{"id":3902,"date":"2018-12-09T23:17:27","date_gmt":"2018-12-09T23:17:27","guid":{"rendered":"https:\/\/raizinvest.com.au\/investors\/?p=3902"},"modified":"2020-10-28T01:07:49","modified_gmt":"2020-10-28T01:07:49","slug":"what-is-a-custodian-and-what-do-they-mean-for-raiz-users","status":"publish","type":"post","link":"https:\/\/raizinvest.com.au\/investors\/blog\/what-is-a-custodian-and-what-do-they-mean-for-raiz-users\/","title":{"rendered":"What Is a Custodian and What Do They Mean for Raiz Users?"},"content":{"rendered":"<p><img class=\"aligncenter wp-image-3907 size-full\" src=\"https:\/\/raizinvest.com.au\/investors\/wp-content\/uploads\/2018\/12\/locks.jpeg\" alt=\"Locks on chain\" width=\"1920\" height=\"1279\" srcset=\"https:\/\/raizinvest.com.au\/investors\/wp-content\/uploads\/2018\/12\/locks.jpeg 1920w, https:\/\/raizinvest.com.au\/investors\/wp-content\/uploads\/2018\/12\/locks-640x426.jpeg 640w, https:\/\/raizinvest.com.au\/investors\/wp-content\/uploads\/2018\/12\/locks-1024x682.jpeg 1024w, https:\/\/raizinvest.com.au\/investors\/wp-content\/uploads\/2018\/12\/locks-1280x853.jpeg 1280w, https:\/\/raizinvest.com.au\/investors\/wp-content\/uploads\/2018\/12\/locks-320x213.jpeg 320w\" sizes=\"(max-width: 1920px) 100vw, 1920px\" \/><\/p>\n<p>You just deposited $10 into your Raiz account, the funds leave your bank to be used to buy Exchange Traded Fund (ETF) units, and your Raiz balance increases. But where, exactly, are these ETF units held for you?<\/p>\n<p>They are not held by Raiz, but are held by an independent Custodian.<\/p>\n<p>When you deposit funds into your Raiz account, there are a number of actions that happen before you see your balance increase. This diagram, taken from our <a href=\"https:\/\/raizinvest.com.au\/product-disclosure-statement\/\"><span style=\"text-decoration: underline;\"><em>PDS<\/em><\/span><\/a>, provides an overview of what happens when you invest into your account.<\/p>\n<p>&nbsp;<\/p>\n<figure id=\"attachment_3903\" aria-describedby=\"caption-attachment-3903\" style=\"width: 812px\" class=\"wp-caption aligncenter\"><img class=\"wp-image-3903 size-full\" src=\"https:\/\/raizinvest.com.au\/investors\/wp-content\/uploads\/2018\/12\/custodian.png\" alt=\"Structure of the Raiz Fund showing the role of the custodian\" width=\"812\" height=\"644\" srcset=\"https:\/\/raizinvest.com.au\/investors\/wp-content\/uploads\/2018\/12\/custodian.png 812w, https:\/\/raizinvest.com.au\/investors\/wp-content\/uploads\/2018\/12\/custodian-640x508.png 640w, https:\/\/raizinvest.com.au\/investors\/wp-content\/uploads\/2018\/12\/custodian-320x254.png 320w\" sizes=\"(max-width: 812px) 100vw, 812px\" \/><figcaption id=\"caption-attachment-3903\" class=\"wp-caption-text\">Structure of the Raiz Fund<\/figcaption><\/figure>\n<p>As you can see, Raiz doesn\u2019t hold any ETF units. When we buy ETF\u2019s on behalf of investors, the actual ETF units are then held by an independent Custodian (Perpetual Corporate Trust Limited).<\/p>\n<p>&nbsp;<\/p>\n<h3><strong>What is a Custodian? <\/strong><\/h3>\n<p>Put simply, a Custodian\u2019s job is to hold assets (in this case ETF units) on behalf of the investors in the registered managed investment scheme (Raiz). They could be thought of as a bank for Raiz, whose only role is to hold and safeguard the assets of the fund. The chosen Custodian, Perpetual Corporate Trust Limited, is a respected and leading provider of custody services. Perpetual Corporate Trust is a member of the Perpetual Limited group which has provided trustee and custodial services since 1886. Perpetual Limited is an ASX listed company.<\/p>\n<h3><strong>What benefits does a Custodian provide to Raiz users? <\/strong><\/h3>\n<ul>\n<li>The primary benefit of our fund\u2019s assets being held by a custodian is the assurance an independent custodian provides Raiz users. Hypothetically, if Raiz was to suddenly go out of business, the assets are still held by the Custodian and the dollar value of every user\u2019s account would be returned to them. The ETF units, held by Perpetual Corporate Trust, would be sold on market by the Custodian so that their value in AUD would then be deposited back into users\u2019 bank accounts.<\/li>\n<li>Another benefit is the checks and balances a Custodian provides to Raiz users. They have a compliance function to ensure everything matches up.<\/li>\n<\/ul>\n<p>If you\u2019d like to read more in-depth about our Fund structure and Custodian, have a <span style=\"text-decoration: underline;\"><a href=\"https:\/\/raizinvest.com.au\/product-disclosure-statement\/#Benefits_of9\">look through our PDS<\/a>\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<hr \/>\n<p>&nbsp;<\/p>\n<h3><strong>Don\u2019t have the Raiz App?<\/strong><\/h3>\n<p>Download it for free in the App store or the Webapp below:<\/p>\n<figure id=\"attachment_3372\" class=\"wp-caption aligncenter\">\n<figure id=\"attachment_3372\" aria-describedby=\"caption-attachment-3372\" style=\"width: 351px\" class=\"wp-caption aligncenter\"><a href=\"https:\/\/raizinvest.com.au\/gettheapp\"><img class=\"wp-image-3372 size-full\" src=\"https:\/\/raizinvest.com.au\/investors\/wp-content\/uploads\/2018\/08\/download-app.png\" sizes=\"(max-width: 351px) 100vw, 351px\" srcset=\"https:\/\/raizinvest.com.au\/investors\/wp-content\/uploads\/2018\/08\/download-app.png 351w, https:\/\/raizinvest.com.au\/investors\/wp-content\/uploads\/2018\/08\/download-app-320x77.png 320w\" alt=\"download-raiz-app\" width=\"351\" height=\"84\" \/><\/a><figcaption id=\"caption-attachment-3372\" class=\"wp-caption-text\"><a href=\"https:\/\/raizinvest.com.au\/gettheapp\">Click to download the Raiz app<\/a><\/figcaption><\/figure>\n<p>&nbsp;<\/figure>\n<p><em><span style=\"font-weight: normal !msorm;\"><strong>Important Information<\/strong><\/span><\/em><\/p>\n<p><em>The information on this website is general advice only. This means it does not take into account any person\u2019s particular investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the product.<\/em><\/p>\n<p><em>A Product Disclosure Statement for Raiz Invest and\/or Raiz Invest Super are available on the Raiz Invest website and App. A person must read and consider the Product Disclosure Statement in deciding whether, or not, to acquire and continue to hold interests in the product. The risks of investing in this product are fully set out in the Product Disclosure Statement and include the risks that would ordinarily apply to investing.<\/em><\/p>\n<p><em>The information may be based on assumptions or market conditions which change without notice. This could impact the accuracy of the information.<\/em><\/p>\n<p><em>Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz Invest or Raiz Invest Super.<\/em><\/p>\n<p><em>Past return performance of the Raiz products should not be relied on for making a decision to invest in a Raiz product and is not a good predictor of future performance.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>You just deposited $10 into your Raiz account, the funds leave your bank to be used to buy Exchange Traded Fund (ETF) units, and your Raiz balance increases. But where, exactly, are these ETF units held for you? They are not held by Raiz, but are held by an independent Custodian. When you deposit funds [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false},"categories":[1],"tags":[],"yst_prominent_words":[2583,2580,982,2578,2576,2575,98,975,977,981,976,983,2582,2579,2577,97,82,125,239,181]}