Speaker 1: Kyoda.
Speaker 2: Welcome to Shared Lunch, brought to you by Chase's. My
Speaker 2: name is Halen Madison. We're looking at two things today.
Speaker 2: The first is the new Chasy's US five hundred key
Speaker 2: we Save fund, and given that, what is the state
Speaker 2: of the US markets. I'll be joined by Christa Leiba,
Speaker 2: the head of Global and multi asset Investments at Harbor
Speaker 2: Asset Management, and by our very own Chaza's head of
Speaker 2: super and Funds, Matt McPherson. But before we get started,
Speaker 2: here's some important information.
Speaker 3: Investing involves the risk you might lose the money you
Speaker 3: start with. We recommend talking to a licensed financial advisor.
Speaker 3: We also recommend reading product disclosure documents before deciding to invest.
Speaker 3: Everything you're about to see and here is current at
Speaker 3: the time of record.
Speaker 1: Welcome Chris and welcome Matt to the program.
Speaker 4: Thanks Hellen.
Speaker 2: Chair Za's has just launched its own US five hundred fund,
Speaker 2: which is managed by Vanguard and tracks the famous S
Speaker 2: and P five hundred. Matt, that's been pretty popular. What
Speaker 2: is it about this fund that that is so popular?
Speaker 5: Yeah, really popular with our investors. The single most popular
Speaker 5: option on Chersey's and I guess there's a few reasons that.
Speaker 5: The first is it's a great way of getting exposure
Speaker 5: to those large US companies without having to go through
Speaker 5: and pickstocks yourself. So it comes with diversification because it's
Speaker 5: over five hundred companies in the index. I guess. The
Speaker 5: other point is that ETFs tend to be much lower
Speaker 5: cost than say a managed fund, So there's sort of
Speaker 5: combination of reasons that they are really really popular.
Speaker 2: Chris, the US markets have been up and down, as
Speaker 2: we know, Tariffs are on, they're off, they're paused all
Speaker 2: over the show, and there's been a concern about the
Speaker 2: US economy investing in US stocks. Now, what would you
Speaker 2: say investors need to think about?
Speaker 4: So far this year, it has been all about tariffs,
Speaker 4: but there are actually some other things that might be
Speaker 4: slipping under the radar a little bit for investors because
Speaker 4: the talk has been so dominated by tariffs. And something
Speaker 4: I draw out is that we're in the midst of
Speaker 4: the US earning season. Currently, we've had ninety percent of
Speaker 4: companies report, We've had seventy seven percent of those companies
Speaker 4: beat consensus earnings expectations, So a lot of your viewers
Speaker 4: will be thinking that well from the early part of April.
Speaker 4: Actually markets have bounced back quite substantially. One of the
Speaker 4: key reasons for that has been the earning season, but
Speaker 4: it's it's also been the outlook statements from the companies
Speaker 4: that we've seen. Outlook statements have actually been relatively strong,
Speaker 4: a lot of resilience shown in the face of what
Speaker 4: is quite an uncertain tariff environment. Coming in to the year,
Speaker 4: the US market was expected to grow quite substantially. We
Speaker 4: had the average price target the S and P five
Speaker 4: hundred b substantially in the double digits from most south
Speaker 4: side brokers. Obviously, what we've seen so far has been
Speaker 4: a little bit disappointing, and part of that is a
Speaker 4: reflection of where the economic data is lay. So so
Speaker 4: far this year, the US has slowed down. In the
Speaker 4: first quarter, it looked to be slowing down quite markedly.
Speaker 4: So we have some real time measures of US GDP
Speaker 4: like the GDP now measure, and that came down quite substantially. Subsequently,
Speaker 4: though it's bounced back, So what we're seeing in the
Speaker 4: US is a slow down, but actually from a relatively
Speaker 4: high level. Now with tariffs, who knows is the real
Speaker 4: comment there? We will see ebbs and flows, but what
Speaker 4: I can point out over the last month is that
Speaker 4: we've gone from a point we're thinking that this is
Speaker 4: going to be absolutely disastrous and we're going to have
Speaker 4: extremely high tariffs to the direction of travel being one
Speaker 4: that's quite incrementally positive. But it is President Trump, and
Speaker 4: we know that it can be unpredictable and that can
Speaker 4: unsettle markets a bit. But I just don't think it's
Speaker 4: all about tariffs. Take into account that the US economy
Speaker 4: is slowing but not too bad, and earnings remain to
Speaker 4: be resilient, and for long term investors, share prices tend
Speaker 4: to follow earnings through time.
Speaker 1: Matt.
Speaker 2: When we look at the US five hundred fund that
Speaker 2: Cheesy's has launched, this is a key we saber fund.
Speaker 2: This is not just a fun that you can jump
Speaker 2: into on your Cheesys app if you like. That's a
Speaker 2: bit different pretty much to what has been out there. Now.
Speaker 1: Can you tell us how significant that changes.
Speaker 5: There are a few other key saber funds that allow
Speaker 5: you to invest into the SMP five hundred already. I
Speaker 5: guess what differentiates it from some of the other funds
Speaker 5: that we offer, though, is that it's one hundred percent
Speaker 5: invested into equities, so it comes it's classified as an
Speaker 5: aggressive option, it comes with a higher risk indicator, which
Speaker 5: means higher volatility people need to be comfortable with, and
Speaker 5: it comes with the potential of higher returns over the
Speaker 5: long term. Now, before we launched this fund, we actually
Speaker 5: prioritize to feature that enables people to split their key
Speaker 5: saver across multiple base funds. And the reason we did
Speaker 5: that is because people said they wanted to invest more
Speaker 5: than five percent of their kivsaver into the S and
Speaker 5: P five hundred.
Speaker 1: And that five percent is that because that's what the scheme.
Speaker 5: Has been a self select option since we launched our
Speaker 5: scheme a couple of years ago. They won more than
Speaker 5: five but they don't necessarily want to invest one hundred
Speaker 5: percent of their kipsaver into a fund that only invests
Speaker 5: in US equities. And that's how we're seeing it used
Speaker 5: so far. People are generally adding some US five hundred
Speaker 5: to their investment plan rather than replacing their managed fund
Speaker 5: provider completely.
Speaker 1: So is that how it works.
Speaker 2: You actually need to be able to just you could
Speaker 2: go one hundred percent. You obviously can go more than
Speaker 2: five percent, which you can now with self select, but
Speaker 2: you can't actually with self select invest in the US
Speaker 2: can you?
Speaker 5: Yet you can via some of the inside x ETFs
Speaker 5: that we offer.
Speaker 2: Chris, what do you think the risks are for investors
Speaker 2: thinking about the US markets? You've said that things look
Speaker 2: pretty positive yues has been a bit of a slow down.
Speaker 2: Some of those companies are really well established, you know,
Speaker 2: big balance sheets, all of that sort of thing, compared
Speaker 2: to what's happening in Australasia. Anyway, there's still always risk
Speaker 2: and there's volatility. So I suppose it depends on someone's appetite.
Speaker 2: What would you say?
Speaker 4: Yeah? So one of the rests I draw out is
Speaker 4: when you're investing in the US market, you're inheriting US
Speaker 4: dollar exposure as well. So the US share market may
Speaker 4: go really really well, but investors have to be prepared
Speaker 4: for the potential outcome that currency, particularly over the shorter term,
Speaker 4: might move things around a bit. So you could have
Speaker 4: a scenario we are investing in the US market, US
Speaker 4: market's done ten percent, you might be thinking your key
Speaker 4: we save has done quite well. However, it could be
Speaker 4: during a period where the US dollar is weakened and
Speaker 4: if the US dollars a weekends by ten percent by
Speaker 4: the time that is in New Zealand dollars, that that
Speaker 4: would be a flat sort of return. Look, that's not
Speaker 4: my base case by any means, but it's simply saying
Speaker 4: that there are two key levers in this investments, how
Speaker 4: the shares do, but also the currency on the US
Speaker 4: market overall. It's the world's biggest market for a reason.
Speaker 4: There's the key global share indices that people use tend
Speaker 4: to have a sixty to sixty five percent allocation to
Speaker 4: the US. So I wouldn't look at its risk profile
Speaker 4: as being that different than say a global share fund.
Speaker 4: There are some geographical considerations you need to take into account. Obviously,
Speaker 4: the US market will have sensitivities more to US policy.
Speaker 4: There can also be events that hit the US harder
Speaker 4: than other economies around the world. So those are just
Speaker 4: a few things to take into account when looking at
Speaker 4: a fund of that nature.
Speaker 2: Even so, Matt, given what has been happening in the
Speaker 2: US and the level of volatility, there would be some
Speaker 2: viewers and listeners probably thinking is my key we say
Speaker 2: was safe if I start investing even a proportion of
Speaker 2: it in the US.
Speaker 5: Of For sure, I think one thing that gives me
Speaker 5: a bit of confidence is there. There's a lot of
Speaker 5: uncertainty and change at the moment. We all appreciate that.
Speaker 5: I think if you go back in time, we would
Speaker 5: often say that same thing. At the moment, things feel
Speaker 5: very uncertain. And what we find is over time, those big,
Speaker 5: well run, successful American companies there's a lot of energy
Speaker 5: that comes from that and a lot of focus on
Speaker 5: solving problems. So one of the reasons these companies have
Speaker 5: become successful is because they are really good at solving
Speaker 5: hard problems. And so I guess I take a little
Speaker 5: bit of confidence that we've got some focus and some
Speaker 5: very big brains working on how to solve whatever the
Speaker 5: problem of the day is. And at the moment, it
Speaker 5: feels like the problem of the day is maybe some
Speaker 5: of the policies that's coming out of the States. But
Speaker 5: go back a couple of years ago, we also had
Speaker 5: at the time probably what felt like equally or even
Speaker 5: larger issues with things like the pandemic. And this is
Speaker 5: repeated over time.
Speaker 4: Matt. It's quite interesting. I was talking to a US
Speaker 4: invest or the other and we're talking about this very thing,
Speaker 4: and he said to me, just imagine that you were
Speaker 4: sitting there in twenty nineteen and someone came up to
Speaker 4: you and said, over the next five years, you're going
Speaker 4: to have a global pandemic, so you're all going to
Speaker 4: be locked down for months on end. Then once we
Speaker 4: get out of it, you're going to have the worst
Speaker 4: inflation that you've had in recorded history. Then we're going
Speaker 4: to increase interest rates by the most that we ever
Speaker 4: have in history, and the response to that will be
Speaker 4: a second bear market? And what sort of return would
Speaker 4: you expect over that time? And you kind of go, well,
Speaker 4: that's a lot to put into five years, And the
Speaker 4: answer is returns have actually been above average over that time. So,
Speaker 4: I mean the lesson in that for me is that
Speaker 4: sometimes when you look at the headlines, you can go, look,
Speaker 4: this is really scary, But the reality is, is it
Speaker 4: more or less scared than a pandemic, two or three
Speaker 4: bear markets depending on the time, and the highest inflation
Speaker 4: and interest rates ever, that probably seems a little bit
Speaker 4: light or even on par relative to those particular events.
Speaker 5: Yeah, I guess that's why understanding your investment horizon is
Speaker 5: probably the most important thing you can do before you're
Speaker 5: making any decisions, because in any one of those situations.
Speaker 5: If you were thinking short term, you probably would have
Speaker 5: been really upset, and if you're thinking long term, you
Speaker 5: probably would be you know, you're feeling confident that you've
Speaker 5: made the right decisions.
Speaker 2: There are some fund managers in Europe and the Light though,
Speaker 2: who have been pulling back a bit, not pulling out
Speaker 2: of the US markets. They're still in there, but they
Speaker 2: have been just gradually pulling back because they've been feeling
Speaker 2: a bit skittish about the Trump administration and they are
Speaker 2: actually thinking that structurally their allocation will be somewhat different.
Speaker 2: And this may be a longer term thing because it
Speaker 2: will happen gradually over time.
Speaker 1: Chris, just keen for your on that.
Speaker 4: Yeah, so starting point matters in this discussion because coming
Speaker 4: into twenty twenty five, foreign ownership of US shares was
Speaker 4: at all time highs. And if we think about the
Speaker 4: narrative coming into twenty twenty five, it's that the US
Speaker 4: has got the best companies at the forefront of AI
Speaker 4: economy is chugging away really, really well. And it's actually
Speaker 4: the reversal of some of those themes as opposed to
Speaker 4: Donald Trump himself that's actually driving and it's not in
Speaker 4: the figures I've seen is that they're certainly not leaving
Speaker 4: in their droves. I would more classify it as being
Speaker 4: they've gone from an overweight position and a very optimistic
Speaker 4: view of the market to probably nearer to longer term benchmarks. So,
Speaker 4: as I said, it's not all Trump. Deep seek was
Speaker 4: a really big factor in this. So we had coming
Speaker 4: into the year this deep consensus that the U US
Speaker 4: is just going to completely own AI. China won't get
Speaker 4: a look in because the US cut off the fastest
Speaker 4: chips are to China. Now they're able to innovate. I
Speaker 4: don't know how, it doesn't really matter how. The fact
Speaker 4: is they're there. They're a player. It's not just Deep Secrets.
Speaker 4: It's Baidu, it's ten Cent, it's Ali Barber. So that
Speaker 4: has been one of the reasons why we've seen some
Speaker 4: investor interest go away from the US. The other is
Speaker 4: what's happening in Europe at the moment. Now we're actually
Speaker 4: starting to see some fiscal impulse in Europe, so we've
Speaker 4: had some budget relaxation rules within the EU. It means
Speaker 4: that Germany has past a spending package that is going
Speaker 4: to pump a lot of stimulus into their economy. We're
Speaker 4: starting to see at the margin a little bit more
Speaker 4: stimulatory policy from France and Italy as well. So this
Speaker 4: is from economies that have been in austerity for the
Speaker 4: past fifteen years. So that has been a fundamental change
Speaker 4: which has led people to reduce their overweight positions from
Speaker 4: the US. I think we've just gone from a point
Speaker 4: where investors thought that the US was probably just their
Speaker 4: only choice or their best choice, to one where people
Speaker 4: are looking at Europe saying, look, valuations are a bit
Speaker 4: more reasonable over there, and actually things perhaps weren't as
Speaker 4: bad as we thought overall.
Speaker 2: Are we seeing those fund managers in Europe particularly okay,
Speaker 2: they might be investing in their own or they might
Speaker 2: be investing in, say, Asian markets.
Speaker 1: What do you think of that?
Speaker 4: I think where the tide has rarely turned, as in
Speaker 4: China and Hong Kong stocks. You'll remember the narrative around
Speaker 4: just the past couple of years actually, of many people
Speaker 4: questioning whether these stocks are investable or not. The latest
Speaker 4: starter we're seeing is that investors are starting to go
Speaker 4: back over there. Why well, we're starting to see a
Speaker 4: little bit of stimulus come out of China. They know
Speaker 4: that Trump's tariffs are going to be a big challenge
Speaker 4: on their economy, so they're meaningfully pumping the accelerator when
Speaker 4: it comes to stimulus in their economy. And actually the
Speaker 4: other thing too is the stocks there are cheap. Now,
Speaker 4: if we are to draw one criticism of the US market,
Speaker 4: it is that the valuations in the market are relatively high.
Speaker 4: So investors might look at some of the companies in
Speaker 4: Asia and go, well, actually, relative valuation wise, although there's risks,
Speaker 4: I'm happy to step in.
Speaker 1: Now.
Speaker 2: If we get back to the US five hundred fund
Speaker 2: that she has launched. You said it was the most
Speaker 2: popular feature that we've been asked for for key we Saver,
Speaker 2: But are people putting me their money where their mouths?
Speaker 2: Are they actually investing and deciding that will use this
Speaker 2: for Keysaber.
Speaker 5: Yeah, we launched about a week ago. We've seen quite
Speaker 5: a good response on people switching to our scheme. We've
Speaker 5: also seen a lot of our members add the US
Speaker 5: five hundred fund to their investment plans or rebalance their
Speaker 5: portfolios to include more of it. And the third group
Speaker 5: we've seen is around ten percent of the people who
Speaker 5: have signed up in that last week haven't been in
Speaker 5: key SABER before. And that's really interesting because I think
Speaker 5: through a combination of great experience and access to a
Speaker 5: wide range of product, we're managing to engage people who
Speaker 5: for whatever reason, have not been part of KISABER in
Speaker 5: the past. And what we see is that a lot
Speaker 5: of these people are self employed.
Speaker 2: Of course, just thinking about other SCA classes, we've focused
Speaker 2: on shares predominantly in this conversation, What about bonds?
Speaker 1: What about gold that's having another resurgence.
Speaker 2: Are you seeing with global investors and investors here at
Speaker 2: home even thinking about other asset classes beyond equities?
Speaker 4: Yeah, so bond yeards been attractive for some time. We
Speaker 4: saw as the market was really worried about tariffs, we
Speaker 4: saw bond yields fall quite substantially, so they got down
Speaker 4: to around three point eight percent for the US ten
Speaker 4: year yield, So that provided a bit of a cushion
Speaker 4: as shares were falling quite substantially over that time. Since then,
Speaker 4: we've actually seen a bounce back up, and part of
Speaker 4: that is just around the worry that the market has
Speaker 4: around the amount of debt that the US might need
Speaker 4: to raise and the more supply of bonds. Obviously that
Speaker 4: puts pressure on bond yields, So the returns there have
Speaker 4: been okay. I still think on a go forward basis
Speaker 4: they look relatively attractive. Gold has been an interesting one,
Speaker 4: and I suspect part of the resurgence that we've seen
Speaker 4: in gold is there has been an uptick in the
Speaker 4: US and inflation expectations. So there's a University of Michigan
Speaker 4: measure where they go out and survey people and go,
Speaker 4: you know, what do you think inflation will be over
Speaker 4: particular timeframes. Now that measure for the five to ten
Speaker 4: year inflation is at the highest level since the mid nineties,
Speaker 4: So inflation expectations out there are quite high. So people
Speaker 4: are looking at what are the inflation hedges that I
Speaker 4: convest in, and gold through time has proven to be
Speaker 4: quite a solid inflation hedge for people. I think the
Speaker 4: other aspect, too, is there is some talk around about
Speaker 4: the US continuing to be the world's global reserve currency.
Speaker 4: I think that's been over egged a little bit. I
Speaker 4: think the US has a very solid position as continuing
Speaker 4: to be the world's reserve currency. But at these times
Speaker 4: where you talk about tariffs, you can sometimes get these
Speaker 4: narratives taking on a life of their own. So I
Speaker 4: think that has led people to say, okay, well, let's
Speaker 4: diversify our holdings a bit. We'll have some holdings in
Speaker 4: US dollars, holdings in euro, holdings in Japanese yen, which
Speaker 4: is a popular safe haven currency, but let's also have
Speaker 4: an allocation to gold as well. And that really skyrip,
Speaker 4: isn't it?
Speaker 1: Just thinking about more modern asset classes.
Speaker 2: If you like crypto, do you see a time when
Speaker 2: people be able to put their key we save it
Speaker 2: into crypto in the same way that we're offering the
Speaker 2: share options.
Speaker 5: Yeah, I mean right at the moment, we're looking at
Speaker 5: us self select, which is the next chapter after the
Speaker 5: US five hundred fund for us with our product, and
Speaker 5: you know, we're trying to work out what to include.
Speaker 5: We start with a principle that we want to provide
Speaker 5: as much access as we can and let our members
Speaker 5: decide on where to put their own money. And so
Speaker 5: the crypto ETFs that have launched, they are widely held,
Speaker 5: there is a lot of liquidity. Some of them have
Speaker 5: actually considerably lower volatility than some of the big name companies,
Speaker 5: say at the top of the S and P five
Speaker 5: hundred list. So I think it's a really good argument
Speaker 5: to say, maybe via an ETF, that crypto should be
Speaker 5: something that people can allocate. Again, with our guardrails kind
Speaker 5: of process built into our product, that may be up
Speaker 5: to five percent of your portfolio with exposure to crypto
Speaker 5: is something that someone can make a choice about rather
Speaker 5: than us making that choice.
Speaker 4: For Matt, what's interesting with cryptocurrency is the trends that
Speaker 4: we're seeing come out of the US with regards to this.
Speaker 4: So you mention ETFs, well, what that has enabled is
Speaker 4: for people to have a really safe way to get
Speaker 4: exposure to cryptocurrency. That's actually helped enable better institutional participation
Speaker 4: in the cryptocurrency market. So it's interesting in the US,
Speaker 4: You've got the likes of Yale Harvard who have said
Speaker 4: that they have exposure to cryptocurrencies. You're also starting to
Speaker 4: see kind of state pension funds and even some sovereign
Speaker 4: wealth funds participate. To be honest, i'm surprised, you know,
Speaker 4: back in many years ago, I kind of looked at
Speaker 4: it and didn't quite get it. But it really has
Speaker 4: come a long way in terms of just who can participate, accessibility,
Speaker 4: but also institutional support for the sector as well.
Speaker 2: Matt, So how long before we might see self select
Speaker 2: stocks individual stocks in the US being available for people
Speaker 2: in their key we say a scheme.
Speaker 5: Well, the good thing is, in order to launch the
Speaker 5: US five hundred fund, a lot of the hard work,
Speaker 5: I suppose the infrastructure is in place for us. So
Speaker 5: that is our next priority that we've started actively working
Speaker 5: on now, as you self select won't put absolute time
Speaker 5: on it because it's really important that we go through
Speaker 5: our testing and validation steps and get this right before
Speaker 5: we release it. Current best estimate is I think middle
Speaker 5: of the year.
Speaker 2: What about things like private equity, because it's pretty popular infrastructure,
Speaker 2: that kind of thing.
Speaker 5: Yeah, private equity has been really topical in twenty twenty five,
Speaker 5: and for good reason. If we look at Ossie, which
Speaker 5: we always do because they had a fifteen year head
Speaker 5: start on us with superannuation, their super funds have a
Speaker 5: much higher exposure to private assets. They're super funds are
Speaker 5: investing in anything from large infrastructure projects to small startup companies.
Speaker 5: We tend to be a little bit less adventurous in
Speaker 5: New Zealand at this stage, but there's a lot of
Speaker 5: talk about it, and I think there's actually a lot
Speaker 5: of will we need to overcome some of the challenges
Speaker 5: with regard to valuations and liquidity because that's tough for
Speaker 5: private companies. But yeah, I'm confident. I think as kwisaver
Speaker 5: continues to mature, that'll happen. We're at that kind of
Speaker 5: tipping point at the moment where these things start becoming
Speaker 5: really viable for super funds.
Speaker 2: We've got the budget coming up. There is if you like,
Speaker 2: rumors that the government might cut its contribution, which is
Speaker 2: five hundred plus dollars a year. Chris, do you think
Speaker 2: that's going to have any effect at all.
Speaker 4: I'm not sure it will on Kiwi saber participation because
Speaker 4: key We Saber fulfills a few key functions.
Speaker 3: You know.
Speaker 4: One, it's really well regulated and people get accessed to
Speaker 4: a wide range of investments, right, some lower cost and
Speaker 4: more passive and some high cost and more active. So
Speaker 4: I think it's working really well in Most people I
Speaker 4: talk to are really positive about key We Saver. Second,
Speaker 4: obviously you still get your employer contribution, which as meaningful
Speaker 4: might not be quite as high as Australia, but it's
Speaker 4: still meaningful for people. So I think overall it would
Speaker 4: be a shame. Don't get me wrong to see changes,
Speaker 4: because I think what makes schemes popular is actually when
Speaker 4: they're largely left alone by politicians so people can invest
Speaker 4: with confidence.
Speaker 5: Might take almost sorry, Chris, I must take the opposite here.
Speaker 5: I think we're overdue for a policy review KEYSAB. We're
Speaker 5: only a tiny little scheme, but I think we've tried
Speaker 5: to be as vocal as we can. I'll come back
Speaker 5: to agreeing with Chris now. With the government contribution is
Speaker 5: that it's not targeted anyway, and what I'd like to
Speaker 5: see actually is targeted and targeted at the people that
Speaker 5: are being left behind. And I mentioned self employed before,
Speaker 5: and you mentioned the kickstart and children. The fact that
Speaker 5: the government contribution is not available to anyone under eighteen
Speaker 5: seems contrary to good sense, which would be to get
Speaker 5: people involved in QPSAB as early as possible and incentivize that,
Speaker 5: and incentivize people who are self employed because they are
Speaker 5: not receiving having if they receive an employer contributions coming
Speaker 5: out of their own pocket twice and so you know,
Speaker 5: there's I think let's have a look at the policy settings.
Speaker 5: But I do take your point that the more that
Speaker 5: you that you kind of mess around with it, So
Speaker 5: any changes need to be really well signaled.
Speaker 4: Oh look, and I'm more thinking about messing with it
Speaker 4: in a negative way, and if want to mess with
Speaker 4: it in a positive way around higher contributions.
Speaker 1: We've actually looked at that ourselves, haven't We met.
Speaker 5: What we heard when we got involved in kvsaver is
Speaker 5: industry saying that contributions need arise, and we heard the
Speaker 5: Retirement Commission say largely the same thing. But the voice
Speaker 5: that was kind of missing from that was the people
Speaker 5: who were going to have to make the higher contributions,
Speaker 5: and that's you and me, that's the members. So we
Speaker 5: went out and asked a bunch of our investors, not
Speaker 5: our necessarily our KIV saver members, but just people on
Speaker 5: the Cheesies platform. It was overwhelming how many people said,
Speaker 5: I get it. I'd prefer to have a little bit
Speaker 5: less in my take home this week in order to
Speaker 5: have more retirement. It was seventy eight percent who supported
Speaker 5: that idea, which is phenomenal because it's counter to everything
Speaker 5: that we assumed people would think, Like at the height
Speaker 5: almost of the cost of living crisis.
Speaker 2: Chaps, we probably need to wrap it up there, just
Speaker 2: wondering what would you like to see with key We
Speaker 2: savor on terms of innovation in the near turn, not
Speaker 2: so much the long term the near term.
Speaker 4: So I think the private asset discussions really interesting. It's
Speaker 4: one where I think we need a little bit of
Speaker 4: a mindset shift around fees. For example, is one of
Speaker 4: them right? You know, these are more expensive assets to
Speaker 4: get your hands on, but they can come with a
Speaker 4: higher reward as well. I think the other part of that, too,
Speaker 4: is that there is a global trend of companies staying
Speaker 4: private for longer, and we see companies realizing more of
Speaker 4: their value in the private markets in many cases than
Speaker 4: they do in the public markets. I also saw a
Speaker 4: stat the other day, and I won't get the percentage
Speaker 4: completely right, but the amount of companies valued over one
Speaker 4: hundred million dollars in the uses that are private versus
Speaker 4: public is something like three or four to one. So
Speaker 4: when we look at our investments, why do we have
Speaker 4: all of it in the area that has less exposure.
Speaker 4: We've got companies out of New Zealand like Crimson Education,
Speaker 4: Black Halter. We've got companies that are really starting to
Speaker 4: be relevant on the global stage. We've seen a few
Speaker 4: of them even acquired this year, so that's global investors
Speaker 4: going I want to slice of that company. So I'd
Speaker 4: love to see that development further, and hopefully as an industry,
Speaker 4: we can get together, navigate the challenges, and just make
Speaker 4: it happen.
Speaker 5: I guess as an innovator, we're asked all the time
Speaker 5: who we're competing against, who do we see as our
Speaker 5: biggest threat, And the answer is consistently just apathy. It's
Speaker 5: just that whole thing that people don't think about their kipisaver.
Speaker 5: They'll put more time into thinking about what they're can
Speaker 5: have for tonight, then they will about where their retirement
Speaker 5: is invested, and no matter who it's invested, I just
Speaker 5: want people to just to try and give that a
Speaker 5: little bit more time. I guess the innovation is important
Speaker 5: because it comes along from time to time and maybe
Speaker 5: it helps people to consider. So I don't not really,
Speaker 5: I don't have a strong place on where the innovation
Speaker 5: comes from. I just want to see it continue so
Speaker 5: that people will continue to engage a little bit more
Speaker 5: with their retirement savings.
Speaker 1: Yep, I think everyone would like to see that.
Speaker 2: Thanks both of you for being with us today and
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