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Speaker 1: Now can we save? Our investments have hit a new milestone,

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Speaker 1: topping over one hundred billion dollars for the first time

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Speaker 1: in New Zealand. The amount of money in managed funds

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Speaker 1: has increased by nineteen percent, and what that means is

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Speaker 1: that sixty two percent of us are now invested in

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Speaker 1: a Key we Save a fund. John Horner is the

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Speaker 1: director of the Financial Markets Authority. Hey, John, hi, have

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Speaker 1: is there a particular reason why our Key we Save

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Speaker 1: investors investments have jumped up that much in.

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Speaker 2: Just a year. Look, it's probably a bounce back from

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Speaker 2: the prior year where returns on investment we're negative. So

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Speaker 2: we always look at these things long term. Great to

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Speaker 2: see your bounce back, but that's the long term accounts.

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Speaker 1: What do you make of the number of withdrawals or

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Speaker 1: the value of the withdrawals?

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Speaker 2: Possibly a sign of the times that's there's cost of

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Speaker 2: living challenges, that's difficult economic conditions, and so it's probably

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Speaker 2: Key We Saver working as it was designed to allow

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Speaker 2: those withdrawals to happen.

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Speaker 1: How much okay, so how much of the money that's

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Speaker 1: being withdrawn is being taken out to basically just pay

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Speaker 1: the bills?

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Speaker 2: We won't know the reasons and for for the withdrawals,

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Speaker 2: I mean, hardship applications. It's quite a high threshold. It's

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Speaker 2: not a matter if I can't pay my bills just now,

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Speaker 2: but it's quite a significant threshold to overcome. That's dealt

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Speaker 2: with by the supervisors SABER providers. They assess the hardship

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Speaker 2: applications and make those decisions.

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Speaker 1: Yeah, just off the top of my head. With something

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Speaker 1: like five billion that's been taken out in the last year, Yeah.

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Speaker 2: I think that's right. Yeah, five billion was drawn by

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Speaker 2: members and so that'll also be your over sixty fives

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Speaker 2: as well. So they're the ones who are actually using

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Speaker 2: their Kiwisaver in their retirement.

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Speaker 1: Right, and the key we say, sorry, the over sixty

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Speaker 1: fives actually make up the vast majority of that about

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Speaker 1: three billion. But how do we know they don't need

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Speaker 1: it for hardship.

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Speaker 2: Well, they can use it for whatever reason they like, right,

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Speaker 2: So you're right, I mean, if you're in your retirement,

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Speaker 2: Keyisaver is all about your financial wellbeing and your retirement years.

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Speaker 2: Some of those folks will still be working, maybe part time,

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Speaker 2: maybe full time, but TV tapers available for them to

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Speaker 2: use as they wish.

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Speaker 1: And so I suppose we can't break it out and

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Speaker 1: look at how many of them are taking it up

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Speaker 1: because they're leaving the country altogether or anything like that.

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Speaker 2: Can we look the numbers are as reported? There's an

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Speaker 2: also a lot of numbers in there, so I can't

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Speaker 2: speak to all of them. But yeah, the withdrawals that

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Speaker 2: the headline figures for the withdrawals as the number week

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Speaker 2: we focus on.

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Speaker 1: What do you make of only sixty two percent of

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Speaker 1: us being invested in the key we save a fund?

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Speaker 1: I suppose glass half full. That's not a bad number,

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Speaker 1: but glass half empty, there's still a fair chunk of

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Speaker 1: us who aren't invested.

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Speaker 2: That's right. We'd always like it to be more. And

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Speaker 2: but obviously, like the members who are part of KI,

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Speaker 2: we savor to be contributing. But again, you know, relative

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Speaker 2: to the times we're going through at the moment, we

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Speaker 2: think the contributions have held pretty steady. We'd always like

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Speaker 2: those who have cessed to make contributions to come back

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Speaker 2: and start those again just as soon as they can.

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Speaker 1: John most people are in growth funds. Now, does that

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Speaker 1: reflect the age of the investors that they are of

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Speaker 1: a younger profile, or is this something else going on here.

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Speaker 2: Maybe not so much the age, more of the investment

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Speaker 2: horizon that they're looking at as their long term investment.

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Speaker 2: They've got a long term horizon sort of ten years

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Speaker 2: and plus. Then growth funders most likely to be the

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Speaker 2: right tun for them.

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Speaker 1: John, it's good to talk to you. Thank you very much,

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Speaker 1: really appreciate it. John Horner, Director of the Financial Markets Authority. Heither,

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Speaker 1: can you please look into the realize that agents losing

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Speaker 1: their licenses for not completing the Maori cultural courses. Yes,

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Speaker 1: I'm going to raise that with you. You're going to

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Speaker 1: hear this. You're going to have to hear this. The

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Speaker 1: old Fletcher Building thing seems to be an old albatross

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Speaker 1: hanging around some people who are associated with its next

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Speaker 1: at the moment, A Bruce Hassel. Maybe Buff may be

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Speaker 1: regretting that he ever had anything to do with it.

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Speaker 1: He was the chair of Fletcher Building. He has now

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Speaker 1: just withdrawn his nomination for election to the Victor Board.

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Speaker 1: Completely unrelated, but has decided to withdraw his nomination for

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Speaker 1: election because feedback from shareholders. Obviously when it was not

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Speaker 1: very positive about his previous role as the chair of

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Speaker 1: Fletcher Building. The Victor's current chair, Doug mckaye's expressed disappointment

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Speaker 1: on behalf of the board said Hassel had made you know,

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Speaker 1: significant contributions since he joined last October and blah blah blah,

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Speaker 1: and he had the unanimous support of his board colleagues,

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Speaker 1: but unfortunately the shareholders don't love it, and so he's out.

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Speaker 1: Twelve past six

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Speaker 2: For more from Heather Duplessy Allen Drive, Listen live to

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