Nick

Openmarkets is pleased to announce it has extended its broking services agreement for an additional three years with Pearler, one of Australia’s fastest growing digital finance platforms built for everyday Australians. The agreement sees Openmarkets continue serving as broker to Pearler for all CHESS-sponsored equities until mid-2029.

Launched in 2021, Pearler has grown over four years to become one of Australia’s most influential self-directed personal finance platforms for younger investors, with more than $2.8 billion in holdings on platform.

Pearler offers an all-in-one self-directed platform built for the needs of the next generation. Its broad range of products are designed for long-term investing, including local and global equities, micro investing, a first home deposit savings product, a unique retail super offering that enables investing into 40+ ETFs, and products that help Australian parents build long-term wealth for children. Pearler’s all-in-one offering is built on the premise of helping Australians take control of their financial future with lower risk, time-tested investment approaches with a long-time horizon. With 92 percent of its funds under management allocated to ETFs, and the balance in US and ASX stocks, super and cash, Pearler is the only true independent home of the ETF generation.

Pearler first appointed Openmarkets in October 2021 as its broker for domestic equities, making Openmarkets Pearler’s first integration partner. Openmarkets’ broking solution has since scaled with Pearler’s growth.

Dan Jowett, CEO of Openmarkets, said Openmarkets was delighted to support Pearler’s growth and connect its clients to Australian equities markets.

“Pearler is truly one of Australia’s great fintech success stories, not just because of its massive growth but because of the positive impact it’s had on everyday households across the country.”

“Openmarkets is proud to have been part of Pearler’s story since its early days and we’re excited about a future together as we support Pearler’s growth and mission to help Aussies achieve financial freedom.”

Nick Nicolaides, CEO and co-founder of Pearler said high quality finance and technology partners are a key part of Pearler’s all-in-one finance offering.

“Pearler has ambitions to grow significantly over the next twelve months, and we’ve enlisted a strong network of partners to power our products and enable us to achieve this. Our relationship with Openmarkets is one built on trust, accessibility, and quality service, and we’re excited to continue our work together.”

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Nick

Investment platform Pearler has launched Pearler Super, a new superannuation option aimed at younger Australians seeking greater autonomy over their retirement savings through direct access to exchange-traded funds (ETFs).

The product allows Pearler members to construct personalised superannuation portfolios by selecting from a list of 40+ ETFs listed on the Australian Securities Exchange (ASX). These ETFs were selected based on trading data gained from Pearler’s share investing community over four years and nearing $2 billion invested. To promote diversification and risk management, each ETF carries a portfolio allocation cap ranging from 5% to 100%.

Pearler’s product development has been heavily shaped by user demand. A recent survey of 1,421 Pearler customers found that 74.6% preferred ETFs as part of their super investments, and within that 27% specifically favouring all-in-one or diversified ETF options.

“We’ve seen growing demand from our community for a simple, transparent super product that aims to mirror the way they already invest outside super,” said Nick Nicolaides, co-founder of Pearler. “Rather than stock picking or accessing complex products, the primary demand among younger investors is to allocate their super to ASX-listed ETFs they’ve come to know and trust.”

According to Pearler, over 85% of its users’ non-super savings are invested in ETFs, and the new offering extends this investing style to the superannuation context.

Nicolaides added that Pearler Super is particularly suited to younger accumulators with long investment horizons. “It’s a self-directed option built to solve the challenges faced by this generation – namely, low engagement and limited transparency around superannuation. As financial literacy around ETFs continues to grow, we are leveraging that as a bridge for people to build more confidence in their super.”

Pearler Super is accessible exclusively via the Pearler web platform and mobile app. It seeks to enhance engagement by providing a single dashboard through the app that can display both super and non-super portfolios.

Importantly, Pearler is not offering proprietary investment products. Instead, the platform serves as a digital facilitator and educator, offering ETF exposure through a structure that prioritises simplicity and cost transparency.

Pearler Super is issued by Equity Trustees Superannuation Limited (ABN 50 055 641 757, AFSL 229757) (ETSL or the Trustee) as trustee of the superannuation fund known as ‘Super Simplifier’ (ABN 36 526 795 205). Pearler Super is a product offered through the Super Simplifier. The investment administration is managed by DASH Administration Services Pty Ltd (ABN 43 609 025 130), a Corporate Authorised Representative of DASH Investment Services Pty Ltd.

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Nick Nicolaides

Australian household wealth has hit an all-time high, rising for the fifth straight quarter, with property, cash and share assets all striking record-high levels in December 2023, with direct ownership of shares surging as global share markets rallied after volatile trading in 2022 and early 2023, drawing many new investors into direct equity ownership, many using ETFs, according to Pearler co-founder and CEO Nick Nicolaides.

Released today, ABS Household Wealth Data ^[1]show:

• household net wealth sat at a record $15.66 trillion in the December 2023 quarter
• wealth was boosted by a record level of property assets of $10.66 trillion
• households direct equity holdings hit a record $1.40 trillion
• households held a record $1.70 trillion in cash and deposits
• households held a record $3.74 trillion in superannuation, all record-high levels.

The ABS data showed that ownership of shares surged over the December quarter, with households’ direct ownership of equities rising 3.8 per cent or by $51.8 billion to $1.40 trillion.  House prices continued to grow significantly, as did domestic and overseas share markets, despite higher rates.

Pearler co-founder and CEO  Nick Nicolaides, commented on the data: “It is encouraging to see that Australians have been investing in equities despite rising interest rates and cost of living pressures. Listed securities such as exchange traded funds (ETFs) are far more liquid and affordable than residential property and many investors, especially younger generations, are using them as the primary tool to build a home deposit.

“Equities offer comparable, if not superior, returns compared to residential property over the long run. With young people increasingly being priced out of the property market, investing directly in equities, and particularly exchange traded funds (ETFs), is a more viable way to build wealth.

“That’s what we are seeing younger investors buying more heavily into equities compared to prior generations. The average age of Pearler users is 35 years, and they are largely buying ETFs to hold and build wealth. Pearler has seen more than 100% growth in equities holdings in the past 12 months; over 80% of investors’ money is being directed into ETFs and increasingly, those investing in offshore shares, which have risen in value more quickly than Australian shares.

“At the same time, we are seeing rates of home ownership among younger Australians fall significantly. The home ownership rate^[2] of 25- to 29-year-olds was just 36% in 2021 and for 30-to-34-year-olds it was 50%, down from 64% in 1971. That compares to around 80% for people aged over 60. In addition, while wealth gains in residential property are huge, they have largely been made on paper only. Most people can’t easily sell their main residence to support their needs.

“For investors looking to diversify their household wealth, ETFs are the ideal investment to boost exposures to the more liquid share market. ETFs are cost-effective and can be easily bought online for little or no cost, unlike the prohibitive costs of buying residential property, which often involves a prohibitive level of stamp duty slug, a huge deposit and other high transaction costs,” Mr Nicolaides said.

“Platforms like Pearler offer a range of structures, with diversified investing from $5 into ETFs. Importantly, ETFs spread financial risk across a diversified portfolio of assets. Some ETFs can hold 50, 100 or even more companies or listed securities. ETFs offer access to local and offshore share markets and are diversified across different sectors that aren’t easily accessible in Australia, such as technology or healthcare.”

———-

Notes:
[1] https://www.abs.gov.au/statistics/economy/national-accounts/australian-national-accounts-finance-and-wealth/dec-2023#households
[2] https://www.housingdata.gov.au/visualisation/home-ownership/home-ownership-by-age-group

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Nick

Pearler, Australia’s leading long-term investing and wealth management platform, has launched a ground-breaking investor forum that will be moderated to allow advisers to give retail investors general advice without breaching guidelines for social media influencers discussing financial products and services.

Titled ‘Pearler Exchange’ this feature has been designed to provide transparent and open forum, where industry experts provide feedback across a wide range of wealth topics.

It is positioning advisers at the centre of the online discussion, without the risks that come with using other forums.

In March, the Australian Securities and Investments Commission issued an information sheet, setting out its expectations for social media influencers discussing financial products and services. It was a warning to finfluencers that they must comply with financial services laws or risk “substantial penalties”, and a call for them to think carefully about their content.

Nick Nicolaides, Co-Founder and CEO of Pearler, says: “The way we share information has changed and if the wealth industry doesn’t adapt, young people lose out. There’s a giant gap between TikTok and traditional advice, and this is a step towards the middle ground.”

Nicolaides says: “We love how social media has helped millions of young people develop an understanding of personal finance. But we know there are pitfalls on any social media platform.

“Pearler Exchange will have in-house professional oversight to protect the interests of those who come to the forum with questions and those with things to share.

“Pearler Exchange does not allow product spruiking, sales or personal advice. We are keeping out the bots and the sales representatives by asking people to set up a Pearler account before they ask a question, and we are verifying the ID or anyone wanting to answer questions.”

A key difference, compared with other forums, is that people offering comments will be “badged” – identified as an “Adviser”, “Investor” or “Pearler” so the audience will know if someone is licensed.

Another key difference is that Pearler Exchange has a rewards scheme. The scheme, Pearler Credit, assigns Reward Credit to posts that attract likes. Credits can be used to reduce fees.

Ben Nash, financial adviser and founder of Pivot Wealth, is one of the financial experts on the Pearler Exchange.

Nash says: “In Australia, awareness of financial issues is increasing but at the same time levels of financial literacy remain low. There is a huge volume of information available online, but there are a lot of mixed messages and hidden agendas that lead to confusion and frustration.

“Consumers are looking for a resource where they can find information from experienced investors and professionals they can trust, and access to an easily accessible and reliable source of this information will help investors make more confident and effective investment choices,” Nash notes.

Nicolaides says: “What attracts investors is our emphasis on helping young investors navigate their wealth journey over the next 20, 30 or 40 years, while giving them the tools to navigate any market environment. We think the Pearler Exchange will be a game changer.”

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The data challenges millennial stereotypes of poor financial skills and a lack of frugality with money.

Despite Australia’s worst market downturn since March 2020, well over half of investors on Australia’s leading long-term investing and wealth management platform, Pearler, remain undeterred in their investment strategy, pointing to a shift in long-term investment thinking and a growing focus on financial freedom.

Pearler’s latest annual investment insights research showed that 61.4 per cent of its users believe that the current market volatility has not affected their investment strategy, with a further 31.2 per cent of investors’ strategies only ‘somewhat affected’.

Co-Founder of Pearler, Nick Nicolaides, said: “Pearler promotes a long-term mindset in a market dominated by gamified trading. Savings rate, portfolio concentration, and how much time our investors are spending looking at the investment app – these are all signals of how healthy their relationship is with money, which we see as a major factor in the road to financial freedom.

“Our latest research shows that even though this market volatility may have forced speculative investors to sell-out or stop investing, our users, who are predominantly young people and over half women, are sticking to their long-term investment strategy. And this is an excellent sign,” he said.

The investor demographic of the 1,946 survey respondents was made up of 51 per cent women, with 66 per cent under 35 years of age.

Key results of the survey show:

• reflecting their long-term thinking, 92 per cent plan to hold their investments for 5 or more years, and 40 per cent for more than 20 years
• the data challenges millennial stereotypes of poor financial skills and a lack of frugality with money; 13 per cent of those polled earned less than $45k and still found a way to invest, and 44 per cent owned property while still investing on the side
• 80 per cent engaged in investing activities at least once a week, and 88 per cent read blogs or investment related books, listen to podcasts to help make decisions, implying a highly engaged and disciplined young investor base
• over half investors made their first investment in the last year, 55 per cent, and almost 80 per cent invest more every month.

“We collected this data during the worst week of the current market downturn. Our community is down 12.93 per cent over FY22, which we’re happy to disclose as we want our investors comfortable talking about the downside and learning from one another, and they’re not concerned,” said Mr Nicolaides.

“The wealth industry hasn’t adapted fast enough to younger generations’ appetite to self-educate, there is still with too much jargon, restrictive media paywalls and prohibitive costs for advice. So, the younger generations are learning from one another by sharing amongst friends, colleagues, and online communities.”

This survey is part of the “Pearler Year in Review” feature, allowing its investors to review and share their financial data to encourage self-reflection, accountability, but also to make investing more fun.

“The Pearler Year in Review is kind of a play on Spotify’s ‘Wrapped’ campaigns that fill our social feeds each December. We give investors some fun, and maybe a little nerdy, visuals of how they’ve been growing wealth over the last Financial Year,” said Mr Nicolaides.

“When markets are volatile, people naturally will care more about daily ups and downs. What we try to do is refocus that energy on how far you’ve come personally and the strength of your portfolio, rather than an arbitrary calculation of share prices.

“In this climate our goal is to minimise the risk of panic selling or trying to pick the bottom, which in the long-term has shown to hurt returns more than help them,” he said.

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Nick

Pearler, Australia’s leading long-term investing and wealth management platform, has  successfully closed a $7.8 million seed funding round led by Portage Ventures, a global fintech investor dedicated to empowering entrepreneurs motivated to reshape financial services. Australian venture capital firms Archangel Ventures and Ten13 also participated in the round.

Since Pearler’s launch in 2021, 53,000 customers have already signed up for Pearler, and the funding will allow co-founder Nick Nicolaides and his team to continue the development of core technology and expand product offerings further.

Pearler has developed and launched several foundational products that include:

• online brokerage providing access to Australian and US listed shares and ETFs.
• a micro-investing facility linked to a suite of ETFs that allows investors to make small regular investments plus round-ups from everyday transactions.
• ‘Autoinvest’, a sophisticated rebalancing tool that allows investors to set rules across multiple bank accounts and automate their spending, saving and investing.

“What attracts investors is our emphasis on helping young investors navigate their wealth journey over the next 20, 30 or 40 years while giving them the tools to navigate any market environment,” said Nick Nicolaides, Co-founder and CEO of Pearler. “We are not interested in enabling investing as a series of transactions. Rather, our process is about helping people set goals and achieve them over the long term in a simple and efficient way.

“We believe automation will play an increasingly important role in managing investments and it is central to our business development plans. For example, Autoinvest will continue its expansion to encompass areas such as bank transactions, superannuation top-ups and philanthropy,” he added.

“We are really excited to be backing Nick and the Pearler team as they build the next generation of holistic investing products,” said Stephanie Choo, Partner at Portage Ventures. “Our thesis is that there is a big gap in the market between trading single stocks and having an advisor do everything for you.”

Other plans that Pearler will pursue with this funding include:

• a new range of social wealth features, including the Pearler Exchange, an in-app group for discussing money issues with financial advisers.
• expansion into the New Zealand market as a stepping stone into other geographies.
• ‘Pearler Headstart’, an investing app for kids.

“We started with shares and ETFs because there is something there for everyone, but what we have always had as a goal is to establish a holistic wealth platform, giving investors tools they need to be successful with money,” said Nicolaides.

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Despite volatility in global and domestic equity markets and ongoing macroeconomic instability, buy orders on Pearler for investors in their late 20s to early 40s have outpaced sell orders 8 to 1 as younger investors continue to build wealth.

Nick Nicolaides, Co-Founder of Pearler, says: “The heightened market volatility this year has presented many challenges for younger investors who are looking to grow and accumulate wealth rather than protect it.

“However, despite these setbacks, what we see is that investors on our platform have continued to trade, buying at a rate of 89 per cent vs 11 per cent sells,” says Nicolaides.

“Month to month it’s been interesting to see how continued negative news has played a role. In February and March, we saw investors largely brush off the macro fears, with inflows at 91 per cent of all transactions. April saw some slight attrition at 88 per cent but that has rebounded back to 90 per cent.

“While older investors look to protect their wealth as they approach retirement, younger investors who are starting their investment journey or who are still early in the accumulation phase are obviously concerned that the opportunities for wealth accumulation are drying up compared to previous generations.

“Today younger investors have access to financial information and news across various sources. This knowledge and the current economic climate are a catalyst encouraging investors to take a more active approach to managing wealth and build diversified portfolios.

“Investments like ETFs and more cost-effective, user-friendly trading platforms like Pearler have also opened up investing to a younger demographic set of investors,” he notes.

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Despite a momentous difference in wages, similarities are common when it comes to share investing behaviour, says Nick Nicolaides, Co-Founder of Pearler.

“Our recent research shows that both women and men hold an average 2.5 assets, invest once a month, and allocate about 70 per cent of their portfolio to ETFs,” he said.

“We’ve seen financial independence blow up as a theme for young people, particularly women, who are becoming more proactive in dealing with historical hurdles like lower wages, minimum cheque sizes, access to education and support,” adds Ana Kresina, Head of Product at Pearler.

53 per cent of account holders at Pearler are women, with 50 per cent between the age of 26-35, and 30 per cent from 18-25 years.

The research shows women are investing, on average, 12 per cent of their post-tax income. This is slightly higher than its male investors, who invest 10 per cent of their relatively higher incomes.

Mrs Kresina said that alongside allocating a higher portion of their already reduced income to investing, what is also interesting is the product choice difference between men and women.

“What stands out, also, is that women are investing in ESG ETFs at a rate greater than double that of their male counterparts,” said Kresina.

“What we are hearing and then seeing in the data is that younger investors, especially women, want to make more ethical investment choices when considering their future – it’s something investors feel very strongly about,” she said.

Claire, an investor on Pearler notes: “I think about how my son will be in his early 30s in 2050, when the climate will be much more difficult to live and thrive in.

“I want to support industries that are doing the right thing for future generations and investing in decarbonisation and the circular economy – I will be able to enjoy retirement knowing I did right by him”

Other investors have taken a more granular approach, forming their own views on what companies represent ESG to them.

“To me, that is supporting those making a positive impact in ways such as socially, climate and sustainability leaders, companies with greater representation of women in senior leadership roles and on boards, clean technology and corporate governance,” notes Kelly Foreman, who invests on Pearler.

Foreman added: “You don’t need to compromise financial returns when considering the ESG criteria; there doesn’t need to be a performance sacrifice. It’s been really interesting to take a deep dive into companies that align with my values and meet the ESG criteria.”

Nicolaides added: “As we continue to grow the business and team, we know we need to remain inclusive through our product, services and marketing. If we build the right culture, the product and our investors will benefit.

“That’s why we share our community data publicly.”

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