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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.
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