WEBVTT - Smart brings bitcoin, gold, and more to the NZX 0:00:00.600 --> 0:00:04.800 Whatever your aspirations, we can help you get there, not 0:00:04.880 --> 0:00:08.240 just with investing, but now with a high interest flexible 0:00:08.280 --> 0:00:10.879 savings account and a key we save a scheme too, 0:00:11.560 --> 0:00:14.440 share ease for the money you've got big plans for. 0:00:16.480 --> 0:00:20.640 Whatever your aspirations, we can help you get there, not 0:00:20.760 --> 0:00:24.120 just with investing, but now with a high interest, flexible 0:00:24.120 --> 0:00:26.759 savings account and a key we save a scheme too, 0:00:27.400 --> 0:00:30.280 share ease for the money you've got big plans for. 0:00:35.200 --> 0:00:38.400 Kirakoto Garth Bray here with Shared Lunch. Today we are 0:00:38.440 --> 0:00:41.640 with Anna Scott, the CEO of Smart, talking about the 0:00:41.720 --> 0:00:45.440 for new exchange traded funds ETFs that they are bringing 0:00:45.440 --> 0:00:48.360 to market. But first, some important information that you really 0:00:48.400 --> 0:00:49.479 need to consider. 0:00:49.200 --> 0:00:51.760 Investing involves the risk you might lose the money you 0:00:51.800 --> 0:00:55.080 start with. We recommend talking to a licensed financial advisor. 0:00:55.840 --> 0:00:59.640 We also recommend reading product disclosure documents before deciding to invest. 0:01:00.000 --> 0:01:02.320 Everything you're about to see and here is current at 0:01:02.320 --> 0:01:02.760 the time of. 0:01:02.680 --> 0:01:04.960 Recording and a great to be here. Thank you for 0:01:05.000 --> 0:01:08.039 inviting us, Thanks for coming. Let's dive into those four 0:01:08.120 --> 0:01:12.160 new exchange traded funds that you are getting ready to launch. 0:01:12.440 --> 0:01:14.720 I think the day that this podcast goes out right. 0:01:14.840 --> 0:01:15.600 Yep, there's day. 0:01:16.120 --> 0:01:18.200 So if I look at the sorts of things you're 0:01:18.200 --> 0:01:20.959 talking about here, we're talking about a bitcoin ETF, we're 0:01:21.000 --> 0:01:24.839 talking about gold yep, and exposure to US tech stocks 0:01:24.840 --> 0:01:27.840 as well as our own large caps and the nz X. Yeah, 0:01:27.880 --> 0:01:30.440 so what made those four so attractive? 0:01:30.640 --> 0:01:32.399 There's a lot of interest in bitcoin, so shall we 0:01:32.400 --> 0:01:32.800 start there? 0:01:33.040 --> 0:01:33.840 Yeah, for sure. 0:01:34.080 --> 0:01:36.120 Really the thing about bitcoin is it has got a 0:01:36.160 --> 0:01:38.760 lot of interest and people are on either side of 0:01:38.800 --> 0:01:41.800 that whether you really believe in cryptocurrency and digital currency 0:01:41.800 --> 0:01:44.080 going forward or you don't, and either way that's okay. 0:01:44.480 --> 0:01:46.600 But we really believe that our job and part of 0:01:46.600 --> 0:01:49.639 the branding around smart is to bring choice to people. 0:01:49.960 --> 0:01:53.320 So part of that is bitcoin, and for us, what 0:01:53.360 --> 0:01:56.080 we've done is we've brought that home to the local exchange. 0:01:56.120 --> 0:01:58.120 That means that when you want to get into if 0:01:58.120 --> 0:02:01.040 you believe in cryptocurrency as a a good place to 0:02:01.120 --> 0:02:03.440 have some of your investment money, not all of it, 0:02:03.480 --> 0:02:06.000 but some of it, then you don't have to worry 0:02:06.000 --> 0:02:08.600 about getting into the world of how do you buy 0:02:08.919 --> 0:02:11.840 a digital currency, how do you store it, what is 0:02:11.880 --> 0:02:14.080 your security key or your what it looks like, and 0:02:14.080 --> 0:02:16.800 how you're going to manage that ongoing basis. Instead, what 0:02:16.880 --> 0:02:18.840 you can buy is an ETF that is going to 0:02:18.919 --> 0:02:23.239 track the price of bitcoin and you're going to participate 0:02:23.320 --> 0:02:24.520 in its ups and downs. 0:02:24.720 --> 0:02:27.520 It has been seen. I guess it feels really like 0:02:27.560 --> 0:02:30.040 about five minutes ago, it was not really even seen 0:02:30.080 --> 0:02:32.959 as a credible kind of an asset. Now, I mean 0:02:33.080 --> 0:02:35.359 you're talking about a product, but effectively someone could put 0:02:35.360 --> 0:02:38.880 their nana into effectively, right, Yes, so it's really really 0:02:38.919 --> 0:02:42.120 made the successible. It is a very volatile kind of 0:02:42.160 --> 0:02:46.040 investment though, bitquen. That'll be reflected obviously as the ETF 0:02:46.280 --> 0:02:47.240 matches that value. 0:02:47.360 --> 0:02:49.680 Yes, And so if you've been investing in any of 0:02:49.720 --> 0:02:51.840 our ETFs for a while, you'll know that each has 0:02:51.840 --> 0:02:54.560 a product disclosure statement we call it a PDS, and 0:02:54.600 --> 0:02:56.320 in there we need to do a risk rating. So 0:02:56.360 --> 0:02:58.799 when you look at that risk rating, that's a reflection 0:02:59.000 --> 0:03:01.320 of the volatilities. So that's the ups and downs that 0:03:01.360 --> 0:03:03.920 you're going to go over the lifetime of holding that product. 0:03:04.160 --> 0:03:07.119 But it also generally reflects the return that you think 0:03:07.120 --> 0:03:10.000 you're going to get to pay that volatility off. So 0:03:10.080 --> 0:03:13.000 putting your nana into it or yourself really comes back 0:03:13.000 --> 0:03:15.200 to what are you wanting to hope to achieve with that? 0:03:15.480 --> 0:03:17.440 So what are your goals? How long do you want 0:03:17.440 --> 0:03:19.720 to hold it for? Because if you're going through the curves, 0:03:19.760 --> 0:03:21.280 then you're getting out at the top of the bottom 0:03:21.360 --> 0:03:23.360 or the middle, and when might you want your money 0:03:23.360 --> 0:03:25.680 out of that? But for a lot of people, now 0:03:26.080 --> 0:03:29.959 that digital currency has become a valid currency around the world, 0:03:30.160 --> 0:03:33.120 and we do believe that bringing that choice home to 0:03:33.200 --> 0:03:36.320 our local investors means you've got a way to access 0:03:36.360 --> 0:03:39.160 that and New Zealand dollars on our own inzets. 0:03:39.440 --> 0:03:41.440 A lot of the commentrary I read around this is ah, 0:03:41.560 --> 0:03:44.680 some people that are nervous about bitcoin. Other people say, 0:03:44.760 --> 0:03:47.800 look one to three percent and your portfolio is an 0:03:47.800 --> 0:03:50.800 acceptable risk. It's a very personal choice, isn't it. How 0:03:50.880 --> 0:03:51.720 much you get into this. 0:03:51.840 --> 0:03:53.840 It is a personal choice. And I think that if 0:03:53.840 --> 0:03:55.600 you look back to the starting of all of us 0:03:55.680 --> 0:03:58.360 investing rope cash, and then you add on with OK 0:03:58.560 --> 0:04:01.400 bonds and then equity, and now we're getting into more 0:04:01.440 --> 0:04:04.960 and more different thematic or disaggregated views of that were 0:04:05.000 --> 0:04:08.280 than the equity space and the alternative assets. So yes, 0:04:08.360 --> 0:04:11.560 bitcoin is an alternative asset. A lot of people are 0:04:11.640 --> 0:04:14.680 using it for their own personal transactions and a method 0:04:14.680 --> 0:04:17.640 of payment around the world. I Shares, who we've partnered 0:04:17.680 --> 0:04:21.200 with on this product, have that bitcoin that they went 0:04:21.360 --> 0:04:25.000 live with, and it's the largest market cap bitcoin ETF 0:04:25.160 --> 0:04:28.160 in the world at the moment, and so worldwide there 0:04:28.200 --> 0:04:29.760 is a lot of interest and belief in it. 0:04:30.160 --> 0:04:33.800 So what sort of insights lead you to think this 0:04:34.279 --> 0:04:35.479 is what we need to do right now? 0:04:35.640 --> 0:04:37.719 So we did two things. We looked at the local 0:04:37.760 --> 0:04:40.440 market and we got insights into the data of where 0:04:40.440 --> 0:04:42.800 people are investing. So a lot of New Zealanders are 0:04:42.800 --> 0:04:46.719 already investing in bitcoin anyway, either direct or going offshore 0:04:46.760 --> 0:04:49.200 to buy that kind of product. And we also talked 0:04:49.240 --> 0:04:52.120 to global partners and looked at global data and research, 0:04:52.400 --> 0:04:56.120 including talking to I Shares and it being their fastest 0:04:56.120 --> 0:05:00.560 growing ETF and being part of that marketing suite that 0:05:00.640 --> 0:05:04.320 they see real insight and interest into mean that we 0:05:04.360 --> 0:05:06.480 thought that there was a real case for adding it 0:05:06.520 --> 0:05:09.360 to the choice of funds that are available here at home. 0:05:09.560 --> 0:05:11.160 So if you break it down, then you've got people 0:05:11.160 --> 0:05:15.280 that are already happy to invest directly in cryptocurrencies or 0:05:15.320 --> 0:05:17.880 in bitcoin through an exchange, a coin exchange going there 0:05:17.920 --> 0:05:21.000 and just literally buying a commodity. And you've got others 0:05:21.000 --> 0:05:26.880 that are already using existing offshore listed ETFs, and now 0:05:26.880 --> 0:05:30.279 you're offering this. Can you explain why I'd want to 0:05:30.279 --> 0:05:31.919 be in one or other of those and why I 0:05:32.040 --> 0:05:34.720 might choose this rather than one of those other two. 0:05:34.880 --> 0:05:37.279 I think that comes into therefore coming back to what 0:05:37.320 --> 0:05:39.880 your call goals are. So when might I want to be? 0:05:40.120 --> 0:05:42.880 What am I investing for? Am I investing for a return? 0:05:42.960 --> 0:05:46.280 Or am I investing for an income? And then after that, 0:05:46.360 --> 0:05:48.680 well when might if I'm after a return, when might 0:05:48.680 --> 0:05:51.080 I want that return? And how secure do I want 0:05:51.080 --> 0:05:52.400 that to be? Do I want to be able to 0:05:52.400 --> 0:05:55.560 access it whenever I like, etc? So those kind of things, 0:05:55.600 --> 0:05:58.560 and also what else have I got in my investment portfolio? 0:05:58.960 --> 0:06:01.080 So if you come out of and decide, well, actually, 0:06:01.560 --> 0:06:04.640 I think that bitcoin is a really interesting asset class, 0:06:04.760 --> 0:06:06.839 I do think it's worth me having a percentage of 0:06:06.880 --> 0:06:08.800 my portfolio and it then it's to your point, You've 0:06:08.800 --> 0:06:10.240 got a couple of choices. How do I get in? 0:06:10.440 --> 0:06:13.440 So I can decide that I directly want to own bitcoin, 0:06:13.640 --> 0:06:15.560 but that means I need to open an account and 0:06:15.600 --> 0:06:19.400 have a wallet and figure out how am I going 0:06:19.400 --> 0:06:21.120 to kind of buy and store and manage that on 0:06:21.120 --> 0:06:23.120 ongoing basis. And for a lot of us, with our 0:06:23.200 --> 0:06:25.200 long laundry list of things we've got to do at 0:06:25.200 --> 0:06:27.080 home or with the kids of the family, you're like, ok, 0:06:27.240 --> 0:06:28.200 that sounds quite hard. 0:06:28.320 --> 0:06:29.320 Sounds like a lot of admins. 0:06:29.360 --> 0:06:32.200 It does, right, and it's an unknowing, and we already 0:06:32.200 --> 0:06:34.480 have in our mind that oh maybe that's a risky unknown. 0:06:34.880 --> 0:06:37.920 So what a ETF gives you in terms of that 0:06:38.160 --> 0:06:41.160 exchange traded fund to hold that is okay. Now I 0:06:41.240 --> 0:06:42.839 know that I don't have to worry about all of 0:06:42.839 --> 0:06:45.800 that admin of buying, holding, managing it. But I know 0:06:45.880 --> 0:06:48.040 that I've got a product that's going to track that 0:06:48.279 --> 0:06:50.880 bitcoin market, and that's actually what I'm interested in. I'm 0:06:50.880 --> 0:06:53.640 interested in knowing whether it's going to go up, and 0:06:53.680 --> 0:06:55.880 I want to be part of that if that's the case. 0:06:55.960 --> 0:06:59.200 But if I'm part of one that's listed overseas, why 0:06:59.200 --> 0:07:01.080 would I want to look at it locally listed one? 0:07:01.560 --> 0:07:02.320 What's the difference. 0:07:02.720 --> 0:07:05.480 So you've got choices there as well. Yes, you can 0:07:05.520 --> 0:07:09.760 go offshore and directly buy I shares ETF yourself. With 0:07:09.920 --> 0:07:12.160 that comes the fact that you need to be trading 0:07:12.320 --> 0:07:16.280 externally offshore on that market what currency is in So 0:07:16.320 --> 0:07:18.120 I'm going to have to pay a currency conversion rate 0:07:18.120 --> 0:07:21.120 because I'm buying here locally in New Zealand dollars. And 0:07:21.240 --> 0:07:24.560 also what's the cost of holding that on an offshore basis? 0:07:24.840 --> 0:07:27.960 And so you normally pay custody fees to pay offshore 0:07:28.400 --> 0:07:31.720 for an international custodian who's holding your yes it for 0:07:31.800 --> 0:07:34.520 you if you buy it locally, then what we've done 0:07:34.600 --> 0:07:37.520 is it's in a PIE structure. And so PIE is 0:07:37.600 --> 0:07:39.720 that structure that we have that's special to New Zealand. 0:07:40.000 --> 0:07:43.080 That means that all the taxable income in that fund 0:07:43.280 --> 0:07:45.760 are taxed at a final tax rate of twenty eight percent, 0:07:46.280 --> 0:07:48.360 and for some of us, that tax rate is lower 0:07:48.400 --> 0:07:51.920 than our own personal tax rate final tax in New Zealand. 0:07:52.360 --> 0:07:54.680 In New Zealand dollars on the exchange that I can 0:07:54.720 --> 0:07:57.200 buy and sell easily in my trading account. So we 0:07:57.240 --> 0:08:00.120 think those are all benefits. 0:07:59.080 --> 0:08:01.640 Super simple. I guess the point with PIE, and I'm 0:08:01.640 --> 0:08:04.240 not a tax advisor, but I would say that if 0:08:04.320 --> 0:08:06.200 your tax rate happens to be lower, you'll have to 0:08:06.280 --> 0:08:09.000 chase after that extra red yourself yeah, you're back in 0:08:09.040 --> 0:08:13.160 the admin you mentioned. I suppose as well the idea 0:08:13.200 --> 0:08:16.360 that you're getting exposured a bitcoin. You're not actually buying 0:08:17.040 --> 0:08:19.760 the currency, though, are you? And I'm thinking straight away, 0:08:20.400 --> 0:08:22.960 banks quite often want to know or lenders want to 0:08:22.960 --> 0:08:26.680 know if you're invested in crypto for anti money laundering purposes. 0:08:27.120 --> 0:08:30.480 So this is a way to actually own exposure to 0:08:30.480 --> 0:08:34.679 cryptocurrency without actually owning it. It's correct, So there's another 0:08:34.720 --> 0:08:36.880 little bonus perhaps for people to think about. 0:08:37.000 --> 0:08:38.880 It's very true. And that's when I say, you're not 0:08:38.960 --> 0:08:41.120 holding that direct asset, and that's the same as ol 0:08:41.160 --> 0:08:45.520 gold etf so similar idea, another alternative asset. You're not 0:08:45.679 --> 0:08:48.520 holding that gold, so no gold bars. It's going to 0:08:48.559 --> 0:08:51.600 be handing around in there, but you absolutely are owning 0:08:52.160 --> 0:08:55.200 They market the gold market as it were, and therefore 0:08:55.240 --> 0:08:57.520 you're tracking and following the market, but you don't have 0:08:57.559 --> 0:09:00.760 to worry about the actual underlying direct asset there. 0:09:00.960 --> 0:09:03.280 Weirdly, sort of gold's the original bitcoin. 0:09:02.920 --> 0:09:03.679 Isn't it It is? 0:09:04.000 --> 0:09:06.240 So yeah, it's scarce. There's only so much of it 0:09:06.280 --> 0:09:08.079 on the planet. You can't make anymore. It's something that 0:09:08.120 --> 0:09:10.640 people sort of figure has some inherent value. 0:09:10.760 --> 0:09:12.960 It's been long around for a very long time, and 0:09:13.040 --> 0:09:15.679 so people talk about it as a safe haven, but 0:09:15.760 --> 0:09:18.240 really it's a store of wealth, and it's the original 0:09:18.280 --> 0:09:20.720 store of wealth. You're right. But in terms of being 0:09:20.720 --> 0:09:22.600 that safe haven, and why we've added it in that 0:09:22.720 --> 0:09:26.800 alternative space in terms of those assets, is that it's 0:09:26.880 --> 0:09:30.000 uncorrelated to equity markets. And so by that I mean, 0:09:30.040 --> 0:09:32.160 you know, we talk a lot about diversification. What does 0:09:32.200 --> 0:09:34.800 that mean. So diversification can mean those buckets you're going 0:09:34.840 --> 0:09:37.400 to put your assets in traditionally, right, the cash, the bonds, 0:09:37.400 --> 0:09:39.800 the equities, et cetera, but now there are more of those. 0:09:39.920 --> 0:09:44.480 Property is a well understood acid allocation diversifier, and so 0:09:44.640 --> 0:09:47.600 these ones are the same. So for gold, we talk 0:09:47.640 --> 0:09:49.959 about it as a safe haven because it's not directly 0:09:50.040 --> 0:09:53.560 tied to or moving in tandem, and that's the correlation part. 0:09:53.600 --> 0:09:56.200 It's not moving in tandem with the equity markets, so 0:09:56.240 --> 0:09:59.720 it's a nice hedge against inflation. It's also a hedge 0:09:59.720 --> 0:10:02.120 of wind the equity markets are going at any time, 0:10:02.360 --> 0:10:04.520 and so people like it for that purpose. But it 0:10:04.520 --> 0:10:07.000 doesn't pay you an income, right, there's no dividend on that. 0:10:07.000 --> 0:10:09.400 It's a pure capital play. Basically, you're just bet hoping 0:10:09.440 --> 0:10:11.120 it's it'll increase in value and that's it. 0:10:11.240 --> 0:10:13.440 Yeah, And I think that store of wealth idea kind 0:10:13.440 --> 0:10:15.680 of brings that across, right. It's not like it's increased 0:10:15.679 --> 0:10:18.480 things sitting there paying you anything, but it is a 0:10:18.600 --> 0:10:22.880 rock solid store of that wealth it has it continues 0:10:22.880 --> 0:10:25.440 to have the same buying power over time that it 0:10:25.480 --> 0:10:26.160 had originally. 0:10:26.200 --> 0:10:27.839 You've got a store of wealth, You've got something you 0:10:27.880 --> 0:10:32.120 can dabble with. The US tech stocks story is one 0:10:32.160 --> 0:10:34.840 of those very very interesting kind of themes that people 0:10:34.880 --> 0:10:37.680 are investing in. What does this one have? How do 0:10:37.760 --> 0:10:40.400 you work out what to put it into? Or do 0:10:40.440 --> 0:10:43.160 you you're leaving this largely to your partners at I Show, This. 0:10:43.120 --> 0:10:45.520 One was very much driven by local demand. So when 0:10:45.559 --> 0:10:47.719 I took this job about a year ago, came from 0:10:47.720 --> 0:10:49.559 a wealth background. You talk to a lot of people 0:10:49.600 --> 0:10:51.680 and advisors who are investing, and a lot of them said, 0:10:51.679 --> 0:10:54.400 there's nothing locally in that US tech. We're all going 0:10:54.400 --> 0:10:56.960 offshore for that. So we looked at that and talked 0:10:57.000 --> 0:10:59.080 to I Shares and said, well, how else do we 0:10:59.160 --> 0:11:01.040 bring that on shore and what does that look like? 0:11:01.440 --> 0:11:04.560 So we've chosen one of their again ETFs to wrap 0:11:04.559 --> 0:11:08.360 in our local pie wrapper here. We've also done this 0:11:08.360 --> 0:11:10.880 a slightly different way because we're hedging this one hundred percent. 0:11:11.400 --> 0:11:13.559 So what that means is that instead of worrying so 0:11:13.600 --> 0:11:16.160 we've done the US tech sector. Instead of worrying that 0:11:16.320 --> 0:11:18.520 how the US dollar is going to move in relation 0:11:18.640 --> 0:11:20.400 to the Kiwi dollar, we've just taken that out of 0:11:20.400 --> 0:11:22.280 the equation and said you're buying it here in your 0:11:22.320 --> 0:11:24.960 local Keiwi dollars. You're buying it because you want to 0:11:24.960 --> 0:11:28.080 be able to keep track of where that innovative tech 0:11:28.200 --> 0:11:31.400 sector in the US market is going. And therefore we've 0:11:31.440 --> 0:11:34.720 taken their currency exposure out by saying we're taking care 0:11:34.720 --> 0:11:36.880 of that and running the local fund. We will one 0:11:36.960 --> 0:11:40.080 hundred percent hedge that so that if it's going up 0:11:40.120 --> 0:11:42.840 twenty percent, your value of yours is also up twenty percent. 0:11:42.920 --> 0:11:45.040 Don't worry if then the New Zealand dollars dropped and 0:11:45.080 --> 0:11:46.959 therefore you have to take some percentage points off it 0:11:46.960 --> 0:11:49.760 because your key is worth less than the US. 0:11:49.440 --> 0:11:53.000 Now, because that can really really change the bottom line result, 0:11:53.080 --> 0:11:54.920 Candent that can that cutsy risk. 0:11:54.840 --> 0:11:57.880 A new one is the US tech sector. So it 0:11:57.960 --> 0:12:00.520 is based on the S and P. It's the top 0:12:00.640 --> 0:12:04.120 innovative US tech companies that are in that space, and 0:12:04.200 --> 0:12:06.520 therefore you want to be able to track that market 0:12:06.520 --> 0:12:08.400 because that's what you're putting it in your portfolio for. 0:12:09.200 --> 0:12:11.599 Not only do you want some diversification, but lots of 0:12:11.679 --> 0:12:14.120 us like this idea of I call it core and explore, 0:12:14.160 --> 0:12:16.120 or you can call it cora a niche. You know 0:12:16.160 --> 0:12:18.480 what your solid asset allocation is, so how much you 0:12:18.520 --> 0:12:20.640 want and kind of income type or what you want 0:12:20.640 --> 0:12:23.280 in growth where you've got your safe stores of wealth 0:12:23.360 --> 0:12:26.720 versus your speculative growth ones. And so some of us 0:12:26.760 --> 0:12:28.640 when we look at our atfs might think that I'm 0:12:28.679 --> 0:12:32.120 really interested in the global healthcare sector, or I believe 0:12:32.200 --> 0:12:35.480 that Ossie resources are going to take off, or Japan 0:12:35.679 --> 0:12:38.680 is poised for a massive growth in the economy. But 0:12:38.760 --> 0:12:40.960 that's where you put your little explore around the edges. 0:12:41.080 --> 0:12:43.600 I have a view on that area of the market. 0:12:43.800 --> 0:12:46.040 Same with a US tech and it's been really popular 0:12:46.080 --> 0:12:48.079 for a long time. It's got some great growth in it, 0:12:48.600 --> 0:12:50.760 and I think the beauty of the US market and 0:12:50.840 --> 0:12:54.240 the US tech part there is it's such a large market, 0:12:54.360 --> 0:12:58.080 so it's really nicely self regulating. So if you look 0:12:58.120 --> 0:13:00.960 back over time of what those tops ten to twenty 0:13:01.000 --> 0:13:04.840 holdings will be, they churn themselves based on which are 0:13:04.920 --> 0:13:07.319 the up and coming If Navidia is coming through or 0:13:07.360 --> 0:13:10.360 if one drops out, We've got all of those top 0:13:10.400 --> 0:13:12.600 holdings for you, and we will make sure that we're 0:13:12.640 --> 0:13:15.920 holding those in proportion to their waiting in that market. 0:13:16.200 --> 0:13:19.280 And therefore you truly are going to have the same 0:13:19.360 --> 0:13:21.720 exposure as how all those tech companies in the US 0:13:21.720 --> 0:13:22.040 are doing. 0:13:22.200 --> 0:13:24.920 Cel those top holdings have been pretty top heavy for 0:13:25.000 --> 0:13:27.520 quite a long time. The h something will change. 0:13:27.880 --> 0:13:30.760 Yeah I'm talking back years, but yeah, you don't have 0:13:30.840 --> 0:13:32.960 to worry about is something the next Kodak or have 0:13:33.000 --> 0:13:35.719 I got the next Navidia, because they will work their 0:13:35.720 --> 0:13:38.000 way through into that index and we will hold them. 0:13:38.559 --> 0:13:40.240 So what would be the attraction with all of that 0:13:40.360 --> 0:13:42.680 on offer and people looking at something that's based around 0:13:42.679 --> 0:13:43.920 the NZX twenty. 0:13:44.400 --> 0:13:47.080 Yes, so it's the top twenty companies in New Zealand 0:13:47.920 --> 0:13:49.880 and So if you're interested in a view when you 0:13:49.920 --> 0:13:53.120 talk about your allocation of what our home economy and 0:13:53.160 --> 0:13:55.400 country is doing, then this is a really good way 0:13:55.480 --> 0:13:58.080 to say, well, I've got the top twenty the largest 0:13:58.200 --> 0:14:02.720 most liquid actively trade New Zealand stocks, So they're listed 0:14:02.800 --> 0:14:05.360 keyw companies and I've got the top twenty of those, 0:14:05.559 --> 0:14:08.160 and so therefore a slice of home where I am. 0:14:08.160 --> 0:14:09.800 I've got to spend my dollars here most of the 0:14:09.840 --> 0:14:13.400 time in terms of participating in the local economy. Then 0:14:13.400 --> 0:14:16.160 I've also got a portion of my portfolio that is 0:14:16.240 --> 0:14:19.040 invested in the local economy and those top twenty companies 0:14:19.080 --> 0:14:20.280 and how they are doing. 0:14:21.280 --> 0:14:25.040 So you put these out briefly on an early release, 0:14:25.080 --> 0:14:28.200 and then they're going to be traded I think from 0:14:28.200 --> 0:14:32.040 this week onwards. Yes, what sort of early indications did 0:14:32.080 --> 0:14:34.040 you get about what people like and why they like them? 0:14:34.400 --> 0:14:36.160 So we went out and we've done this time a 0:14:36.160 --> 0:14:38.880 pre application process. So we've partnered with shares E's. We 0:14:38.960 --> 0:14:43.200 also have MUFG as the registry of our listed ETFs 0:14:43.440 --> 0:14:45.320 and gone out with them as well to ask people 0:14:45.320 --> 0:14:47.160 if they've got interest in that. And then we've got 0:14:47.160 --> 0:14:51.840 our own intermediary channels around advisors, etc. Our most popular 0:14:52.200 --> 0:14:55.360 has been the US Tech, followed by the Gold, then 0:14:55.400 --> 0:14:57.280 Bitcoin and then the ends at Next twenty at this 0:14:57.360 --> 0:15:00.320 stage but actually a lot closer together than you might 0:15:00.360 --> 0:15:02.760 think in terms of that early interest, so we'll be 0:15:02.840 --> 0:15:05.840 really fascinating. That's the pre application process where people have 0:15:05.960 --> 0:15:07.760 signed up and said, yet when it goes live, I'd 0:15:07.800 --> 0:15:10.880 like some of that money with their mouth is yeah exactly. 0:15:11.120 --> 0:15:13.280 And then when we do go live and have them out, 0:15:13.320 --> 0:15:16.080 then they're obviously tradeable on the exchange. Are we interesting 0:15:16.120 --> 0:15:19.040 to see if that early level of largely retail investor 0:15:19.080 --> 0:15:22.440 interest stacks up as those ETFs are on the exchange 0:15:22.480 --> 0:15:23.920 and start to be actively traded. 0:15:24.040 --> 0:15:27.360 Are you using these ETFs as an investor to try 0:15:27.360 --> 0:15:30.920 and get that exposure, to get comfort with understanding how 0:15:30.960 --> 0:15:33.280 the market works and then moving on to something else, 0:15:33.760 --> 0:15:36.880 or do you see them as something that an investor 0:15:36.920 --> 0:15:40.400 could potentially hold as part of their portfolio right the 0:15:40.400 --> 0:15:41.240 way through. 0:15:41.600 --> 0:15:44.000 Both of those Actually, a lot of us might do 0:15:44.080 --> 0:15:46.800 the exactly there as you talk about that's my baby steps. 0:15:46.960 --> 0:15:50.120 So I actually believe in US tech or I believe 0:15:50.160 --> 0:15:52.480 in robotics, but I don't really know which of those 0:15:52.520 --> 0:15:55.520 companies in particular, but I do believe in that sector 0:15:55.800 --> 0:15:58.760 or that disegregated view of the market. So perfect way 0:15:58.800 --> 0:16:01.760 to enter that explore part of your portfolio to say 0:16:02.040 --> 0:16:04.160 I think I'm interested in that sector, so let's buy that, 0:16:04.360 --> 0:16:08.240 and I'm buying a basket of those stocks, and I'm 0:16:08.280 --> 0:16:11.160 now tracking that market. If that continues to go on 0:16:11.200 --> 0:16:13.480 and that's a particular area of interest for me, then 0:16:13.520 --> 0:16:15.400 I might find that there's one or two in there 0:16:15.400 --> 0:16:17.680 that I really like more than the others, and so 0:16:17.800 --> 0:16:20.680 I can hold them directly. By buying that stock directly 0:16:20.960 --> 0:16:23.160 doesn't necessarily mean I have to sell the ETF, because 0:16:23.200 --> 0:16:25.360 I've still got a whole market following bet. But I 0:16:25.440 --> 0:16:28.640 might want to say, actually, I like this one even more, 0:16:28.680 --> 0:16:30.560 and I think into the long run, I want to 0:16:30.600 --> 0:16:33.080 hold that too. But when we look off shore and 0:16:33.120 --> 0:16:35.520 to a lot of investors, when we think about wealthier 0:16:35.520 --> 0:16:38.640 individuals or people with a larger portfolios, a lot of 0:16:38.680 --> 0:16:42.440 people have now moved away from individual stockholding and actually 0:16:42.480 --> 0:16:46.359 hold a whole portfolio of ETF or FUN type structures. 0:16:46.520 --> 0:16:48.560 And that's not to say that they're the multi asset 0:16:48.560 --> 0:16:51.680 fun They've got all those individual building block components in there. 0:16:52.320 --> 0:16:54.800 But it just is a way that suits people to 0:16:54.880 --> 0:16:57.560 get a good diversified spread of everything that's going on, 0:16:57.720 --> 0:17:02.120 but still have from particular mars at all thematic feelings 0:17:02.120 --> 0:17:03.240 and beliefs within the book. 0:17:04.000 --> 0:17:07.200 So these four that you're launching, they feel going back 0:17:07.200 --> 0:17:10.000 to your core and explore idea. They feel very much 0:17:10.040 --> 0:17:13.080 part of the Explore side of things. This is people 0:17:13.119 --> 0:17:15.320 who are feeling a little bit more confident taking. Does 0:17:15.320 --> 0:17:17.760 that mean that you feel that people are at the 0:17:17.800 --> 0:17:20.760 stage where we've done all of the education around the 0:17:20.800 --> 0:17:21.600 core that we need. 0:17:21.480 --> 0:17:25.639 To definitely not and that's also part of our rebrand 0:17:25.760 --> 0:17:29.200 and that wise investmart This comes with a renewed commitment 0:17:29.320 --> 0:17:32.960 to do investor education. Really what it is it's about, 0:17:33.200 --> 0:17:36.119 do we as New Zealanders understand it enough about maths 0:17:36.119 --> 0:17:39.040 and money? And those of your two we go back. 0:17:38.840 --> 0:17:40.760 To the core, Well, the stats out of the schools 0:17:40.800 --> 0:17:43.520 would suggest horribly not yes, And I think that. 0:17:43.520 --> 0:17:46.119 We talk a lot about do we understand enough about maths? 0:17:46.640 --> 0:17:48.720 Probably not, as you said when you look at the scores, 0:17:48.880 --> 0:17:51.360 but also money kind of goes with maths, and if 0:17:51.359 --> 0:17:53.439 we put it together at the very basic form at 0:17:53.440 --> 0:17:55.760 the beginning, then those are some things that we can 0:17:55.800 --> 0:17:58.560 teach all of our children and everyone who's getting educated 0:17:58.600 --> 0:18:03.240 in New Zealand about simple things like compounding interest. If 0:18:03.240 --> 0:18:06.119 I put my dollar in now and that grows to 0:18:06.200 --> 0:18:08.360 a dollar twenty at the end of the year. Then 0:18:08.440 --> 0:18:11.399 next year, I've invested a dollar twenty and that grows 0:18:11.440 --> 0:18:14.040 proportionally more. You don't even have to do anything else 0:18:14.480 --> 0:18:19.640 apart from it continues to compound and pay the fees. Absolutely, yeah, absolutely, 0:18:19.800 --> 0:18:22.760 But that's a different view from I've invested my money 0:18:22.760 --> 0:18:24.399 and now I've made a profit, and I'm taking that 0:18:24.440 --> 0:18:26.320 out to spend on something else. So next year, I've 0:18:26.320 --> 0:18:29.600 still got the base dollar invested. Or I've invested my 0:18:29.640 --> 0:18:31.800