Citi invests in Starburst to advance secure AI data solutions
Starburst provides a data platform that allows organisations to unify access to distributed data across cloud, on-premises, and hybrid environments without requiring data duplication or complex migrations.
The company aims to deliver AI and analytics solutions built on an open and hybrid data lakehouse foundation. This approach is designed to support global enterprises in creating intelligent data applications while maintaining security and scalability.
According to Starburst, its platform brings artificial intelligence closer to data storage, referred to as "lakeside", which is intended to reduce the friction traditionally experienced between data, governance, and AI processes. The company reports that its technology is currently utilised by 10 of the top 15 banks worldwide.
The investment from Citi was made through the Markets Innovation & Investments division. Lee Smallwood, Global Head of Markets Innovation and Investments at Citi, said, "We're excited to collaborate with Starburst to help shape the future of enterprise data and AI. Our strategic investment reflects Citi's commitment to advancing a modern, AI-ready data infrastructure, prioritising governance, performance, and flexibility to power mission-critical financial services in a global, regulated environment."
Justin Borgman, Chief Executive Officer and Co-Founder of Starburst, commented on the partnership by stating, "Our mission is to meet the data challenges faced by complex, global institutions. We're proud to provide our clients with a secure, high-performance platform that enables access to data wherever it lives. Citi's investment reinforces our mission to remove barriers between data and insight, especially in industries where speed, trust, and governance are non-negotiable."
Starburst has indicated it is continuing to expand its presence in regulated industries that are increasingly adopting AI as a core part of transformational strategies. The company says its platform is built upon an open data stack, incorporating Trino and Apache Iceberg to provide federated access and governed collaboration, supporting compliance and data lineage for enterprises.
Starburst states its platform is trusted by enterprises in over 60 countries, including four of the top five global banks. The company highlights strategic partnerships with providers such as AWS and Dell Technologies to support interoperability for clients across multiple environments.
Starburst reports that, by focusing on performance, governance, and control, it aims to enable organisations handling intensive and sensitive data workloads to unlock more value from their information and support the adoption of compliant AI solutions.
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RNZ News
16-07-2025
- RNZ News
'Dramatic shift' that could leave KiwiSaver members better off
Aggressive funds have returned 10.89 percent a year over five years, and 9.34 percent over 10 years. Photo: RNZ A "dramatic" shift of KiwiSaver investments into riskier funds should make New Zealanders better off in the long run, if past trends hold true. The Financial Markets Authority (FMA) released research this week noting the significant shift in risk of KiwiSaver investments. The proportion of KiwiSaver in funds that are risk category five, with high volatility, has quadrupled from 10 percent in 2021 to more than 40 percent in 2024. Riskier funds can be expected to be more volatile but over the long term should produce better results. They are generally recommended for investors who still have a significant period of time until they need to access their investments. Morningstar data shows that aggressive funds have returned 10.89 percent a year over five years, and 9.34 percent over 10 years. That is compared to 3.07 percent a year over 10 years for conservative funds, 4.47 percent for moderate funds, 6.18 percent for balanced and 7.68 percent for growth. Data director Greg Bunkall said cash investments' returns had lagged the rate of inflation over that time. The FMA said the proportion of KiwiSaver investments in lower risk funds dropped from 30 percent to 10 percent over the same 2021-to-2025 period. Part of this was due to the change to default funds, which now require them to be balanced. But it said there were other factors at play, too. "In the period prior to the Covid-19 global pandemic, interest rates were historically low, and inflation was low and stable. As a result, many fixed-income assets provided low returns. On the other hand, stock markets have performed very well in most years since 2017, and the few periods of weakness quickly reversed. "The strong performance and relative stability of stock markets may have therefore made higher-risk investments more attractive to investors. The persistence of this situation over several years may have contributed to the observed shift in preference for higher-risk investments, illustrating adaptive expectations among investors." It said market performance could also have affected the risk rating of funds. Spikes of volatility in 2020 and earlier this year affect funds' performance history. A number of providers have recently launched "high growth" funds that invest almost solely in equities. FMA director of markets, investors and reporting John Horner said the FMA was not necessarily implying that people were in the wrong fund or that providers were advising members towards higher-risk funds. "The observed increase in the risk categorisation of KiwiSaver funds appears to reflect a combination of factors including policy settings, investor behaviour, and market volatility. "KiwiSaver is a long-term savings regime for retirement, and for most long term investments a higher risk strategy will be appropriate. "We note that as KiwiSaver has been in existence for a while and become more mature there are more options available, including higher risk options, and there is also more material available to allow investors to educate or inform themselves about risk vs reward." Fisher Funds general manager of KiwiSaver David Boyle said the increase in investments in riskier funds was a good thing for investors wanting to grow retirement savings over the long term. He said consumers knew more about the role of growth assets in a long-term savings scheme like KiwiSaver. Fund mangers were responding to consumer interest and providing education on the risks and benefits of different fund types. Investors had experienced the Covid downturn and seen the recovery. "The advent of platforms that allow investors to build their own portfolios allows providers to launch single sector specialist offerings that are often at the riskier end of the spectrum." He said members still had choice and there were many lower-risk and savings options available. Booster chief executive Di Papadopoulos agreed New Zealanders were becoming more sophisticated in assessing their time horizons and figuring out if they could handle more risk to target higher returns. "It appears people are moving to higher risk funds that align with them not needing their KiwiSaver money for retirement anytime soon," she said. "At Booster, we have seen the benefit of these decisions. Moving from a balanced fund to a growth fund increases projected balances at retirement significantly. "A key factor is how soon or long in the future your might need to access your KiwiSaver, such as if you want to use it to buy your first home, or for your retirement. 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RNZ News
15-07-2025
- RNZ News
What would happen if a KiwiSaver provider failed?
There is always the risk that investments could go wrong, but KiwiSaver schemes do have some protections in place. File photo. Photo: 123rf Some Australian investors may be facing the loss of their investments after the failure of a superannuation provider, but KiwiSaver members are being reassured that the situation is different here. Australian media has reported that up to A$450 million may have been lost by the First Guardian Master Fund, which went into liquidation early this year. Co-director David Anderson was reported to be accused of transferring funds into his own bank account. David Callanan, general manager of corporate trustee services at Public Trust, one of the supervisors of New Zealand's KiwiSaver schemes, said there were different protections for KiwiSaver members, which should prevent such a scenario. Providers are subject to oversight from a supervisor, who can also choose to appoint a third-party custodian or act as custodian themselves. 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RNZ News
29-06-2025
- RNZ News
You can DIY your KiwiSaver, but should you?
Photo: RNZ More KiwiSaver schemes allow investors to choose their own investments - but should you do it? This week, Sharesies expanded its 'self select' KiwiSaver option to include US shares and exchange-traded funds. Members can now add more than 150 New Zealand and US investments to their KiwiSaver portfolios, alongside 'base funds'. Up to half a KiwiSaver member's plan can be allocated to their own investment picks, with a maximum of 5 percent in each pick. To varying degrees, Craigs Investment Partners, NZ Funds, Nikko, InvestNow, Kernel and KiwiWRAP also allow investors to select where their money goes. Sharesies super and funds general manager Matt McPherson said investors said they wanted more connection and control over what was available. "People who want to take some of the control, but not all of it are who we're building for." He said about 40 percent of Sharesies KiwiSaver members had some of their own picks and about 10 percent of their contributions going into those. He said the most popular self-select pick was the S&P500. "What people like about that is that it's very low cost and it's very passive." Investments in big global brands were also proving popular, such as Microsoft, Apple and Amazon. Each stock was in its own pie fund for Sharesies investors to simplify tax considerations. Genesis Advice financial adviser Edward Glennie said it was sensible for KiwiSaver schemes to have limits on how much choice investors could have, "If you're allowed to put 100 percent on one particular stock, that might compromise your returns, particular if you're unadvised." He said he would work with clients through KiwiWRAP to help them set up a suitable portfolio. Self-select options could sometimes have higher costs, but he said that was probably the direction the market was headed. It also allowed people to get away from the 'one manager' model that had been dominant since the scheme launched 18 years ago. "I think the market is gradually opening up." Data director Greg Bunkall said it was difficult to anticipate most individuals outperforming fund managers with their own picks. "In Australia, studies comparing self-managed superannuation fund (SMSF) portfolios with APRA-regulated funds present mixed results, with superior returns observed among SMSFs that possess substantial balances and leverage the expertise of financial advisors in their decision-making processes." McPherson said the option would not be the right thing for all investors. "Fund managers do great work of finding undervalued companies and investing in them, so that's why the product is built around this idea of, if you want to, you can do a bit of it, as opposed to having to take on all the responsibility." McPherson said Sharesies' model was more like the self-directed options seen in Australian, than full self-management. Kernel Wealth founder Dean Anderson said members could "mix and match" from Kernel's 21 funds. "We've found overall investors are very informed, with fund selection often reflecting an investor's age and life stage. Of course, Kernel isn't a default provider, so investors have typically made an educated decision to move to us and have realised the benefits of being engaged with their KiwiSaver. "Consistently outperforming the market over time is incredibly challenging, but KiwiSaver members, who customise their plans, often have a specific purpose in mind. Some may want 100 percent of their KiwiSaver invested in global shares, others might prioritise values by choosing ESG-centric funds or they could be aiming to diversify away from other assets they own, selecting funds that balance their overall wealth. "As investors approach the time to access their KiwiSaver, the self-select function becomes even more valuable. They might start to bucket their assets-moving funds for the first few years of retirement spending into a cash fund, while keeping another bucket in higher-growth assets to support their financial needs 10, 20 or even 30 years down the line. "This flexibility is incredibly useful, rather than being forced to only be in one strategy."
