing. They’re taking a long-term approach and are looking to the fundamentals of a company instead of listening to short-term market noise. Our Head of Operations, Jarred Sewell, is encouraged to see this behaviour. We designed Hatch with good investing behaviour in mind and it’s great to see Kiwi investors are savvier than many give us credit for.

The lack of withdrawals indicates that our investors haven’t been spooked by the volatility. And likewise, the increase in deposit amounts over the last few weeks shows that investors might be looking at the current environment as a buying opportunity.

3.   We’re hopeful about Kiwis and their engagement with money

There is a notion that Kiwis are apathetic to investing. But over the last couple of months New Zealanders have disproved that stereotype. People have demonstrated they want to self-direct their money, and they want to be able to do it easily and affordably.

Before Hatch, it was too hard and too expensive to invest in the US share markets. We now know that Kiwis want to invest in brands they interact with every day. They want to invest in ETFs that align with their values (green, responsible, emerging markets). We’ve given them a platform to connect.

When we launched Hatch Investor’s Club, Natalie Ferguson, Hatch’s Head of Product was (very happily) surprised at the speed our investors turned it into a vibrant community. Kiwis want to talk about investing, about their strategies, what they’re reading, companies they’re watching, and yes, marijuana shares.

Hatch investors also check their portfolios on average 2-3 times a day. That’s not apathetic.

The Hatch team are also passionate investors and read everything our investors send us and are thrilled to be a part of a movement where there is:

  • a thirst for knowledge and
  • an appetite to make the most of their money.

Kiwis investing through Hatch are money savvy. All we’re doing is providing them with a platform that gives them easy and affordable access. They’re doing all the work building better futures for themselves and their families, and it’s beautiful to see.

BlogKW

About Hatch

Hatch is a digital investment platform that gives New Zealanders access to the US share markets. Powered by Kiwi Wealth, Hatch provides easy, affordable, and reliable access into the largest, most liquid share markets in the world.

Through Hatch, Kiwi investors can easily self-direct a portion of their portfolios with over 2,700 of the world’s best-known companies and more than 450 index, industry, and style-based ETFs. Hatch is also the first of its kind to bring fractional investing to New Zealand, letting investors buy portions of companies they might not normally be able to afford and easily diversify their portfolios. 

For more information learn more here

Tags: Hatch, Investing

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