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Speaker 1: Shame solely with US harbor Asset Management. Shane, Good evening,

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Speaker 1: Cure Ran, good to have you on. As we head

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Speaker 1: into the end of the year. How has the year

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Speaker 1: been for investors in your view?

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Speaker 2: Oh, look, it's a great question, Race, Ryan. It's actually

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Speaker 2: been a good year. It's been all about inflation coming down,

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Speaker 2: which has allowed central banks to cut these official interest rates.

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Speaker 2: But it's actually been pretty challenging for how to deal

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Speaker 2: with things like wars and some pretty meaningful elections. Ryan,

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Speaker 2: it's really challenged sentiment. But yeah, we've certainly seen bond

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Speaker 2: years lower. Been a strong year for global share returns,

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Speaker 2: particularly the US market up over twenty eight percent, usually

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Speaker 2: on share market don't okay, up eight percent, and some

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Speaker 2: of the more speculative assets like crypto and goal they've

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Speaker 2: had sort of all time high level. So yeah, it's

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Speaker 2: been a pretty good year.

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Speaker 1: Government announced last week and we covered this the changes

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Speaker 1: that are going to come to regulator, changes that will

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Speaker 1: give key we savor providers the chance to invest in

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Speaker 1: private assets. Do you think that we will see lots

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Speaker 1: of that happening.

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Speaker 2: Yeah, a really really good point. So you come back

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Speaker 2: to you know what, why does this legislation change or

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Speaker 2: regulation change count because at the moment, as a kevsaver provider,

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Speaker 2: if you come in and say I want to change provider,

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Speaker 2: I have to liquidate all the assets so that you

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Speaker 2: can move your funds to another location. That's hard to

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Speaker 2: do with private assets. So this new proposed regulation of

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Speaker 2: our side pocketing, so it means those in business are

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Speaker 2: less liquid private assets. They can be treated separately when

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Speaker 2: you change from keV servers. So I think it will

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Speaker 2: open up the opportunities here. It'll take some time. We've

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Speaker 2: got a lot of water run under the bridge in

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Speaker 2: terms of you know, what is the regulation, But yeah,

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Speaker 2: I think it's a good start point. It's an important

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Speaker 2: move for QV savers and for New Zealand over time.

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Speaker 1: Does that mean we could see keV saver funds investing

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Speaker 1: in k WE Bank all the ferries.

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Speaker 2: Look, I think it's possible. You know, we are seeing

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Speaker 2: you know, it depends about the quality of investments and

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Speaker 2: the price of those assets. The key thing here is

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Speaker 2: it opens up a new pipeline of opportunities to grow

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Speaker 2: qvs as wealth. Remember that's three and a half million

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Speaker 2: Kiwis have a q so it's really crucially growing there well,

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Speaker 2: so yeah, if Kiwi Saver, sorry, if kwibank stacks up,

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Speaker 2: then there'll be a good advertise. And yes, maybe even

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Speaker 2: the enter Island theories if the right frame. There's a

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Speaker 2: little way to go there though. I've got to say.

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Speaker 1: We've kicked off the week with some new data, some

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Speaker 1: economic data. Are you seeing any green shoots there?

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Speaker 2: Yeah? Look, it was an interesting day, a bit of

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Speaker 2: a mix. Some inflation data to continue to slow, which

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Speaker 2: allows the Reserve Bank and ZELD to continue to cut,

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Speaker 2: and we've seen a little bit of improvement and business

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Speaker 2: sentiment for QI households is where it really matters. Food

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Speaker 2: prices were down for them to de member month, down

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Speaker 2: minus one percent versus the previous month, and residential rents

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Speaker 2: were out er point two of a percent. It sounds like, man,

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Speaker 2: well that's not down, it's actually slowing from where it was,

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Speaker 2: so again taking pressure off. But the interesting thing was

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Speaker 2: we saw another lift in business sentiment in terms of

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Speaker 2: the New Zealand Performance of Services Index. Now that is

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Speaker 2: an index that measures confidence from service providers. If it's

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Speaker 2: about fifty means they're growing expanding. If it's below fifty,

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Speaker 2: then they're contracting. It was forty nine point five. It

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Speaker 2: was almost expanding up from forty six point two last month,

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Speaker 2: so hitting in the right direction. But you know our

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Speaker 2: friends from the economists, the ins of the ir insid

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Speaker 2: III should so did a carly Server economists and use

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Speaker 2: An economists. They're expecting no growth for twenty four to

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Speaker 2: twenty five, so they're still about beerish. Hard to get

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Speaker 2: them excited.

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Speaker 1: There, Shane, Thank you for that, Shane Soley, Harbor Asset Management.

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