1 00:00:00,600 --> 00:00:04,800 Speaker 1: Whatever your aspirations, we can help you get there, not 2 00:00:04,880 --> 00:00:08,240 Speaker 1: just with investing, but now with a high interest flexible 3 00:00:08,280 --> 00:00:10,879 Speaker 1: savings account and a key we save a scheme too, 4 00:00:11,560 --> 00:00:14,440 Speaker 1: share ease for the money you've got big plans for. 5 00:00:16,480 --> 00:00:20,640 Speaker 1: Whatever your aspirations, we can help you get there, not 6 00:00:20,760 --> 00:00:24,120 Speaker 1: just with investing, but now with a high interest, flexible 7 00:00:24,120 --> 00:00:26,759 Speaker 1: savings account and a key we save a scheme too, 8 00:00:27,400 --> 00:00:30,280 Speaker 1: share ease for the money you've got big plans for. 9 00:00:35,200 --> 00:00:38,400 Speaker 2: Kirakoto Garth Bray here with Shared Lunch. Today we are 10 00:00:38,440 --> 00:00:41,640 Speaker 2: with Anna Scott, the CEO of Smart, talking about the 11 00:00:41,720 --> 00:00:45,440 Speaker 2: for new exchange traded funds ETFs that they are bringing 12 00:00:45,440 --> 00:00:48,360 Speaker 2: to market. But first, some important information that you really 13 00:00:48,400 --> 00:00:49,479 Speaker 2: need to consider. 14 00:00:49,200 --> 00:00:51,760 Speaker 3: Investing involves the risk you might lose the money you 15 00:00:51,800 --> 00:00:55,080 Speaker 3: start with. We recommend talking to a licensed financial advisor. 16 00:00:55,840 --> 00:00:59,640 Speaker 3: We also recommend reading product disclosure documents before deciding to invest. 17 00:01:00,000 --> 00:01:02,320 Speaker 3: Everything you're about to see and here is current at 18 00:01:02,320 --> 00:01:02,760 Speaker 3: the time of. 19 00:01:02,680 --> 00:01:04,960 Speaker 2: Recording and a great to be here. Thank you for 20 00:01:05,000 --> 00:01:08,039 Speaker 2: inviting us, Thanks for coming. Let's dive into those four 21 00:01:08,120 --> 00:01:12,160 Speaker 2: new exchange traded funds that you are getting ready to launch. 22 00:01:12,440 --> 00:01:14,720 Speaker 2: I think the day that this podcast goes out right. 23 00:01:14,840 --> 00:01:15,600 Speaker 4: Yep, there's day. 24 00:01:16,120 --> 00:01:18,200 Speaker 2: So if I look at the sorts of things you're 25 00:01:18,200 --> 00:01:20,959 Speaker 2: talking about here, we're talking about a bitcoin ETF, we're 26 00:01:21,000 --> 00:01:24,839 Speaker 2: talking about gold yep, and exposure to US tech stocks 27 00:01:24,840 --> 00:01:27,840 Speaker 2: as well as our own large caps and the nz X. Yeah, 28 00:01:27,880 --> 00:01:30,440 Speaker 2: so what made those four so attractive? 29 00:01:30,640 --> 00:01:32,399 Speaker 4: There's a lot of interest in bitcoin, so shall we 30 00:01:32,400 --> 00:01:32,800 Speaker 4: start there? 31 00:01:33,040 --> 00:01:33,840 Speaker 2: Yeah, for sure. 32 00:01:34,080 --> 00:01:36,120 Speaker 4: Really the thing about bitcoin is it has got a 33 00:01:36,160 --> 00:01:38,760 Speaker 4: lot of interest and people are on either side of 34 00:01:38,800 --> 00:01:41,800 Speaker 4: that whether you really believe in cryptocurrency and digital currency 35 00:01:41,800 --> 00:01:44,080 Speaker 4: going forward or you don't, and either way that's okay. 36 00:01:44,480 --> 00:01:46,600 Speaker 4: But we really believe that our job and part of 37 00:01:46,600 --> 00:01:49,639 Speaker 4: the branding around smart is to bring choice to people. 38 00:01:49,960 --> 00:01:53,320 Speaker 4: So part of that is bitcoin, and for us, what 39 00:01:53,360 --> 00:01:56,080 Speaker 4: we've done is we've brought that home to the local exchange. 40 00:01:56,120 --> 00:01:58,120 Speaker 4: That means that when you want to get into if 41 00:01:58,120 --> 00:02:01,040 Speaker 4: you believe in cryptocurrency as a a good place to 42 00:02:01,120 --> 00:02:03,440 Speaker 4: have some of your investment money, not all of it, 43 00:02:03,480 --> 00:02:06,000 Speaker 4: but some of it, then you don't have to worry 44 00:02:06,000 --> 00:02:08,600 Speaker 4: about getting into the world of how do you buy 45 00:02:08,919 --> 00:02:11,840 Speaker 4: a digital currency, how do you store it, what is 46 00:02:11,880 --> 00:02:14,080 Speaker 4: your security key or your what it looks like, and 47 00:02:14,080 --> 00:02:16,800 Speaker 4: how you're going to manage that ongoing basis. Instead, what 48 00:02:16,880 --> 00:02:18,840 Speaker 4: you can buy is an ETF that is going to 49 00:02:18,919 --> 00:02:23,239 Speaker 4: track the price of bitcoin and you're going to participate 50 00:02:23,320 --> 00:02:24,520 Speaker 4: in its ups and downs. 51 00:02:24,720 --> 00:02:27,520 Speaker 2: It has been seen. I guess it feels really like 52 00:02:27,560 --> 00:02:30,040 Speaker 2: about five minutes ago, it was not really even seen 53 00:02:30,080 --> 00:02:32,959 Speaker 2: as a credible kind of an asset. Now, I mean 54 00:02:33,080 --> 00:02:35,359 Speaker 2: you're talking about a product, but effectively someone could put 55 00:02:35,360 --> 00:02:38,880 Speaker 2: their nana into effectively, right, Yes, so it's really really 56 00:02:38,919 --> 00:02:42,120 Speaker 2: made the successible. It is a very volatile kind of 57 00:02:42,160 --> 00:02:46,040 Speaker 2: investment though, bitquen. That'll be reflected obviously as the ETF 58 00:02:46,280 --> 00:02:47,240 Speaker 2: matches that value. 59 00:02:47,360 --> 00:02:49,680 Speaker 4: Yes, And so if you've been investing in any of 60 00:02:49,720 --> 00:02:51,840 Speaker 4: our ETFs for a while, you'll know that each has 61 00:02:51,840 --> 00:02:54,560 Speaker 4: a product disclosure statement we call it a PDS, and 62 00:02:54,600 --> 00:02:56,320 Speaker 4: in there we need to do a risk rating. So 63 00:02:56,360 --> 00:02:58,799 Speaker 4: when you look at that risk rating, that's a reflection 64 00:02:59,000 --> 00:03:01,320 Speaker 4: of the volatilities. So that's the ups and downs that 65 00:03:01,360 --> 00:03:03,920 Speaker 4: you're going to go over the lifetime of holding that product. 66 00:03:04,160 --> 00:03:07,119 Speaker 4: But it also generally reflects the return that you think 67 00:03:07,120 --> 00:03:10,000 Speaker 4: you're going to get to pay that volatility off. So 68 00:03:10,080 --> 00:03:13,000 Speaker 4: putting your nana into it or yourself really comes back 69 00:03:13,000 --> 00:03:15,200 Speaker 4: to what are you wanting to hope to achieve with that? 70 00:03:15,480 --> 00:03:17,440 Speaker 4: So what are your goals? How long do you want 71 00:03:17,440 --> 00:03:19,720 Speaker 4: to hold it for? Because if you're going through the curves, 72 00:03:19,760 --> 00:03:21,280 Speaker 4: then you're getting out at the top of the bottom 73 00:03:21,360 --> 00:03:23,360 Speaker 4: or the middle, and when might you want your money 74 00:03:23,360 --> 00:03:25,680 Speaker 4: out of that? But for a lot of people, now 75 00:03:26,080 --> 00:03:29,959 Speaker 4: that digital currency has become a valid currency around the world, 76 00:03:30,160 --> 00:03:33,120 Speaker 4: and we do believe that bringing that choice home to 77 00:03:33,200 --> 00:03:36,320 Speaker 4: our local investors means you've got a way to access 78 00:03:36,360 --> 00:03:39,160 Speaker 4: that and New Zealand dollars on our own inzets. 79 00:03:39,440 --> 00:03:41,440 Speaker 2: A lot of the commentrary I read around this is ah, 80 00:03:41,560 --> 00:03:44,680 Speaker 2: some people that are nervous about bitcoin. Other people say, 81 00:03:44,760 --> 00:03:47,800 Speaker 2: look one to three percent and your portfolio is an 82 00:03:47,800 --> 00:03:50,800 Speaker 2: acceptable risk. It's a very personal choice, isn't it. How 83 00:03:50,880 --> 00:03:51,720 Speaker 2: much you get into this. 84 00:03:51,840 --> 00:03:53,840 Speaker 4: It is a personal choice. And I think that if 85 00:03:53,840 --> 00:03:55,600 Speaker 4: you look back to the starting of all of us 86 00:03:55,680 --> 00:03:58,360 Speaker 4: investing rope cash, and then you add on with OK 87 00:03:58,560 --> 00:04:01,400 Speaker 4: bonds and then equity, and now we're getting into more 88 00:04:01,440 --> 00:04:04,960 Speaker 4: and more different thematic or disaggregated views of that were 89 00:04:05,000 --> 00:04:08,280 Speaker 4: than the equity space and the alternative assets. So yes, 90 00:04:08,360 --> 00:04:11,560 Speaker 4: bitcoin is an alternative asset. A lot of people are 91 00:04:11,640 --> 00:04:14,680 Speaker 4: using it for their own personal transactions and a method 92 00:04:14,680 --> 00:04:17,640 Speaker 4: of payment around the world. I Shares, who we've partnered 93 00:04:17,680 --> 00:04:21,200 Speaker 4: with on this product, have that bitcoin that they went 94 00:04:21,360 --> 00:04:25,000 Speaker 4: live with, and it's the largest market cap bitcoin ETF 95 00:04:25,160 --> 00:04:28,160 Speaker 4: in the world at the moment, and so worldwide there 96 00:04:28,200 --> 00:04:29,760 Speaker 4: is a lot of interest and belief in it. 97 00:04:30,160 --> 00:04:33,800 Speaker 2: So what sort of insights lead you to think this 98 00:04:34,279 --> 00:04:35,479 Speaker 2: is what we need to do right now? 99 00:04:35,640 --> 00:04:37,719 Speaker 4: So we did two things. We looked at the local 100 00:04:37,760 --> 00:04:40,440 Speaker 4: market and we got insights into the data of where 101 00:04:40,440 --> 00:04:42,800 Speaker 4: people are investing. So a lot of New Zealanders are 102 00:04:42,800 --> 00:04:46,719 Speaker 4: already investing in bitcoin anyway, either direct or going offshore 103 00:04:46,760 --> 00:04:49,200 Speaker 4: to buy that kind of product. And we also talked 104 00:04:49,240 --> 00:04:52,120 Speaker 4: to global partners and looked at global data and research, 105 00:04:52,400 --> 00:04:56,120 Speaker 4: including talking to I Shares and it being their fastest 106 00:04:56,120 --> 00:05:00,560 Speaker 4: growing ETF and being part of that marketing suite that 107 00:05:00,640 --> 00:05:04,320 Speaker 4: they see real insight and interest into mean that we 108 00:05:04,360 --> 00:05:06,480 Speaker 4: thought that there was a real case for adding it 109 00:05:06,520 --> 00:05:09,360 Speaker 4: to the choice of funds that are available here at home. 110 00:05:09,560 --> 00:05:11,160 Speaker 2: So if you break it down, then you've got people 111 00:05:11,160 --> 00:05:15,280 Speaker 2: that are already happy to invest directly in cryptocurrencies or 112 00:05:15,320 --> 00:05:17,880 Speaker 2: in bitcoin through an exchange, a coin exchange going there 113 00:05:17,920 --> 00:05:21,000 Speaker 2: and just literally buying a commodity. And you've got others 114 00:05:21,000 --> 00:05:26,880 Speaker 2: that are already using existing offshore listed ETFs, and now 115 00:05:26,880 --> 00:05:30,279 Speaker 2: you're offering this. Can you explain why I'd want to 116 00:05:30,279 --> 00:05:31,919 Speaker 2: be in one or other of those and why I 117 00:05:32,040 --> 00:05:34,720 Speaker 2: might choose this rather than one of those other two. 118 00:05:34,880 --> 00:05:37,279 Speaker 4: I think that comes into therefore coming back to what 119 00:05:37,320 --> 00:05:39,880 Speaker 4: your call goals are. So when might I want to be? 120 00:05:40,120 --> 00:05:42,880 Speaker 4: What am I investing for? Am I investing for a return? 121 00:05:42,960 --> 00:05:46,280 Speaker 4: Or am I investing for an income? And then after that, 122 00:05:46,360 --> 00:05:48,680 Speaker 4: well when might if I'm after a return, when might 123 00:05:48,680 --> 00:05:51,080 Speaker 4: I want that return? And how secure do I want 124 00:05:51,080 --> 00:05:52,400 Speaker 4: that to be? Do I want to be able to 125 00:05:52,400 --> 00:05:55,560 Speaker 4: access it whenever I like, etc? So those kind of things, 126 00:05:55,600 --> 00:05:58,560 Speaker 4: and also what else have I got in my investment portfolio? 127 00:05:58,960 --> 00:06:01,080 Speaker 4: So if you come out of and decide, well, actually, 128 00:06:01,560 --> 00:06:04,640 Speaker 4: I think that bitcoin is a really interesting asset class, 129 00:06:04,760 --> 00:06:06,839 Speaker 4: I do think it's worth me having a percentage of 130 00:06:06,880 --> 00:06:08,800 Speaker 4: my portfolio and it then it's to your point, You've 131 00:06:08,800 --> 00:06:10,240 Speaker 4: got a couple of choices. How do I get in? 132 00:06:10,440 --> 00:06:13,440 Speaker 4: So I can decide that I directly want to own bitcoin, 133 00:06:13,640 --> 00:06:15,560 Speaker 4: but that means I need to open an account and 134 00:06:15,600 --> 00:06:19,400 Speaker 4: have a wallet and figure out how am I going 135 00:06:19,400 --> 00:06:21,120 Speaker 4: to kind of buy and store and manage that on 136 00:06:21,120 --> 00:06:23,120 Speaker 4: ongoing basis. And for a lot of us, with our 137 00:06:23,200 --> 00:06:25,200 Speaker 4: long laundry list of things we've got to do at 138 00:06:25,200 --> 00:06:27,080 Speaker 4: home or with the kids of the family, you're like, ok, 139 00:06:27,240 --> 00:06:28,200 Speaker 4: that sounds quite hard. 140 00:06:28,320 --> 00:06:29,320 Speaker 2: Sounds like a lot of admins. 141 00:06:29,360 --> 00:06:32,200 Speaker 4: It does, right, and it's an unknowing, and we already 142 00:06:32,200 --> 00:06:34,480 Speaker 4: have in our mind that oh maybe that's a risky unknown. 143 00:06:34,880 --> 00:06:37,920 Speaker 4: So what a ETF gives you in terms of that 144 00:06:38,160 --> 00:06:41,160 Speaker 4: exchange traded fund to hold that is okay. Now I 145 00:06:41,240 --> 00:06:42,839 Speaker 4: know that I don't have to worry about all of 146 00:06:42,839 --> 00:06:45,800 Speaker 4: that admin of buying, holding, managing it. But I know 147 00:06:45,880 --> 00:06:48,040 Speaker 4: that I've got a product that's going to track that 148 00:06:48,279 --> 00:06:50,880 Speaker 4: bitcoin market, and that's actually what I'm interested in. I'm 149 00:06:50,880 --> 00:06:53,640 Speaker 4: interested in knowing whether it's going to go up, and 150 00:06:53,680 --> 00:06:55,880 Speaker 4: I want to be part of that if that's the case. 151 00:06:55,960 --> 00:06:59,200 Speaker 2: But if I'm part of one that's listed overseas, why 152 00:06:59,200 --> 00:07:01,080 Speaker 2: would I want to look at it locally listed one? 153 00:07:01,560 --> 00:07:02,320 Speaker 2: What's the difference. 154 00:07:02,720 --> 00:07:05,480 Speaker 4: So you've got choices there as well. Yes, you can 155 00:07:05,520 --> 00:07:09,760 Speaker 4: go offshore and directly buy I shares ETF yourself. With 156 00:07:09,920 --> 00:07:12,160 Speaker 4: that comes the fact that you need to be trading 157 00:07:12,320 --> 00:07:16,280 Speaker 4: externally offshore on that market what currency is in So 158 00:07:16,320 --> 00:07:18,120 Speaker 4: I'm going to have to pay a currency conversion rate 159 00:07:18,120 --> 00:07:21,120 Speaker 4: because I'm buying here locally in New Zealand dollars. And 160 00:07:21,240 --> 00:07:24,560 Speaker 4: also what's the cost of holding that on an offshore basis? 161 00:07:24,840 --> 00:07:27,960 Speaker 4: And so you normally pay custody fees to pay offshore 162 00:07:28,400 --> 00:07:31,720 Speaker 4: for an international custodian who's holding your yes it for 163 00:07:31,800 --> 00:07:34,520 Speaker 4: you if you buy it locally, then what we've done 164 00:07:34,600 --> 00:07:37,520 Speaker 4: is it's in a PIE structure. And so PIE is 165 00:07:37,600 --> 00:07:39,720 Speaker 4: that structure that we have that's special to New Zealand. 166 00:07:40,000 --> 00:07:43,080 Speaker 4: That means that all the taxable income in that fund 167 00:07:43,280 --> 00:07:45,760 Speaker 4: are taxed at a final tax rate of twenty eight percent, 168 00:07:46,280 --> 00:07:48,360 Speaker 4: and for some of us, that tax rate is lower 169 00:07:48,400 --> 00:07:51,920 Speaker 4: than our own personal tax rate final tax in New Zealand. 170 00:07:52,360 --> 00:07:54,680 Speaker 4: In New Zealand dollars on the exchange that I can 171 00:07:54,720 --> 00:07:57,200 Speaker 4: buy and sell easily in my trading account. So we 172 00:07:57,240 --> 00:08:00,120 Speaker 4: think those are all benefits. 173 00:07:59,080 --> 00:08:01,640 Speaker 2: Super simple. I guess the point with PIE, and I'm 174 00:08:01,640 --> 00:08:04,240 Speaker 2: not a tax advisor, but I would say that if 175 00:08:04,320 --> 00:08:06,200 Speaker 2: your tax rate happens to be lower, you'll have to 176 00:08:06,280 --> 00:08:09,000 Speaker 2: chase after that extra red yourself yeah, you're back in 177 00:08:09,040 --> 00:08:13,160 Speaker 2: the admin you mentioned. I suppose as well the idea 178 00:08:13,200 --> 00:08:16,360 Speaker 2: that you're getting exposured a bitcoin. You're not actually buying 179 00:08:17,040 --> 00:08:19,760 Speaker 2: the currency, though, are you? And I'm thinking straight away, 180 00:08:20,400 --> 00:08:22,960 Speaker 2: banks quite often want to know or lenders want to 181 00:08:22,960 --> 00:08:26,680 Speaker 2: know if you're invested in crypto for anti money laundering purposes. 182 00:08:27,120 --> 00:08:30,480 Speaker 2: So this is a way to actually own exposure to 183 00:08:30,480 --> 00:08:34,679 Speaker 2: cryptocurrency without actually owning it. It's correct, So there's another 184 00:08:34,720 --> 00:08:36,880 Speaker 2: little bonus perhaps for people to think about. 185 00:08:37,000 --> 00:08:38,880 Speaker 4: It's very true. And that's when I say, you're not 186 00:08:38,960 --> 00:08:41,120 Speaker 4: holding that direct asset, and that's the same as ol 187 00:08:41,160 --> 00:08:45,520 Speaker 4: gold etf so similar idea, another alternative asset. You're not 188 00:08:45,679 --> 00:08:48,520 Speaker 4: holding that gold, so no gold bars. It's going to 189 00:08:48,559 --> 00:08:51,600 Speaker 4: be handing around in there, but you absolutely are owning 190 00:08:52,160 --> 00:08:55,200 Speaker 4: They market the gold market as it were, and therefore 191 00:08:55,240 --> 00:08:57,520 Speaker 4: you're tracking and following the market, but you don't have 192 00:08:57,559 --> 00:09:00,760 Speaker 4: to worry about the actual underlying direct asset there. 193 00:09:00,960 --> 00:09:03,280 Speaker 2: Weirdly, sort of gold's the original bitcoin. 194 00:09:02,920 --> 00:09:03,679 Speaker 4: Isn't it It is? 195 00:09:04,000 --> 00:09:06,240 Speaker 2: So yeah, it's scarce. There's only so much of it 196 00:09:06,280 --> 00:09:08,079 Speaker 2: on the planet. You can't make anymore. It's something that 197 00:09:08,120 --> 00:09:10,640 Speaker 2: people sort of figure has some inherent value. 198 00:09:10,760 --> 00:09:12,960 Speaker 4: It's been long around for a very long time, and 199 00:09:13,040 --> 00:09:15,679 Speaker 4: so people talk about it as a safe haven, but 200 00:09:15,760 --> 00:09:18,240 Speaker 4: really it's a store of wealth, and it's the original 201 00:09:18,280 --> 00:09:20,720 Speaker 4: store of wealth. You're right. But in terms of being 202 00:09:20,720 --> 00:09:22,600 Speaker 4: that safe haven, and why we've added it in that 203 00:09:22,720 --> 00:09:26,800 Speaker 4: alternative space in terms of those assets, is that it's 204 00:09:26,880 --> 00:09:30,000 Speaker 4: uncorrelated to equity markets. And so by that I mean, 205 00:09:30,040 --> 00:09:32,160 Speaker 4: you know, we talk a lot about diversification. What does 206 00:09:32,200 --> 00:09:34,800 Speaker 4: that mean. So diversification can mean those buckets you're going 207 00:09:34,840 --> 00:09:37,400 Speaker 4: to put your assets in traditionally, right, the cash, the bonds, 208 00:09:37,400 --> 00:09:39,800 Speaker 4: the equities, et cetera, but now there are more of those. 209 00:09:39,920 --> 00:09:44,480 Speaker 4: Property is a well understood acid allocation diversifier, and so 210 00:09:44,640 --> 00:09:47,600 Speaker 4: these ones are the same. So for gold, we talk 211 00:09:47,640 --> 00:09:49,959 Speaker 4: about it as a safe haven because it's not directly 212 00:09:50,040 --> 00:09:53,560 Speaker 4: tied to or moving in tandem, and that's the correlation part. 213 00:09:53,600 --> 00:09:56,200 Speaker 4: It's not moving in tandem with the equity markets, so 214 00:09:56,240 --> 00:09:59,720 Speaker 4: it's a nice hedge against inflation. It's also a hedge 215 00:09:59,720 --> 00:10:02,120 Speaker 4: of wind the equity markets are going at any time, 216 00:10:02,360 --> 00:10:04,520 Speaker 4: and so people like it for that purpose. But it 217 00:10:04,520 --> 00:10:07,000 Speaker 4: doesn't pay you an income, right, there's no dividend on that. 218 00:10:07,000 --> 00:10:09,400 Speaker 2: It's a pure capital play. Basically, you're just bet hoping 219 00:10:09,440 --> 00:10:11,120 Speaker 2: it's it'll increase in value and that's it. 220 00:10:11,240 --> 00:10:13,440 Speaker 4: Yeah, And I think that store of wealth idea kind 221 00:10:13,440 --> 00:10:15,680 Speaker 4: of brings that across, right. It's not like it's increased 222 00:10:15,679 --> 00:10:18,480 Speaker 4: things sitting there paying you anything, but it is a 223 00:10:18,600 --> 00:10:22,880 Speaker 4: rock solid store of that wealth it has it continues 224 00:10:22,880 --> 00:10:25,440 Speaker 4: to have the same buying power over time that it 225 00:10:25,480 --> 00:10:26,160 Speaker 4: had originally. 226 00:10:26,200 --> 00:10:27,839 Speaker 2: You've got a store of wealth, You've got something you 227 00:10:27,880 --> 00:10:32,120 Speaker 2: can dabble with. The US tech stocks story is one 228 00:10:32,160 --> 00:10:34,840 Speaker 2: of those very very interesting kind of themes that people 229 00:10:34,880 --> 00:10:37,680 Speaker 2: are investing in. What does this one have? How do 230 00:10:37,760 --> 00:10:40,400 Speaker 2: you work out what to put it into? Or do 231 00:10:40,440 --> 00:10:43,160 Speaker 2: you you're leaving this largely to your partners at I Show, This. 232 00:10:43,120 --> 00:10:45,520 Speaker 4: One was very much driven by local demand. So when 233 00:10:45,559 --> 00:10:47,719 Speaker 4: I took this job about a year ago, came from 234 00:10:47,720 --> 00:10:49,559 Speaker 4: a wealth background. You talk to a lot of people 235 00:10:49,600 --> 00:10:51,680 Speaker 4: and advisors who are investing, and a lot of them said, 236 00:10:51,679 --> 00:10:54,400 Speaker 4: there's nothing locally in that US tech. We're all going 237 00:10:54,400 --> 00:10:56,960 Speaker 4: offshore for that. So we looked at that and talked 238 00:10:57,000 --> 00:10:59,080 Speaker 4: to I Shares and said, well, how else do we 239 00:10:59,160 --> 00:11:01,040 Speaker 4: bring that on shore and what does that look like? 240 00:11:01,440 --> 00:11:04,560 Speaker 4: So we've chosen one of their again ETFs to wrap 241 00:11:04,559 --> 00:11:08,360 Speaker 4: in our local pie wrapper here. We've also done this 242 00:11:08,360 --> 00:11:10,880 Speaker 4: a slightly different way because we're hedging this one hundred percent. 243 00:11:11,400 --> 00:11:13,559 Speaker 4: So what that means is that instead of worrying so 244 00:11:13,600 --> 00:11:16,160 Speaker 4: we've done the US tech sector. Instead of worrying that 245 00:11:16,320 --> 00:11:18,520 Speaker 4: how the US dollar is going to move in relation 246 00:11:18,640 --> 00:11:20,400 Speaker 4: to the Kiwi dollar, we've just taken that out of 247 00:11:20,400 --> 00:11:22,280 Speaker 4: the equation and said you're buying it here in your 248 00:11:22,320 --> 00:11:24,960 Speaker 4: local Keiwi dollars. You're buying it because you want to 249 00:11:24,960 --> 00:11:28,080 Speaker 4: be able to keep track of where that innovative tech 250 00:11:28,200 --> 00:11:31,400 Speaker 4: sector in the US market is going. And therefore we've 251 00:11:31,440 --> 00:11:34,720 Speaker 4: taken their currency exposure out by saying we're taking care 252 00:11:34,720 --> 00:11:36,880 Speaker 4: of that and running the local fund. We will one 253 00:11:36,960 --> 00:11:40,080 Speaker 4: hundred percent hedge that so that if it's going up 254 00:11:40,120 --> 00:11:42,840 Speaker 4: twenty percent, your value of yours is also up twenty percent. 255 00:11:42,920 --> 00:11:45,040 Speaker 4: Don't worry if then the New Zealand dollars dropped and 256 00:11:45,080 --> 00:11:46,959 Speaker 4: therefore you have to take some percentage points off it 257 00:11:46,960 --> 00:11:49,760 Speaker 4: because your key is worth less than the US. 258 00:11:49,440 --> 00:11:53,000 Speaker 2: Now, because that can really really change the bottom line result, 259 00:11:53,080 --> 00:11:54,920 Speaker 2: Candent that can that cutsy risk. 260 00:11:54,840 --> 00:11:57,880 Speaker 4: A new one is the US tech sector. So it 261 00:11:57,960 --> 00:12:00,520 Speaker 4: is based on the S and P. It's the top 262 00:12:00,640 --> 00:12:04,120 Speaker 4: innovative US tech companies that are in that space, and 263 00:12:04,200 --> 00:12:06,520 Speaker 4: therefore you want to be able to track that market 264 00:12:06,520 --> 00:12:08,400 Speaker 4: because that's what you're putting it in your portfolio for. 265 00:12:09,200 --> 00:12:11,599 Speaker 4: Not only do you want some diversification, but lots of 266 00:12:11,679 --> 00:12:14,120 Speaker 4: us like this idea of I call it core and explore, 267 00:12:14,160 --> 00:12:16,120 Speaker 4: or you can call it cora a niche. You know 268 00:12:16,160 --> 00:12:18,480 Speaker 4: what your solid asset allocation is, so how much you 269 00:12:18,520 --> 00:12:20,640 Speaker 4: want and kind of income type or what you want 270 00:12:20,640 --> 00:12:23,280 Speaker 4: in growth where you've got your safe stores of wealth 271 00:12:23,360 --> 00:12:26,720 Speaker 4: versus your speculative growth ones. And so some of us 272 00:12:26,760 --> 00:12:28,640 Speaker 4: when we look at our atfs might think that I'm 273 00:12:28,679 --> 00:12:32,120 Speaker 4: really interested in the global healthcare sector, or I believe 274 00:12:32,200 --> 00:12:35,480 Speaker 4: that Ossie resources are going to take off, or Japan 275 00:12:35,679 --> 00:12:38,680 Speaker 4: is poised for a massive growth in the economy. But 276 00:12:38,760 --> 00:12:40,960 Speaker 4: that's where you put your little explore around the edges. 277 00:12:41,080 --> 00:12:43,600 Speaker 4: I have a view on that area of the market. 278 00:12:43,800 --> 00:12:46,040 Speaker 4: Same with a US tech and it's been really popular 279 00:12:46,080 --> 00:12:48,079 Speaker 4: for a long time. It's got some great growth in it, 280 00:12:48,600 --> 00:12:50,760 Speaker 4: and I think the beauty of the US market and 281 00:12:50,840 --> 00:12:54,240 Speaker 4: the US tech part there is it's such a large market, 282 00:12:54,360 --> 00:12:58,080 Speaker 4: so it's really nicely self regulating. So if you look 283 00:12:58,120 --> 00:13:00,960 Speaker 4: back over time of what those tops ten to twenty 284 00:13:01,000 --> 00:13:04,840 Speaker 4: holdings will be, they churn themselves based on which are 285 00:13:04,920 --> 00:13:07,319 Speaker 4: the up and coming If Navidia is coming through or 286 00:13:07,360 --> 00:13:10,360 Speaker 4: if one drops out, We've got all of those top 287 00:13:10,400 --> 00:13:12,600 Speaker 4: holdings for you, and we will make sure that we're 288 00:13:12,640 --> 00:13:15,920 Speaker 4: holding those in proportion to their waiting in that market. 289 00:13:16,200 --> 00:13:19,280 Speaker 4: And therefore you truly are going to have the same 290 00:13:19,360 --> 00:13:21,720 Speaker 4: exposure as how all those tech companies in the US 291 00:13:21,720 --> 00:13:22,040 Speaker 4: are doing. 292 00:13:22,200 --> 00:13:24,920 Speaker 2: Cel those top holdings have been pretty top heavy for 293 00:13:25,000 --> 00:13:27,520 Speaker 2: quite a long time. The h something will change. 294 00:13:27,880 --> 00:13:30,760 Speaker 4: Yeah I'm talking back years, but yeah, you don't have 295 00:13:30,840 --> 00:13:32,960 Speaker 4: to worry about is something the next Kodak or have 296 00:13:33,000 --> 00:13:35,719 Speaker 4: I got the next Navidia, because they will work their 297 00:13:35,720 --> 00:13:38,000 Speaker 4: way through into that index and we will hold them. 298 00:13:38,559 --> 00:13:40,240 Speaker 2: So what would be the attraction with all of that 299 00:13:40,360 --> 00:13:42,680 Speaker 2: on offer and people looking at something that's based around 300 00:13:42,679 --> 00:13:43,920 Speaker 2: the NZX twenty. 301 00:13:44,400 --> 00:13:47,080 Speaker 4: Yes, so it's the top twenty companies in New Zealand 302 00:13:47,920 --> 00:13:49,880 Speaker 4: and So if you're interested in a view when you 303 00:13:49,920 --> 00:13:53,120 Speaker 4: talk about your allocation of what our home economy and 304 00:13:53,160 --> 00:13:55,400 Speaker 4: country is doing, then this is a really good way 305 00:13:55,480 --> 00:13:58,080 Speaker 4: to say, well, I've got the top twenty the largest 306 00:13:58,200 --> 00:14:02,720 Speaker 4: most liquid actively trade New Zealand stocks, So they're listed 307 00:14:02,800 --> 00:14:05,360 Speaker 4: keyw companies and I've got the top twenty of those, 308 00:14:05,559 --> 00:14:08,160 Speaker 4: and so therefore a slice of home where I am. 309 00:14:08,160 --> 00:14:09,800 Speaker 4: I've got to spend my dollars here most of the 310 00:14:09,840 --> 00:14:13,400 Speaker 4: time in terms of participating in the local economy. Then 311 00:14:13,400 --> 00:14:16,160 Speaker 4: I've also got a portion of my portfolio that is 312 00:14:16,240 --> 00:14:19,040 Speaker 4: invested in the local economy and those top twenty companies 313 00:14:19,080 --> 00:14:20,280 Speaker 4: and how they are doing. 314 00:14:21,280 --> 00:14:25,040 Speaker 2: So you put these out briefly on an early release, 315 00:14:25,080 --> 00:14:28,200 Speaker 2: and then they're going to be traded I think from 316 00:14:28,200 --> 00:14:32,040 Speaker 2: this week onwards. Yes, what sort of early indications did 317 00:14:32,080 --> 00:14:34,040 Speaker 2: you get about what people like and why they like them? 318 00:14:34,400 --> 00:14:36,160 Speaker 4: So we went out and we've done this time a 319 00:14:36,160 --> 00:14:38,880 Speaker 4: pre application process. So we've partnered with shares E's. We 320 00:14:38,960 --> 00:14:43,200 Speaker 4: also have MUFG as the registry of our listed ETFs 321 00:14:43,440 --> 00:14:45,320 Speaker 4: and gone out with them as well to ask people 322 00:14:45,320 --> 00:14:47,160 Speaker 4: if they've got interest in that. And then we've got 323 00:14:47,160 --> 00:14:51,840 Speaker 4: our own intermediary channels around advisors, etc. Our most popular 324 00:14:52,200 --> 00:14:55,360 Speaker 4: has been the US Tech, followed by the Gold, then 325 00:14:55,400 --> 00:14:57,280 Speaker 4: Bitcoin and then the ends at Next twenty at this 326 00:14:57,360 --> 00:15:00,320 Speaker 4: stage but actually a lot closer together than you might 327 00:15:00,360 --> 00:15:02,760 Speaker 4: think in terms of that early interest, so we'll be 328 00:15:02,840 --> 00:15:05,840 Speaker 4: really fascinating. That's the pre application process where people have 329 00:15:05,960 --> 00:15:07,760 Speaker 4: signed up and said, yet when it goes live, I'd 330 00:15:07,800 --> 00:15:10,880 Speaker 4: like some of that money with their mouth is yeah exactly. 331 00:15:11,120 --> 00:15:13,280 Speaker 4: And then when we do go live and have them out, 332 00:15:13,320 --> 00:15:16,080 Speaker 4: then they're obviously tradeable on the exchange. Are we interesting 333 00:15:16,120 --> 00:15:19,040 Speaker 4: to see if that early level of largely retail investor 334 00:15:19,080 --> 00:15:22,440 Speaker 4: interest stacks up as those ETFs are on the exchange 335 00:15:22,480 --> 00:15:23,920 Speaker 4: and start to be actively traded. 336 00:15:24,040 --> 00:15:27,360 Speaker 2: Are you using these ETFs as an investor to try 337 00:15:27,360 --> 00:15:30,920 Speaker 2: and get that exposure, to get comfort with understanding how 338 00:15:30,960 --> 00:15:33,280 Speaker 2: the market works and then moving on to something else, 339 00:15:33,760 --> 00:15:36,880 Speaker 2: or do you see them as something that an investor 340 00:15:36,920 --> 00:15:40,400 Speaker 2: could potentially hold as part of their portfolio right the 341 00:15:40,400 --> 00:15:41,240 Speaker 2: way through. 342 00:15:41,600 --> 00:15:44,000 Speaker 4: Both of those Actually, a lot of us might do 343 00:15:44,080 --> 00:15:46,800 Speaker 4: the exactly there as you talk about that's my baby steps. 344 00:15:46,960 --> 00:15:50,120 Speaker 4: So I actually believe in US tech or I believe 345 00:15:50,160 --> 00:15:52,480 Speaker 4: in robotics, but I don't really know which of those 346 00:15:52,520 --> 00:15:55,520 Speaker 4: companies in particular, but I do believe in that sector 347 00:15:55,800 --> 00:15:58,760 Speaker 4: or that disegregated view of the market. So perfect way 348 00:15:58,800 --> 00:16:01,760 Speaker 4: to enter that explore part of your portfolio to say 349 00:16:02,040 --> 00:16:04,160 Speaker 4: I think I'm interested in that sector, so let's buy that, 350 00:16:04,360 --> 00:16:08,240 Speaker 4: and I'm buying a basket of those stocks, and I'm 351 00:16:08,280 --> 00:16:11,160 Speaker 4: now tracking that market. If that continues to go on 352 00:16:11,200 --> 00:16:13,480 Speaker 4: and that's a particular area of interest for me, then 353 00:16:13,520 --> 00:16:15,400 Speaker 4: I might find that there's one or two in there 354 00:16:15,400 --> 00:16:17,680 Speaker 4: that I really like more than the others, and so 355 00:16:17,800 --> 00:16:20,680 Speaker 4: I can hold them directly. By buying that stock directly 356 00:16:20,960 --> 00:16:23,160 Speaker 4: doesn't necessarily mean I have to sell the ETF, because 357 00:16:23,200 --> 00:16:25,360 Speaker 4: I've still got a whole market following bet. But I 358 00:16:25,440 --> 00:16:28,640 Speaker 4: might want to say, actually, I like this one even more, 359 00:16:28,680 --> 00:16:30,560 Speaker 4: and I think into the long run, I want to 360 00:16:30,600 --> 00:16:33,080 Speaker 4: hold that too. But when we look off shore and 361 00:16:33,120 --> 00:16:35,520 Speaker 4: to a lot of investors, when we think about wealthier 362 00:16:35,520 --> 00:16:38,640 Speaker 4: individuals or people with a larger portfolios, a lot of 363 00:16:38,680 --> 00:16:42,440 Speaker 4: people have now moved away from individual stockholding and actually 364 00:16:42,480 --> 00:16:46,359 Speaker 4: hold a whole portfolio of ETF or FUN type structures. 365 00:16:46,520 --> 00:16:48,560 Speaker 4: And that's not to say that they're the multi asset 366 00:16:48,560 --> 00:16:51,680 Speaker 4: fun They've got all those individual building block components in there. 367 00:16:52,320 --> 00:16:54,800 Speaker 4: But it just is a way that suits people to 368 00:16:54,880 --> 00:16:57,560 Speaker 4: get a good diversified spread of everything that's going on, 369 00:16:57,720 --> 00:17:02,120 Speaker 4: but still have from particular mars at all thematic feelings 370 00:17:02,120 --> 00:17:03,240 Speaker 4: and beliefs within the book. 371 00:17:04,000 --> 00:17:07,200 Speaker 2: So these four that you're launching, they feel going back 372 00:17:07,200 --> 00:17:10,000 Speaker 2: to your core and explore idea. They feel very much 373 00:17:10,040 --> 00:17:13,080 Speaker 2: part of the Explore side of things. This is people 374 00:17:13,119 --> 00:17:15,320 Speaker 2: who are feeling a little bit more confident taking. Does 375 00:17:15,320 --> 00:17:17,760 Speaker 2: that mean that you feel that people are at the 376 00:17:17,800 --> 00:17:20,760 Speaker 2: stage where we've done all of the education around the 377 00:17:20,800 --> 00:17:21,600 Speaker 2: core that we need. 378 00:17:21,480 --> 00:17:25,639 Speaker 4: To definitely not and that's also part of our rebrand 379 00:17:25,760 --> 00:17:29,200 Speaker 4: and that wise investmart This comes with a renewed commitment 380 00:17:29,320 --> 00:17:32,960 Speaker 4: to do investor education. Really what it is it's about, 381 00:17:33,200 --> 00:17:36,119 Speaker 4: do we as New Zealanders understand it enough about maths 382 00:17:36,119 --> 00:17:39,040 Speaker 4: and money? And those of your two we go back. 383 00:17:38,840 --> 00:17:40,760 Speaker 2: To the core, Well, the stats out of the schools 384 00:17:40,800 --> 00:17:43,520 Speaker 2: would suggest horribly not yes, And I think that. 385 00:17:43,520 --> 00:17:46,119 Speaker 4: We talk a lot about do we understand enough about maths? 386 00:17:46,640 --> 00:17:48,720 Speaker 4: Probably not, as you said when you look at the scores, 387 00:17:48,880 --> 00:17:51,360 Speaker 4: but also money kind of goes with maths, and if 388 00:17:51,359 --> 00:17:53,439 Speaker 4: we put it together at the very basic form at 389 00:17:53,440 --> 00:17:55,760 Speaker 4: the beginning, then those are some things that we can 390 00:17:55,800 --> 00:17:58,560 Speaker 4: teach all of our children and everyone who's getting educated 391 00:17:58,600 --> 00:18:03,240 Speaker 4: in New Zealand about simple things like compounding interest. If 392 00:18:03,240 --> 00:18:06,119 Speaker 4: I put my dollar in now and that grows to 393 00:18:06,200 --> 00:18:08,360 Speaker 4: a dollar twenty at the end of the year. Then 394 00:18:08,440 --> 00:18:11,399 Speaker 4: next year, I've invested a dollar twenty and that grows 395 00:18:11,440 --> 00:18:14,040 Speaker 4: proportionally more. You don't even have to do anything else 396 00:18:14,480 --> 00:18:19,640 Speaker 4: apart from it continues to compound and pay the fees. Absolutely, yeah, absolutely, 397 00:18:19,800 --> 00:18:22,760 Speaker 4: But that's a different view from I've invested my money 398 00:18:22,760 --> 00:18:24,399 Speaker 4: and now I've made a profit, and I'm taking that 399 00:18:24,440 --> 00:18:26,320 Speaker 4: out to spend on something else. So next year, I've 400 00:18:26,320 --> 00:18:29,600 Speaker 4: still got the base dollar invested. Or I've invested my 401 00:18:29,640 --> 00:18:31,800 Speaker 4: money and it pays dividends, but I'm going to take 402 00:18:31,840 --> 00:18:35,679 Speaker 4: those dividends rather than reinvesting them. So everyone needs to 403 00:18:35,680 --> 00:18:37,560 Speaker 4: make their own choice, depending on where they are in 404 00:18:37,600 --> 00:18:39,639 Speaker 4: their life's journey and whether they need the income or 405 00:18:39,640 --> 00:18:42,159 Speaker 4: the growth. But even the fact that not all of 406 00:18:42,160 --> 00:18:46,480 Speaker 4: our kids understand the power of that compounding interest over time. 407 00:18:46,320 --> 00:18:49,760 Speaker 2: Perhaps it's because people need that practical experience of actually 408 00:18:50,280 --> 00:18:52,720 Speaker 2: putting some money on the line and seeing what it does. 409 00:18:53,240 --> 00:18:55,840 Speaker 2: Because reading about these things and so on in the 410 00:18:55,840 --> 00:18:59,199 Speaker 2: abstract is pretty dry. It's not until you've actually got 411 00:18:59,280 --> 00:19:01,479 Speaker 2: some results to turning up or not turning up, and 412 00:19:01,520 --> 00:19:03,440 Speaker 2: you're trying to ask questions about what happened there. 413 00:19:03,600 --> 00:19:05,840 Speaker 4: Yeah, nothing like dollar in your pocket instead of a 414 00:19:05,840 --> 00:19:08,600 Speaker 4: spreadshet in front of you. Completely agree, and I think 415 00:19:08,640 --> 00:19:11,840 Speaker 4: that's been the power of online trading platforms and the 416 00:19:11,880 --> 00:19:13,760 Speaker 4: power of what shares use has done in terms of 417 00:19:13,800 --> 00:19:16,480 Speaker 4: retail space. But I also think that that's the power 418 00:19:16,480 --> 00:19:18,640 Speaker 4: of what Kei we Saver has brought to And we're 419 00:19:18,680 --> 00:19:21,800 Speaker 4: not there nearly yet right in terms of there being 420 00:19:22,000 --> 00:19:26,240 Speaker 4: enough people making enough contributions for a good retirement and 421 00:19:26,320 --> 00:19:29,199 Speaker 4: a dignified retirement, but actually on the way there. What 422 00:19:29,240 --> 00:19:31,080 Speaker 4: it's meant is a whole lot more people are now 423 00:19:31,200 --> 00:19:34,800 Speaker 4: interested in investing, and so instead of our somewhat traditional 424 00:19:35,000 --> 00:19:37,280 Speaker 4: right yep, I buy a property and then that'll be 425 00:19:37,320 --> 00:19:40,440 Speaker 4: my ticket to retirement. People are understanding and need to diversify, 426 00:19:40,960 --> 00:19:42,920 Speaker 4: so I don't want all my eggs in one basket. 427 00:19:43,240 --> 00:19:45,680 Speaker 4: And that's encouraged a whole lot more people to, as 428 00:19:45,720 --> 00:19:48,840 Speaker 4: you say, get involved and actually feel it themselves and 429 00:19:48,880 --> 00:19:49,280 Speaker 4: see it. 430 00:19:49,640 --> 00:19:52,440 Speaker 2: I want to bring your partners in this ice is 431 00:19:52,480 --> 00:19:54,560 Speaker 2: into the equation a little bit. You've talked about them before. 432 00:19:54,600 --> 00:19:57,359 Speaker 2: Who who are I shares and why are you working 433 00:19:57,400 --> 00:19:57,960 Speaker 2: with them on. 434 00:19:57,840 --> 00:20:00,480 Speaker 4: This I Shares are owned by black Rock they're the 435 00:20:00,520 --> 00:20:03,000 Speaker 4: one of the biggest fund managers in the world. I 436 00:20:03,160 --> 00:20:05,600 Speaker 4: Shares is the part that runs a whole lot of 437 00:20:05,600 --> 00:20:08,679 Speaker 4: their ETFs, and so why we've partnered with them is 438 00:20:08,720 --> 00:20:12,080 Speaker 4: because they have a great global footprint in terms of 439 00:20:12,160 --> 00:20:15,159 Speaker 4: the product set and the depth of their knowledge that 440 00:20:15,200 --> 00:20:17,720 Speaker 4: they have out there. So we started talking to them 441 00:20:17,760 --> 00:20:19,959 Speaker 4: about how do we do that in a local market. 442 00:20:20,119 --> 00:20:22,320 Speaker 4: A lot of people have done this in other markets 443 00:20:22,400 --> 00:20:24,520 Speaker 4: before us, and I always think you should look off 444 00:20:24,560 --> 00:20:27,040 Speaker 4: shore to see what you can learn from that. But 445 00:20:27,119 --> 00:20:30,200 Speaker 4: the common goal that we both had, which was around 446 00:20:30,480 --> 00:20:33,200 Speaker 4: trying to make investment more accessible. 447 00:20:33,440 --> 00:20:35,600 Speaker 2: What's in it for them? Why are they not just 448 00:20:35,680 --> 00:20:38,400 Speaker 2: directly taking their exposure to the market here, Why come 449 00:20:38,440 --> 00:20:39,880 Speaker 2: through smart? 450 00:20:40,160 --> 00:20:42,359 Speaker 4: I think it's the balance of what we both bring 451 00:20:42,440 --> 00:20:45,600 Speaker 4: to that relationship. So I think that this is a 452 00:20:45,600 --> 00:20:48,920 Speaker 4: really good blend from our local smarts, if you will, 453 00:20:49,400 --> 00:20:52,679 Speaker 4: about our customer and market knowledge in our local New 454 00:20:52,760 --> 00:20:56,520 Speaker 4: Zealand market and their global breadth and depth. So why 455 00:20:56,520 --> 00:20:58,680 Speaker 4: would they not come here and do it themselves. Well, 456 00:20:58,720 --> 00:21:01,119 Speaker 4: technically they could, and this is a market that they 457 00:21:01,240 --> 00:21:04,240 Speaker 4: need to open up. We're already established in that place. 458 00:21:04,320 --> 00:21:07,520 Speaker 4: We are the local ETF manufacturer and we already have 459 00:21:07,560 --> 00:21:10,199 Speaker 4: that customer presence in that connection and through the market, 460 00:21:10,600 --> 00:21:14,040 Speaker 4: so we keep that local presence, that expertise, the feeling 461 00:21:14,040 --> 00:21:16,800 Speaker 4: that we absolutely are connected to our local market, but 462 00:21:16,920 --> 00:21:19,439 Speaker 4: we help leverage our expertise and amplify it in some 463 00:21:19,560 --> 00:21:22,240 Speaker 4: areas by connecting into them. The other great thing they 464 00:21:22,240 --> 00:21:25,160 Speaker 4: bring on a global platform basis is that they've done 465 00:21:25,160 --> 00:21:27,720 Speaker 4: this in lots of other markets around the world. They 466 00:21:27,760 --> 00:21:30,560 Speaker 4: have a huge library I like to call it of 467 00:21:31,000 --> 00:21:34,480 Speaker 4: ETF investment knowledge and education, and we're really hoping that 468 00:21:34,520 --> 00:21:36,720 Speaker 4: we are going to really do a good job of 469 00:21:36,840 --> 00:21:37,479 Speaker 4: leveraging that. 470 00:21:37,800 --> 00:21:40,280 Speaker 2: So they're effectively doing all of the tracking for you. 471 00:21:41,359 --> 00:21:43,520 Speaker 4: Yes, So you know when we talked about the investors 472 00:21:43,560 --> 00:21:45,520 Speaker 4: and said do you start here and then do you 473 00:21:45,560 --> 00:21:48,400 Speaker 4: grow as you grow your portfolio and hold direct assets 474 00:21:48,400 --> 00:21:51,840 Speaker 4: instead of a fund product kind of the same idea 475 00:21:51,920 --> 00:21:54,280 Speaker 4: as a product manufacturer. So if you think about that 476 00:21:54,320 --> 00:21:57,280 Speaker 4: product cycle, we've gone live with a product where we 477 00:21:57,480 --> 00:22:00,000 Speaker 4: have wrapped their I shares, so we put our line 478 00:22:00,000 --> 00:22:02,320 Speaker 4: local PI tax wrapper around it. We make sure that 479 00:22:02,320 --> 00:22:05,040 Speaker 4: we're handling that for the US tech the currency hedging 480 00:22:05,080 --> 00:22:07,560 Speaker 4: here and what that looks like because it's listed here 481 00:22:07,560 --> 00:22:10,119 Speaker 4: in New Zealand dollars. But we've chosen to just wrap 482 00:22:10,160 --> 00:22:12,520 Speaker 4: their product. So that's the single holding that our fund 483 00:22:12,520 --> 00:22:15,200 Speaker 4: will have over time. As that grows, which we really 484 00:22:15,200 --> 00:22:17,600 Speaker 4: hope it will do, then it gets to a point 485 00:22:17,640 --> 00:22:20,359 Speaker 4: in size where we have other options to manage that fund, 486 00:22:20,640 --> 00:22:23,760 Speaker 4: we might decide that actually it makes most efficient sense 487 00:22:23,800 --> 00:22:26,040 Speaker 4: in terms of running that product and getting the best 488 00:22:26,160 --> 00:22:28,800 Speaker 4: end result for investors in terms of the fee, that 489 00:22:28,840 --> 00:22:32,600 Speaker 4: we will unwrap that I share and instead we will 490 00:22:32,640 --> 00:22:36,399 Speaker 4: hold all of those assets ourselves directly. Our other choice 491 00:22:36,400 --> 00:22:38,240 Speaker 4: when we get to that is that we can decide, yep, 492 00:22:38,280 --> 00:22:41,720 Speaker 4: we want to run that ourselves locally, or sometimes what 493 00:22:41,840 --> 00:22:44,720 Speaker 4: happens within any jurisdiction or New Zealand is you get 494 00:22:44,720 --> 00:22:47,240 Speaker 4: to a certain size where you think, actually the size 495 00:22:47,240 --> 00:22:48,919 Speaker 4: and scale of that and I want to partner with 496 00:22:48,960 --> 00:22:50,800 Speaker 4: someone else who's going to run it for me under 497 00:22:50,840 --> 00:22:52,280 Speaker 4: an investment management agreement. 498 00:22:52,520 --> 00:22:55,320 Speaker 2: When you came into I think partly to consolidate here, 499 00:22:55,359 --> 00:22:58,520 Speaker 2: I think you said, and to make some smart choices 500 00:22:59,200 --> 00:23:02,240 Speaker 2: forty four E. Now is that a smart portfolio to 501 00:23:02,240 --> 00:23:04,360 Speaker 2: be holding? Do you want to look at pruning back 502 00:23:04,440 --> 00:23:06,639 Speaker 2: some of those and how might that look if that happen. 503 00:23:06,760 --> 00:23:08,640 Speaker 4: How many is too many? How many is not enough? 504 00:23:09,080 --> 00:23:11,560 Speaker 4: Very good question. So we are looking at what the 505 00:23:11,600 --> 00:23:14,359 Speaker 4: economics of those look like, but also what our investors 506 00:23:14,400 --> 00:23:16,520 Speaker 4: want to have in choice. If we go back to 507 00:23:16,560 --> 00:23:18,399 Speaker 4: the core and explore, I think you always want to 508 00:23:18,400 --> 00:23:20,800 Speaker 4: have a corset, and that's where we're heading to as well. 509 00:23:20,960 --> 00:23:23,600 Speaker 4: And at the moment, those are probably ten to eleven 510 00:23:23,720 --> 00:23:26,960 Speaker 4: funds that we think would be the core part of 511 00:23:27,040 --> 00:23:29,879 Speaker 4: any investor's portfolio, and in fact would be the same 512 00:23:30,119 --> 00:23:33,359 Speaker 4: universe of building blocks that we would choose when we 513 00:23:33,400 --> 00:23:36,399 Speaker 4: put together our own ready made investment strategies in our 514 00:23:36,440 --> 00:23:39,120 Speaker 4: diversified funds for Key we Savior or superannuation, etc. 515 00:23:39,520 --> 00:23:41,400 Speaker 2: I'm going to guess that they look an awful lot 516 00:23:41,520 --> 00:23:45,879 Speaker 2: like the top ten trades that Cheese's customers make, because 517 00:23:45,920 --> 00:23:48,080 Speaker 2: we seem to exactly Yeah. 518 00:23:48,119 --> 00:23:50,080 Speaker 4: So I think that although we might all think that 519 00:23:50,080 --> 00:23:52,760 Speaker 4: we have a really different outset allocation or strategic as 520 00:23:52,800 --> 00:23:56,320 Speaker 4: the allocation strategy, basically it all comes back to the 521 00:23:56,359 --> 00:23:59,280 Speaker 4: same core. So those are really important to have. Then 522 00:23:59,320 --> 00:24:03,400 Speaker 4: what you put around and your explore around the outside, well, yeah, 523 00:24:03,520 --> 00:24:06,240 Speaker 4: that will change over time because there when we think 524 00:24:06,240 --> 00:24:08,679 Speaker 4: about our job as a product manufacturer. We need to 525 00:24:08,760 --> 00:24:12,479 Speaker 4: be providing product and choice to people, meeting the demand 526 00:24:12,520 --> 00:24:14,800 Speaker 4: that people have. And that's not to say that those 527 00:24:14,840 --> 00:24:17,520 Speaker 4: themes will run forever. So we need to look at 528 00:24:17,600 --> 00:24:19,840 Speaker 4: how many people are invested in that fund, how much 529 00:24:19,920 --> 00:24:22,560 Speaker 4: is it growing over time, is it still a really 530 00:24:22,720 --> 00:24:26,000 Speaker 4: useful part of people's portfolios or not. So we will 531 00:24:26,000 --> 00:24:28,760 Speaker 4: constantly go into that, and we're now talking about an 532 00:24:28,800 --> 00:24:31,480 Speaker 4: annual product review cycle so that we can look at 533 00:24:31,480 --> 00:24:33,560 Speaker 4: what new products need to come to market, where might 534 00:24:33,600 --> 00:24:36,320 Speaker 4: there be consolidation in that, and which ones are just 535 00:24:36,480 --> 00:24:37,840 Speaker 4: no longer used by people. 536 00:24:37,920 --> 00:24:39,440 Speaker 2: So you might have a bit of a watch list there, 537 00:24:39,480 --> 00:24:41,320 Speaker 2: but nothing's about to be cut us'. 538 00:24:41,119 --> 00:24:43,680 Speaker 4: Absolutely not, because I think that when we think about 539 00:24:43,920 --> 00:24:48,359 Speaker 4: pushing that new brand and talking about and really sharing 540 00:24:48,359 --> 00:24:51,280 Speaker 4: that education and information, we do think that there's still 541 00:24:51,320 --> 00:24:53,600 Speaker 4: some things in our forty four that we probably haven't 542 00:24:53,920 --> 00:24:57,040 Speaker 4: well publicized or talked to people about, or talked about 543 00:24:57,080 --> 00:24:59,600 Speaker 4: what the value proposition of those is. So we absolutely 544 00:24:59,600 --> 00:25:02,240 Speaker 4: want to give ourselves a time and a roadway to 545 00:25:02,359 --> 00:25:04,919 Speaker 4: do that and then to see what market feedback we 546 00:25:05,000 --> 00:25:07,879 Speaker 4: get to help design what their end product set looks like. 547 00:25:08,320 --> 00:25:10,359 Speaker 2: And it almost feels a bit much to be asking 548 00:25:10,359 --> 00:25:13,119 Speaker 2: you when you're just launching these four, But I guess 549 00:25:13,119 --> 00:25:15,879 Speaker 2: you see other stories and themes around, like infrastructure and 550 00:25:15,920 --> 00:25:19,159 Speaker 2: the ability to invest in other kinds of sectors or 551 00:25:19,200 --> 00:25:23,000 Speaker 2: industries that perhaps people can't certainly at the retailing get 552 00:25:23,040 --> 00:25:25,680 Speaker 2: easy access to. Is there a place for ETFs there 553 00:25:25,720 --> 00:25:27,879 Speaker 2: and is that something that you're considering. 554 00:25:27,400 --> 00:25:29,520 Speaker 4: E bit Yes, both of those. I think there is 555 00:25:29,520 --> 00:25:31,800 Speaker 4: a place for ETFs, and especially again when you look 556 00:25:31,800 --> 00:25:34,440 Speaker 4: offshore and you look at alternative ETFs or some of 557 00:25:34,480 --> 00:25:37,040 Speaker 4: the work that Singapore has done, say to encourage and 558 00:25:37,080 --> 00:25:40,360 Speaker 4: how do you again make that more accessible or democratize 559 00:25:40,400 --> 00:25:42,520 Speaker 4: it as people talk about, how do you bring some 560 00:25:42,640 --> 00:25:45,720 Speaker 4: of those alternative asset structures to the wider retail market 561 00:25:45,760 --> 00:25:48,360 Speaker 4: and do it in an easily digestible way. So we're 562 00:25:48,400 --> 00:25:49,760 Speaker 4: looking at some of those as well. 563 00:25:50,040 --> 00:25:51,080 Speaker 2: That's year two, is it. 564 00:25:51,400 --> 00:25:54,200 Speaker 4: Yeah? If it was a month to two, my team 565 00:25:54,200 --> 00:25:56,400 Speaker 4: would kill me. So yeah, definitely year two. 566 00:25:56,640 --> 00:25:59,000 Speaker 2: Anna Scott, thank you so much for your time today. 567 00:25:59,720 --> 00:26:02,159 Speaker 2: Thank you for listening and for watching. If you're on YouTube, 568 00:26:02,200 --> 00:26:04,879 Speaker 2: you're catching us there. If you're listening, you're probably on Apple, 569 00:26:04,920 --> 00:26:05,800 Speaker 2: Spotify or work. 570 00:26:06,080 --> 00:26:09,119 Speaker 3: Now you can combine the experience of multiple fund managers 571 00:26:09,160 --> 00:26:12,720 Speaker 3: and get even more diversification in your Chezy's Kiwisaber scheme. 572 00:26:12,960 --> 00:26:16,199 Speaker 3: Select up to six base funds ranging from conservative to 573 00:26:16,320 --> 00:26:18,680 Speaker 3: high growth to make at least fifty percent of your 574 00:26:18,680 --> 00:26:21,439 Speaker 3: investment plan, and add your own picks on top. If 575 00:26:21,480 --> 00:26:25,360 Speaker 3: you wish it's real choice multiplied. Head to Chezy's dot 576 00:26:25,440 --> 00:26:29,000 Speaker 3: nz slash kisaber to get more info. Chezy's Investment Management 577 00:26:29,080 --> 00:26:31,880 Speaker 3: Limited is the issuer of the Chaz's Kiwisaber Scheme. 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