+ Why the US share markets?
With a total value of over $30 trillion, the US share markets account for 85% of all global investing, yet for Kiwis, it's always been too hard and too expensive to participate. Hatch gives you affordable access to largest share markets in the world: the NYSE and the Nasdaq.
Our homes, jobs and most of our investments are in New Zealand. And while we love this country, that's a lot of eggs in one tiny basket. We believe a smart investment portfolio is a diversified one, and that geography shouldn't be a barrier to building our wealth our way.
+ Who and what is Hatch?
Hatch is Kiwi Wealth's digital investment platform. Kiwi Wealth is Kiwibank’s sister company and is run by Kiwis, for Kiwis. We're part of Kiwi Group Holdings Limited, which is owned by NZ Post, The NZ Super Fund and ACC. Hatch gives you easy and affordable access to the US share markets by partnering with DriveWealth, a US broker-dealer and member of SIPC (Securities Investor Protection Corporation). SIPC is a non-profit that protects your shares up to $500,000 if a member runs into financial trouble and your investments are impacted. We’ve broken down how it works here.
+ How do I get started?
It's free to sign up and takes 30 seconds (or less). You can immediately browse shares and start a watchlist.
Individuals: You need to be over 18 to use Hatch. When you’re ready to invest, you’ll need to verify your identity and answer a few questions online to satisfy Anti-Money Laundering (AML) obligations. It takes less than 3 minutes and you just need your New Zealand driver’s licence or NZ passport handy.
Trusts: Family trusts are welcome to use Hatch. The sign up process is a little different, so get in touch and we'll send you some quick and painless sign up forms. Once we have the information we need, we create your account for you and will let you know when you can sign in and start investing. We're pretty speedy, so expect to be up and running quickly.
+ How do I deposit and withdraw money?
As long as you have uninvested money in your Hatch account, you can withdraw it to any verified bank account whenever you like.
We take care of the currency exchange so it's as easy as making a payment from your NZ bank account. You only pay the FX fee when you deposit and withdraw money.
+ How do I invest my money?
+ I’m new to investing, is Hatch for me?
Delightfully intuitive, Hatch makes investing easy and rewarding for novices and experts alike. Thanks to fractional investing and our low fees, we’ve made it simple for someone to start with a small amount and learn as they go.
Let us know if you want a bit more info about how to get started. We can send you some links to books, articles and blog posts that other investors have found helpful!
Fees & tax
+ What are your fees?
We charge fees for 3 services: When you exchange money, make a trade and to file your US tax returns on your behalf. Get a complete list of our fees here. Nothing is hidden, and there are no management or custodial fees. We can do this because Hatch is a completely digital platform, which means we can pass the savings we make from using technology, directly onto you.
+ Do I need to pay tax?
On dividends Yes, but it's pretty painless. Your US withholding tax is deducted before any dividends reach your Hatch account and we give you everything you need to file your NZ tax return (and claim any tax credits!). Find out more here
When you sell shares: This will depend on your individual situation. We've written a guide here
+ Do I own my shares?
Yes. But, for safety and convenience, your name isn’t on the share certificate. The certificate will show that the shares are held "in DriveWealth's name for the benefit of the Hatch customer". This is a common practice in the US and is known as “In Street Name”.
Holding your shares In Street Name doesn't diminish your rights as the owner. It removes the need to match each share certificate to each customer, which makes settlement faster and reduces the risk of loss that comes with the transfer of physical share certificates. It also lowers transaction costs, which is how we pass those savings onto you.
+ Is there a minimum investment amount?
There’s no minimum. You can invest as little or as much as you like.
+ What companies and funds can I access?
We provide access to over 2,900 companies and over 500 exchange-traded funds from Vanguard, BlackRock, and more listed on the NYSE and Nasdaq. It's free to sign up, browse shares and and create a watchlist.
+ Can I invest in IPOs?
There were 190 IPOs in the US in 2018, and 2019 is set to be a banner year for well-known billion-dollar companies hitting the US share markets. To date, Hatch has welcomed Uber, Lyft, Slack, Pinterest, Beyond Meat, Chewy, and Zoom (and many others!) and we're eagerly awaiting Airbnb, WeWork, Peloton and more.
With over 200 private companies valued at over $1 billion in the backlog, these are record IPO numbers. Hatch customers can invest as soon as a new listing hits the share markets, allowing us to be among the first to benefit from the success of the world's most recognisable brands.
+ How do dividends get paid out?
All dividends you receive through Hatch are paid out in USD into your Hatch account. You can choose to reinvest your dividends by buying more shares, or to withdraw them whenever you like. See the types of dividends you receive through Hatch here.
+ What is an ETF (Exchange Traded Fund)?
An ETF is a fund that you can invest in through the share markets (i.e. exchange traded). Think of the fund as a shipping container full of investments like shares and bonds. If you invest in an ETF, you buy a share in the container and own a tiny slice of every investment in it. Hatch lists over 500 ETFs, some aim to give you the most diversification possible by including all companies in an entire market in one fund (the US, emerging markets). Other ETFs let you benefit from trends, indexes, sectors and other investment strategies. There are so many ETFs available on Hatch that finding one that matches up with your investing goals is highly likely! Find more info about ETFs here
Trust & safety
+ What happens if Hatch goes under?
Hatch is a Kiwi Wealth brand and doesn’t hold your shares. We provide access to the US share markets via our partner DriveWealth, a US-regulated broker-dealer. If we decide to shut down the Hatch platform, you’d be given significant notice to sell up and get your money out, or transfer your shares from DriveWealth to a different US broker.
In the case of a DriveWealth insolvency, under US regulation, the customer (that’s you) is the first creditor. This means that your cash and securities flow back to you in the event of a liquidation. DriveWealth also has protections in place in the US such as Securities Investor Protection Corporation (SIPC). Each customer account is insured for up to $500,000 (with a maximum of $250,000 in cash). You can find out more here
+ What’s with ICBCFS - a Chinese bank as a custodian?
Industrial and Commercial Bank of China Financial Services (ICBCFS) custodies Hatch customers’ shares. They’re a member of Securities Investor Protection Corporation (SIPC).
Headquartered in New York City, ICBCFS provides US equity brokerage, custody services, and global clearing in all major markets. ICBCFS offers a broad array of services to over 4 million corporate clients and approximately 430 million individual customers around the world. ICBCFS is a wholly owned subsidiary of ICBC Bank, one of the largest banks in the world. ICBC maintains a Moody’s "A1" and S&P "A" credit rating and operates in 34 countries with 252 branch offices.
Find more FAQs and answers in our Hatch Help Centre.