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Stewart nails third capital raising

Ralph Stewart's Retirement Income Group has exceeded expectations with its latest capital raising which should enable the company to reach break-even point in 2018.

Tuesday, August 30th 2016, 6:00AM 3 Comments

Ralph Stewart

RIG set out to raise a minimum of $1.3 million in its third and latest capital raising and ended up pulling in $1.8 million.

Managing director Ralph Stewart says the additional capital will be used primarily to support future sales growth. It will also help the company meet increased capital adequacy requirements.

RIG recently changed its capital holding policy: “We have increased our policy of holding at least 100% of the required regulatory capital to 110%.

It has made this change as a key part of the company’s variable annuity product offering is around its “trust and confidence positioning.

Stewart says the capital raising gives the company a "pretty clear runway" to get from a start up into profit.

He says RIG will only need to raise more capital before then "if sales go crazy." 

It had conducted one other capital raising previously raising around $500,000 from retail investors.

One of the features of this latest capital raising is that about one quarter of the money came from Australian investors. Stewart says these investors had seen what Challenger had achieved in Australia with its products and was looking for RIG to do similar things in New Zealand.

About 18% of the people who put money in are existing investors. He says 70% of investors were professional or wholesale investors and the rest retail.

RIG is currently continuing to do work in developing a new superannuation fund that targets pension transfers.

Stewart says this makes sense as the UK Pension transfer rules require money to be invested in funds which provide a life time income in retirement.

RIG is working to develop and manager the Garrison Bridge Retirement Fund which is forecast to deliver $5 million in sales this year and $30 million next year.

The company continues to work with two KiwiSaver providers as well.

Tags: QROPS Ralph Stewart Retirement Income Group

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Comments from our readers

On 30 August 2016 at 1:05 pm Another AFA said:
Well done to Lifetime and Ralph Stewart. I'm interested in the development of the Superannuation Fund for pension transfers. Any more news on this?
On 2 September 2016 at 6:49 pm I was wondering said:
Hey Ralph, now that RIG is successful can you come back and fix up AMP? Hopefully it's not too late to save it, but urgent action is required!
On 6 September 2016 at 7:31 pm Ralph Stewart said:
I am sorry for the slow response. Yes the new multi rate PIE, registered as both a NZ Super Scheme and with HMRC as a ROPS offer will hope to be live in October. We are awaiting final sign off from fund supervisor the Public Trust and confirmation of our request foe an FMA exemption to manage the hardship issue. All going well. Sincere thanks for the interest.

On AMP, that is very kind indeed and fair to say you have got me.. I am lost for words. Best RS

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