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Speaker 1: the time of recording.
Speaker 2: Hi, Matt, it's been pretty exciting the last few days.
Speaker 2: We've released the self select for the US for our
Speaker 2: keysaver members. How has it been going?
Speaker 3: Easily the most requested feature that we've had since we
Speaker 3: launched keysaver about two years ago. We launched fifty five
Speaker 3: US companies and ETFs, the largest, most widely held, most
Speaker 3: popular investment options on the Shares's platform from the US
Speaker 3: markets are now available for people to self select into
Speaker 3: their kisaver investment plans. So it's early days, you know,
Speaker 3: it's just after lunch time on the on the launch day.
Speaker 3: We are seeing our existing customers updating their plans to
Speaker 3: include some UIs companies you know, and some new customers
Speaker 3: also who want to use the investment plan builder to
Speaker 3: have a look at how it could work for them.
Speaker 3: And then you know, some people signing up and asking
Speaker 3: us questions and things.
Speaker 2: It is early days, but can you tell us maybe
Speaker 2: what are the most popular stocks thus far.
Speaker 3: Yeah, I mean the most popular stocks. I don't think
Speaker 3: we'll be any surprise because they are the most popular
Speaker 3: stocks I guess on the charesies platform, but also the
Speaker 3: most popular stocks for a lot of Q saver managers
Speaker 3: too if you look into what they're holding their funds.
Speaker 1: So the.
Speaker 3: You know, the top choices so far are companies like Microsoft, Meta,
Speaker 3: Amazon and Videos in There, which has been really popular
Speaker 3: on the platform for a while now. The rocket Lab
Speaker 3: was actually the first the first US option we made
Speaker 3: available in our beta program, which was a nod I
Speaker 3: guess to the fact that it's a New Zealand founded
Speaker 3: company that is on the US markets as well.
Speaker 2: Now you mentioned the investment builder, can you explain to
Speaker 2: listeners and viewers what that actually is.
Speaker 3: Yes. Our QV Saver scheme is a bit unique in
Speaker 3: that we've introduced the idea that anyone can go in
Speaker 3: and have a bit more control over the individual companies
Speaker 3: that make up their QV service scheme. So we thought
Speaker 3: it was really important to let people do that in
Speaker 3: a really safe and kind of experimental way outside of
Speaker 3: having to use their actual money. So we have an
Speaker 3: Investment plan Builder. It's on our website, you can go
Speaker 3: through and correct your investment plan, see what fees, see
Speaker 3: what level of risk, look at all the different companies
Speaker 3: and ETFs and funds and things we have, and you
Speaker 3: can do it in a way that you can update
Speaker 3: it and if you like it, you can actually import
Speaker 3: it into the app. But for most people, that's where
Speaker 3: we're directing them to have a look and see how
Speaker 3: this all works because it is a unique concept.
Speaker 2: So it's things like how much risk, how much I'm
Speaker 2: going to pay and fees that sort of thing, so
Speaker 2: I sort of get a bit of a taste before
Speaker 2: I commit.
Speaker 3: Yeah, because everyone's kepsaver can actually be different with us,
Speaker 3: and so we can't just say, oh, you're paying one
Speaker 3: percent for your kivsaver, because I could choose, you know,
Speaker 3: a fundat much lower than that that I can add
Speaker 3: some of my own picks, and the price level and
Speaker 3: the risk level of each portfolio could be quite different.
Speaker 3: And so you can do that in a way where
Speaker 3: we will do all that maths for you and present
Speaker 3: it back in a way that you can compare to
Speaker 3: other schemes.
Speaker 2: The other thing that seems quite exciting is is you
Speaker 2: can get exposure to things that you might not normally
Speaker 2: have it your key we save, for example, through ETFs.
Speaker 2: I understand we can now invest in crypto.
Speaker 3: That's right. So the criteria for what makes it into
Speaker 3: as an investment option is driven by a few things.
Speaker 3: I think our ultimate goal is to provide as much
Speaker 3: access as possible. But the options that we include, we
Speaker 3: also have liquidity hurdles, so we have a minimum size
Speaker 3: of the companies. We also have a widely held rule
Speaker 3: because what we're doing is we are turning each of
Speaker 3: these options into a PI fund. We have some additional yeah,
Speaker 3: into a tax efficient PIE fund. We have some additional
Speaker 3: obligations about ensuring that the options are widely held. And
Speaker 3: so you know, we've started with fifty five companies and
Speaker 3: funds and that will expand over time when we're interested
Speaker 3: in feedback from people what they think is missing and
Speaker 3: what they do and don't like. But yeah, we have
Speaker 3: one crypto option, which is the Icehars ETF. We have
Speaker 3: a few other companies like that that we actually have
Speaker 3: some volatility warnings on within the the you know, the
Speaker 3: crypto ETF has been quite volatile since it's been launched,
Speaker 3: as have a few other companies like rocket Lab. As
Speaker 3: I mentioned earlier on.
Speaker 2: So Matte just before we finished, let's explain how the
Speaker 2: fund works. I mean, I can't put everything into Tesla,
Speaker 2: can I correct?
Speaker 3: So we have a concept of guardrails, and guard rails
Speaker 3: are investment limits that we apply to your investment plan,
Speaker 3: which is your standing instructions on how to invest contributions
Speaker 3: as they arrive into the scheme. And those guardrails require
Speaker 3: you to have at least fifty percent of your contributions
Speaker 3: invested into a base fund, which is a diversified fund.
Speaker 3: You can have one hundred percent invested into a divestified
Speaker 3: fund if you want, but no less than fifty percent.
Speaker 3: And then we have around one hundred and fifty companies
Speaker 3: in ETFs from New Zealand and the States. The maximum
Speaker 3: for each of those is five percent per selection. So
Speaker 3: I could have ten companies at five percent each, or
Speaker 3: I could have one hundred companies at half a percent each,
Speaker 3: for example, included in my investment plan, and as money
Speaker 3: arrived into the scheme, it would be invested according to
Speaker 3: those proportions.
Speaker 2: Are you predicting that people will be a real mix
Speaker 2: of those percentages or is there like a typical investor.
Speaker 3: Yeah. Today, what we've seen is around half of our
Speaker 3: members have picked at least one company and on average
Speaker 3: around ten percent of contributions are invested into self select
Speaker 3: and ninety percent into managed funds.
Speaker 2: So still slightly conservative if.
Speaker 3: We Yeah, look the guardrails are there to enforce the divestfication.
Speaker 3: It's a it's a foundation of risk management when it
Speaker 3: comes to investing, as is the investment plan concept, which
Speaker 3: means your dollar cost averaging, you're buying no matter whether
Speaker 3: the price is up or down. And so you know,
Speaker 3: the base fund is like our course satellite type approach
Speaker 3: as well. So we've got you know, a number of
Speaker 3: different things working together here because qpsaber is a long
Speaker 3: term investment and we want to make sure that we
Speaker 3: get the risk levels you know, managed as well as
Speaker 3: we can.
Speaker 2: So, Matt, if people are interested, how do they go
Speaker 2: how do they go about getting into the self select
Speaker 2: for KEEPSAB.
Speaker 3: I'd recommend you have a look at the Investment Plan Builder,
Speaker 3: So head to our website. You'll find your way to
Speaker 3: the Kiwi Saver sit. It's pretty well signposted. Have a
Speaker 3: look at it. There's nothing like being able to actually
Speaker 3: have a play with something when it's not your money
Speaker 3: and get comfortable with the idea and if so, you know,
Speaker 3: follow the prompts.
Speaker 2: Thanks Matt. It's about probably watching the space and seeing
Speaker 2: what investors do.
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