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Speaker 1: This is mesters in business with very results on Bloomberg Radio.

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Speaker 1: This week. On the podcast, I have an extra special guest.

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Speaker 1: Luis Paruga, has a fascinating career as both a tech

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Speaker 1: wizard and investment banker before becoming CEO of global X

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Speaker 1: e t f s. They are a forty billion dollar

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Speaker 1: thematic E t F shop that have some of the

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Speaker 1: most interesting E t F s UH that are out there. Sure,

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Speaker 1: most of the industry are passive giant UH e t

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Speaker 1: f s from the likes of Vanguard and Black Rock

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Speaker 1: and State Street, but the space that those shops don't

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Speaker 1: play in are coming up with ideas for themes that

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Speaker 1: allow investors to focus on a very specific idea within

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Speaker 1: the world of investor thing and we discuss everything from

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Speaker 1: their founder run company E t F. I love the

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Speaker 1: stock symbol BOSS to lithium two covered coal writing within

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Speaker 1: NASDAK and SNP wind Power, just on and on. They

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Speaker 1: have uranium, just really fascinating ideas that allow investors to

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Speaker 1: express their investment themes in a very specific, fairly low cost,

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Speaker 1: professionally managed e t F. I found the conversation fascinating

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Speaker 1: and I think you will also if you're at all

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Speaker 1: interested in E t F s and thematic investing in

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Speaker 1: looking at the world through a somewhat different perspective than

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Speaker 1: what we assume is standard from the giant E t

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Speaker 1: F companies. I think you'll find this to be really

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Speaker 1: an intriguing conversation. With no further ado. My interview of

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Speaker 1: global X CEO Louise Baruga. Thank you for having me Berry.

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Speaker 1: So let's talk a little bit about your background. Before

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Speaker 1: you joined Global Acts, you were an investment banker at Jefferies.

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Speaker 1: You advised on M and A and investures and capital raises,

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Speaker 1: and before that, Morgan Stanley doing technology and operations planning

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Speaker 1: for the Wealth and Asset Management Group discussed that background

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Speaker 1: and how does that lead up to a career in

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Speaker 1: E t S? You know, great questions. So, yeah, I

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Speaker 1: had a career in investment banking with Jeffries and it

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Speaker 1: was a really good professional experience because I did have

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Speaker 1: the opportunity to work in M and A, equity and

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Speaker 1: dead financing. I had a chance to be part of

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Speaker 1: somebody interesting transactions in the banking space. I did in

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Speaker 1: two thousand thirteen banking transaction that the market had seen

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Speaker 1: since the Financial crisis. It was at two point four

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Speaker 1: billion dollar deal, and that was a very interesting experience

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Speaker 1: because it really allowed me Berry to understand this like

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Speaker 1: cology behind MNE, which it came in very, very handy

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Speaker 1: later on in the context of of Global lex Um.

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Speaker 1: From the standpoint of Morgan Stanley was the earlier part

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Speaker 1: of my career and it's a great company, a great

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Speaker 1: group of people. I I would be forever thankful to

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Speaker 1: to the guys that Morgan Stanley because they gave me

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Speaker 1: the first opportunity to work to get a full time

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Speaker 1: job in the U S when I first moved from

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Speaker 1: from Spain, and I learned alot because I spent a

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Speaker 1: lot of time with financial advisors, which as you know,

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Speaker 1: is a key segment of our client base today. So

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Speaker 1: phenomenal learning experience with both Jefferis and Morgan Stanley. So

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Speaker 1: you move here from Spain. What is the financial advice

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Speaker 1: world like in Europe? What's it like in Spain? It

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Speaker 1: has to be such a different set of the retirement

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Speaker 1: planning is different, the safety and that that it's different. What's

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Speaker 1: the finance industry like in Spain? It's fundamentally different. First

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Speaker 1: of all, I think the amount of investors and participate

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Speaker 1: in the financial markets is much smaller than it is

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Speaker 1: in the US, and I think that the financial advisors

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Speaker 1: are used, but not as widely used as they are

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Speaker 1: in the US. And definitely the retail market participation is

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Speaker 1: significantly lower than you can see in the in the

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Speaker 1: U S. But I think it's definitely changing very because

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Speaker 1: you know, you say, more and more fintech platforms and

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Speaker 1: robo advisors that in a way are making access in

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Speaker 1: financial markets easier for more and more investors in Spain.

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Speaker 1: And also I think there are a few dynamics specifically

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Speaker 1: in Spain where people are really concerned about the sustainability

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Speaker 1: of the traditional pension plans. People in Spain when I

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Speaker 1: was growing up in the eighties and nineties, they expect

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Speaker 1: to just retire and and have the government give them

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Speaker 1: like a pay check every month. And I think people

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Speaker 1: are realizing that it's becoming more and more challenging over time.

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Speaker 1: So that's incentivizing more and more investors in Spain to

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Speaker 1: participate in the financial markets, which I think is really positive.

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Speaker 1: So you joined Global Accent What led you to them?

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Speaker 1: From Jefferies great questions? So I guess a couple of

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Speaker 1: things up until that point, Berry, I was I had

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Speaker 1: worked only for really big companies Morgan Instantly and Jeffrey,

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Speaker 1: so I was definitely looking for something more entrepreneurial. One

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Speaker 1: of my biggest frustrations with working at a big company

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Speaker 1: is that they tend to be very bureaucratic. It takes

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Speaker 1: a lot to get things done. So I was definitely

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Speaker 1: looking for something more entrepreneurial where I could see more

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Speaker 1: of an impact of my contributions in the actual output

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Speaker 1: of of the business. So I was definitely one of

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Speaker 1: the key drivers. And then the other driver Berry was

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Speaker 1: that I I saw the potential of the ETF industry.

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Speaker 1: Quite frankly, I was already an investor in e t

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Speaker 1: f s at that point in time. I remember telling myself,

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Speaker 1: why would anyone invest in mutual funds when you can

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Speaker 1: buy an e t F instead. You have deliquently did

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Speaker 1: the tax efficiency, the transparency, and I did the math,

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Speaker 1: and I think at that point in time, roughly speaking,

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Speaker 1: assets in it t s were roughly just ten T

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Speaker 1: of assets in mutual funds, and I was pretty convinced

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Speaker 1: that number was increased significantly. So I saw the opportunity

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Speaker 1: and that when global X came along and where are

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Speaker 1: we know what percentage of the assets are in e

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Speaker 1: t F relative to mutual funds right now? I think

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Speaker 1: around thirty three or thirty four percent, so tripled since

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Speaker 1: you joined global and I think that trend, quite frankly

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Speaker 1: berry is accelerating, and my view is that it's going

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Speaker 1: to continue to to increase even faster. I think there

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Speaker 1: are many catalysts, lots of mutual funds to e t

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Speaker 1: s that we're seeing in the market. I think for

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Speaker 1: the one K plans are starting to use it t

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Speaker 1: F more more broadly, and then some of the new

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Speaker 1: changes around you know how you can do actively manage

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Speaker 1: the strategies in the context of an ETF. I think

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Speaker 1: that's going to accelerate the adoption of a d F significantly.

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Speaker 1: Our mutual friend Dave Nodded has joked that if mutual

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Speaker 1: funds came out today, they would never be approved by

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Speaker 1: the SEC. What do you mean you share capital gains

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Speaker 1: with people who haven't sold. That's a terrible idea, and

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Speaker 1: clearly E t F s UH cleaned that up. Um. So,

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Speaker 1: not only has the E t F industry been gaining momentum,

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Speaker 1: but global X has really grown. You're now just about

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Speaker 1: forty billion dollars in a very challenging year. Tell us

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Speaker 1: what led to this growth? What what's made you guys

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Speaker 1: as successful as you've become from a much smaller base

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Speaker 1: a decade ago. Yeah, I mean, it's been a beautiful ride,

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Speaker 1: to be honest. I joined Global Eggs in two thousand

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Speaker 1: and fourteen and we have, if I remember correctly, approximately

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Speaker 1: one and a half billion dollars in au M. I

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Speaker 1: was employee number ten and for all intents and purposes,

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Speaker 1: Bury we were to startup. I mean when I joined,

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Speaker 1: I didn't have a computer for ten days, so you

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Speaker 1: had a limit of that link. So fast forward to

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Speaker 1: where we are today. We have over forty billion dollars

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Speaker 1: in assets under management, we have two hundred employees, and

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Speaker 1: we have a local presence in all of the major

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Speaker 1: markets around the world. And and to your point, I

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Speaker 1: think there are two main drivers of that growth. One

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Speaker 1: is our leadership in thematic investing is an area that

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Speaker 1: we've been very focused on. And the second aspect of

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Speaker 1: our strategy that has been very very helpful is our

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Speaker 1: global expression. We do believe the growth of the ATF

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Speaker 1: industry is not just an U s phenomenon is a

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Speaker 1: global phenomenon, and we want to be able to service

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Speaker 1: our kinds in all regions of the world. So let's

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Speaker 1: talk about the thematic side of it. When it comes

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Speaker 1: to passive, there are obviously three giants. It's Vanguard, Black

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Speaker 1: Rock and State Street, and then there's everybody else. But

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Speaker 1: the thematic side seems to be wide open. Is that

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Speaker 1: the thinking, Hey, here's here's some open fields. Let's let's

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Speaker 1: see what we can do here and leave the behemoth

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Speaker 1: to charge four bibs on a SMP five or a

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Speaker 1: total market funds. Yeah. I mean that's a great point.

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Speaker 1: And I give you a little bit of the history

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Speaker 1: of global legs because I think it's very relevant. Think

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Speaker 1: about the two founders of global Lex, Bruno and Jose

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Speaker 1: They set up global Lex in two thousand eight, and

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Speaker 1: from my tandpoint, you have to be a little bit

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Speaker 1: crazy to start in the sure business, and they didn't

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Speaker 1: have much capital and enter the e F industry to

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Speaker 1: compete with the large, the largest ASSEM managers in the world.

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Speaker 1: But I think they did something very well. From the

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Speaker 1: very beginning, they realized that the most effective way to

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Speaker 1: compete was through innovation and That's why very early on

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Speaker 1: they focused on on thematic investing and they launched which

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Speaker 1: I believe is the first thematic e t F in

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Speaker 1: the U S which was our Global Lex Lithium and

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Speaker 1: battery technology exactly exactly, And and that's a big fun

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Speaker 1: that's a three or four billion dollars something like that. Yeah,

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Speaker 1: I mean twelve years later. It wasn't like that at

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Speaker 1: the beginning, but twelve years later it's now going to

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Speaker 1: be yet roughly speaking, around four billion dollars in assets

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Speaker 1: and a very successful strategy. So what I told the

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Speaker 1: friend I was interviewing you, He says, why does the

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Speaker 1: world really need another e t F provider? And my

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Speaker 1: answer was, Hey, not everybody wants to buy a passive

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Speaker 1: index around the satellite of a core portfolio, or even

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Speaker 1: just hey I have an idea. I think this is

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Speaker 1: going to change the world. Is that the clients you're

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Speaker 1: aiming for? Is that who the global X investor is? Yeah,

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Speaker 1: I mean gad Franco. We have institutional investor, we have

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Speaker 1: financial advancetors, we have retail clients. But I think the

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Speaker 1: main reason behind the success and the growth of amatic

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Speaker 1: investing is I think it's pretty straightforward, and the world

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Speaker 1: very is changing at the fastest space that we have

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Speaker 1: seen at any point in history. And what I see

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Speaker 1: from more investors is that they don't think the traditional

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Speaker 1: and traditional investment approach of looking at historical data to

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Speaker 1: predict future returns is no longer enough. Many financial advisors

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Speaker 1: and clients are telling us that an investment approach that

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Speaker 1: looks into the future is needed, and that's where thematic

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Speaker 1: investing comes into play. And I always use the exact

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Speaker 1: same example. How you invest in in Google or in

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Speaker 1: Facebook in two thousand three. You only invest in those

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Speaker 1: companies if you are taking an investment approach that is

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Speaker 1: looking into the future, because those business models, those products,

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Speaker 1: those services simply didn't exist. And I think for our standpoint,

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Speaker 1: thematic investing is the approach that allows investors to do

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Speaker 1: just that makes sense to me. Let's talk about some

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Speaker 1: of your more popular e t f s. But before

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Speaker 1: we drill down on to some of my favorites, I

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Speaker 1: have to ask where these ideas come from. Some of

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Speaker 1: these are really unusual, different, innovative. How do you guys

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Speaker 1: come up with the theme for a new ETF? Great question,

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Speaker 1: and I mean I guess it comes down to our

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Speaker 1: proud development and our research team. Right now, we have

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Speaker 1: a team very of over thirty research analysts located all

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Speaker 1: over the world, and basically all they do is looking

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Speaker 1: at these trends, talking to industry consultants, industry participants, and

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Speaker 1: CEOs to really try to get a sense of where

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Speaker 1: like the most relevant emerging trends are. And once we

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Speaker 1: have at any point in time, we can have anywhere

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Speaker 1: between twenty two thirty things that we're looking at. And

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Speaker 1: then in terms of how we decide what things we

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Speaker 1: eventually bring to market, we apply like a very simple

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Speaker 1: but it's still robust framework that we have developed over

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Speaker 1: the last fourteen years. We look at three things. We

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Speaker 1: look at conviction, we look at investability, and we look

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Speaker 1: at a time horizon. And let me explain that a

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Speaker 1: little bit. Conviction, so we look at, you know, whether

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Speaker 1: or not a specific theme is something that we have

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Speaker 1: a high degree of conviction that will be a trend

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Speaker 1: that will definitely have an impact in the economy over

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Speaker 1: the next two or three decades. We look at decades,

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Speaker 1: two or three decades, so we're not interesting interested in

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Speaker 1: any that is kind of like popular for a couple

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Speaker 1: of years, and I'll get to that in just one second.

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Speaker 1: We're literally looking for the structural shifts in the economy.

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Speaker 1: Think of robotics and artificial intelligence, cyber security, cloud competing.

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Speaker 1: So that's the first step that we as a group

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Speaker 1: try to assess our level of conviction about a given theme.

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Speaker 1: Then the second step, which is very important, is investability.

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Speaker 1: We need at least twenty five to thirty companies to

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Speaker 1: be able to launch an e t F, so that's

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Speaker 1: a minimum thirty count from a diversification standpoint, I think

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Speaker 1: that's that's the recommended ex sense minimum amount of companies.

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Speaker 1: And then finally we look at time horizon to your

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Speaker 1: earlier point. Very we are not interested in trends that

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Speaker 1: will be popular for a couple of of years. We

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Speaker 1: are literally looking at disruptive and structural shifts in the

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Speaker 1: economy that in some cases can take decades to play out.

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Speaker 1: That's how we think about thematic investing. So one of

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Speaker 1: my pet theories is that half the battle for e

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Speaker 1: t S attracting assets is the ticker. If you have

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Speaker 1: a catchy ticker, you halfway there. Am I out in

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Speaker 1: a by myself with that, or do you think there's

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Speaker 1: any truth to that, I mean, I would say I

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Speaker 1: think that's I partially agree with that. I think obviously

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Speaker 1: the ticket is very is very important particlely for the

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Speaker 1: self detected retail client base. Catchy ticker can definitely increase

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Speaker 1: the chances of a product to be successful. But I

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Speaker 1: couldn't discount how much work goes into the proud development

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Speaker 1: part of it has to be a good product. It

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Speaker 1: has to be properly designed, and there are lots of

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Speaker 1: decisions that go into creating an e t F berry.

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Speaker 1: You have to define the theme that you have to

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Speaker 1: define the different pockets within the theme. Look at liquidity

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Speaker 1: market cup wedding virtues, equal weight rebalancing frequencies. So the

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Speaker 1: product has to be very well designed to be successful.

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Speaker 1: But yes, if you, on top of up have an

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Speaker 1: attractive ticker, it can definitely increase the chances of being successful.

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Speaker 1: So let me talk about some of my favorites of

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Speaker 1: your e t F s we already mentioned the lithium

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Speaker 1: will come back to that when we talk about some

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Speaker 1: other related a t F. I love this founder run companies.

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Speaker 1: What's the ticker for that bus? How great is that

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Speaker 1: boss for an e t F of companies? That are

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Speaker 1: still run by the founders. So the first question is

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Speaker 1: why does that matter? Why does founder run companies make

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Speaker 1: a difference. I mean, our analysis was that the companies

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Speaker 1: that are run by their founders tend to make long

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Speaker 1: term investment decisions in the business and versus having the

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Speaker 1: pressure of having to report quarterly earnings and like the

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Speaker 1: earnings targets that research analysts and you know tend to

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Speaker 1: assign to every single company. So we do think these

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Speaker 1: companies over the long run could perform better than the

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Speaker 1: broader market. And also it's an interesting play in the

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Speaker 1: sense that founder rank companies tend to take a more

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Speaker 1: cautious approach to business than maybe other type of of companies.

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Speaker 1: That was the main value proposition behind the founder run companies.

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Speaker 1: And to your point that it was a very interesting tacker.

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Speaker 1: We spend our problem and teams spent literally weeks to

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Speaker 1: come up with with that one. Well, it's brilliant. Let's

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Speaker 1: do another one. The interest rate hedge at F stock

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Speaker 1: symbol rate. That's another a great ticker. How do you

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Speaker 1: hedge interest rate risk in an e t F. Well,

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Speaker 1: in this part of our case, we're doing that through

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Speaker 1: like TSE the Revatives is a fairly complex product. We

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Speaker 1: tried for the most part, we tried to follow like

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Speaker 1: a passively managed approach to all of ours. In this

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Speaker 1: part of our case, it was very difficult to provide

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Speaker 1: that structure through like a passively managed strategy. So we

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Speaker 1: take a more tactical and active managed approach to that

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Speaker 1: particular product, and we were very lucky because we were

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Speaker 1: able to secure this ticker red, which is definitely it's

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Speaker 1: a very it's a very young product. We just launched

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Speaker 1: a few months ago, but we have a high degree

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Speaker 1: of confidence that it will be very successful over the

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Speaker 1: aron run. The timing is pretty good. You you have

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Speaker 1: an interest rate hedge as rates start to spike up.

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Speaker 1: You literally launched within a month of the first FED increase,

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Speaker 1: so that's pretty timely. Let's talk about cybersecurity. Ticker bug Bug,

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Speaker 1: tell us what's in the cybersecurity? I mean, cyber security

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Speaker 1: is one of our highest conviction things right now for

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Speaker 1: a number of of reasons. Very First of all, there

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Speaker 1: are fourteen point four billion devices connected to the Internet

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Speaker 1: right now, which is great, but you know the day

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Speaker 1: you know, the more devices that you have connected to

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Speaker 1: the Internet, the more points of vulnerability there are, so

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Speaker 1: the need for cybersecurity is very obviously we have seen

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Speaker 1: that also in the context of the conflict between Russia

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Speaker 1: and Ukraine, were like the narrative over the first few

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Speaker 1: weeks was all around cybersecurity and and those types of things,

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Speaker 1: And the analysis that we've been doing in our research team,

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Speaker 1: we expect global cybersecurity is spending over the next five

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Speaker 1: years to be around one point five trillion dollars. So

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Speaker 1: we have a high degree of conviction in that theme.

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Speaker 1: And even in the context of a very volatal environment

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Speaker 1: that we have seen over the last four quarters, we

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Speaker 1: continue to see consistent influence coming into that DF. And

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Speaker 1: let's talk about what I think is your biggest fund

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Speaker 1: with about six billion dollars is the NASTAC one hundred

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Speaker 1: covered Quality t F. You also have an SMP fire

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Speaker 1: covered call. Why covered calls? What what does that create

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Speaker 1: within the t F. We think it's a great solution

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Speaker 1: for for clients that are looking for two things, either

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Speaker 1: income or a risk management tool to play the volatile

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Speaker 1: environment that we have seen in the markets. Our flagship

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Speaker 1: product q I l leviaches and as that one one

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Speaker 1: covered called ETF with six point six billion dollars in

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Speaker 1: a u M it's right now roughly offering a dividend

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Speaker 1: yield of around twelve percent, So you are an income

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Speaker 1: oriented investor. Particularly vary in the context of right now.

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Speaker 1: Things have changed recently, but we have been for an

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Speaker 1: extended period of time going through like a historically low

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Speaker 1: interest rate environment. So many of our clients were struggling

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Speaker 1: to find alternative sources income for their p all us,

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Speaker 1: and this product paying over the twelve dividen dive then

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Speaker 1: yield and monthly distributions was very, very attractive for many

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Speaker 1: of our our clients. So so how do you manage

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Speaker 1: the risk that, hey, if the nastack starts going higher

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Speaker 1: and from the lows in October Town, now we're up

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Speaker 1: i don't know, ten percent almost in the in the nastac.

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Speaker 1: How do you manage having the stock called away from you?

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Speaker 1: When you're writing dividends, you're giving someone the right to

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Speaker 1: purchase that stock at a higher price if you run

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Speaker 1: up to that price. How do you hedge that exposure

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Speaker 1: to make sure the underlying doesn't get called away? There's

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Speaker 1: a good question what happens there is the volatility that

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Speaker 1: you see in the market That's why. That's another way

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Speaker 1: in which we are seeing clients using this covered college

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Speaker 1: strategies is almost as a risk management tool because in

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Speaker 1: this environment of high levels of volatility, the option premium

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Speaker 1: that you get on that when you write the option

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Speaker 1: goes app so effectively when there is more volatility, you

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Speaker 1: get like a higher dividen yield of them one. So

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Speaker 1: that's why more and more clients in the contract the

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Speaker 1: last for course, have been using this strategy as a

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Speaker 1: way to monetize that volatility. So that one is your

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Speaker 1: flagship at six billion dollars, you have some et fs

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Speaker 1: with you know a handful of millions of dollars. At

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Speaker 1: what point are these break even? What is the self

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Speaker 1: funding level for any t F? I've heard some people

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Speaker 1: say million, fifty million, a hundred million. How much assets

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Speaker 1: doesn't e t F have to attract before your confident? Hey,

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Speaker 1: this is at least a break even and it can

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Speaker 1: change quite a bit based on the exposure of the

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Speaker 1: of the a t F, particularly the geographic exposure in

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Speaker 1: our case. Roughly speaking, they break even point is anywhere

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Speaker 1: between five fifty to a hundred million dollars in a

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Speaker 1: u M, which is really a pretty big number. It

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Speaker 1: shows you how challenging it is for some of the

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Speaker 1: smaller e t F companies that you know they have

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Speaker 1: ten million dollars in in an e t F, you're

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Speaker 1: suggesting that's the money loser for that company. I mean

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Speaker 1: it always. It depends on the economies of the scale

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Speaker 1: of the business that you are you are considering. But

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Speaker 1: when you factor in you know, legal costs, compliance, portfolio management, trading,

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Speaker 1: there is a lot that goes into launching and and

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Speaker 1: e t F. So yeah, I mean, I do think

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Speaker 1: of fifties around the sweet spot in terms of break even.

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Speaker 1: So let's talk about some more of these e t fs.

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Speaker 1: But I really want to start by asking how much

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Speaker 1: horsepower goes into running these funds. You know you have

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Speaker 1: a pre sizeable workforce. Is this mostly data and operations

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Speaker 1: people or research or trading? What's the underlying human resources

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Speaker 1: that you have to pour into launching a new ETF?

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Speaker 1: Great question. It's a combination of both, and I'd like

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Speaker 1: to think about it in two different ways. One is,

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Speaker 1: when the the a t F is already in the

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Speaker 1: market and it's already trading on exchange, then you need

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Speaker 1: a fer amount of resources. You know portfolio management, trading resources,

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Speaker 1: profile administration, compliance, risk management, and products management people just

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Speaker 1: to make sure that the product is behaving exactly how

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Speaker 1: it's supposed to behave and right now we have close

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Speaker 1: to a hundred at F. Obviously, it takes a for

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Speaker 1: amount of resources, and then before you actually launch the

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Speaker 1: product to market, that's when the work is more heavy

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Speaker 1: on the proud development and research part of the process,

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Speaker 1: and particularly around thematic investing. Verry, I wouldn't underestimate the

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Speaker 1: amount of resources that you need to bring a thematic

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Speaker 1: e t F to market. Right now, we have over

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Speaker 1: three research analysts located all over the world because, like

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Speaker 1: I mentioned earlier, the wall is changing at the fastest

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Speaker 1: space that we have ever seence, so there are trends

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Speaker 1: coming up constantly. But also in mind that is innovation

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Speaker 1: happening everywhere. So in many cases, some of these very

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Speaker 1: disruptive companies are not in the US, and they may

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Speaker 1: be in China, they maybe in Vietnam, they maybe in

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Speaker 1: South Korea, they may be in Japan. So it's important

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Speaker 1: that you have a very robust team of research analyst

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Speaker 1: that covered all of these companies well Asia, nothing in

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Speaker 1: Europe where you're from. Great question. Great question. I mean,

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Speaker 1: there is definitely also interesting companies in the in the

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Speaker 1: European market, but it is too a lot of the

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Speaker 1: new trends that we are seeing at a commune from

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Speaker 1: some of the largest markets in Asia interesting. When global

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Speaker 1: x creates an e t F, are you also creating

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Speaker 1: the underlying index? Are you working with outside index providers?

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Speaker 1: Tell us a little bit about what that process is like. Again,

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Speaker 1: it depends a little bit on the strategy. So if it's,

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Speaker 1: for example, a strategy tracking ANASTA index or an SMP

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Speaker 1: or an MSCI, typically you leverage an index that is

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Speaker 1: already available through the index problem, I mean, you make

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Speaker 1: a couple of little tweaks to make it more relevant

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Speaker 1: to the context of the exposure that you are trying

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Speaker 1: to to achieve. But in thematic investing and for the

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Speaker 1: most part of the intellectual property that goes into developing

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Speaker 1: the index we do internally with our own research and

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Speaker 1: pro development team because the reality, you know, I'll tell

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Speaker 1: you like a quick anecdote, in two thousand and ten,

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Speaker 1: when we wanted to launch the first it t F,

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Speaker 1: the Global Lithium and Battery Tech ITTF, we actually went

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Speaker 1: through the process of calling all of the index providers

434
00:25:33,800 --> 00:25:36,240
Speaker 1: to see if they wanted to work with us on

435
00:25:36,280 --> 00:25:39,520
Speaker 1: the development of this idea, and pretty much they laughed

436
00:25:39,520 --> 00:25:41,280
Speaker 1: at us, like, what are you guys trying to do?

437
00:25:41,359 --> 00:25:44,760
Speaker 1: Like a lithiumf what is that? So because of that,

438
00:25:44,840 --> 00:25:46,399
Speaker 1: we actually had to pretty much do a lot of

439
00:25:46,440 --> 00:25:49,240
Speaker 1: that heavy lifting in the house, which back in the

440
00:25:49,320 --> 00:25:52,280
Speaker 1: day we saw us a challenge, but where frankly was

441
00:25:52,320 --> 00:25:55,159
Speaker 1: the best thing that ever happened to us because it

442
00:25:55,320 --> 00:26:00,200
Speaker 1: forced us to develop our own product and research ap

443
00:26:00,200 --> 00:26:04,320
Speaker 1: aabilities that right now we're still benefiting from fourteen years later.

444
00:26:04,640 --> 00:26:07,440
Speaker 1: All Right, So you mentioned lithium and battery tech, which

445
00:26:07,480 --> 00:26:11,000
Speaker 1: is about four billion dollars symbol l I T. Let's

446
00:26:11,040 --> 00:26:14,480
Speaker 1: talk about two others that are sort of sustainable investing

447
00:26:14,520 --> 00:26:19,800
Speaker 1: related again, back to the ticker clean water aqua a

448
00:26:19,960 --> 00:26:25,200
Speaker 1: q w A obviously coming from Spain, Agua is that

449
00:26:25,280 --> 00:26:27,120
Speaker 1: I think a lot of Americans might not have thought

450
00:26:27,200 --> 00:26:30,399
Speaker 1: that up on themselves. Um, how is the clean water

451
00:26:30,720 --> 00:26:33,600
Speaker 1: e t F doing and what sort of companies do

452
00:26:33,680 --> 00:26:36,440
Speaker 1: you hold in in a clean water I think it's

453
00:26:36,480 --> 00:26:38,640
Speaker 1: it's one of our newer things and what we're seeing,

454
00:26:38,720 --> 00:26:44,720
Speaker 1: particularly with a clean water or think about a clean tech,

455
00:26:45,119 --> 00:26:48,800
Speaker 1: renewable energy producers. There's a significant shift towards a more

456
00:26:48,880 --> 00:26:52,520
Speaker 1: sustainable world and I think many of these things are

457
00:26:52,720 --> 00:26:56,480
Speaker 1: benefiting from that transition. And clean water is definitely is

458
00:26:56,520 --> 00:27:01,080
Speaker 1: definitely And we've seen massive war supply issues in the

459
00:27:01,160 --> 00:27:05,760
Speaker 1: United States, not just having available water. California is going

460
00:27:05,760 --> 00:27:07,639
Speaker 1: through a drought, a lot of the West is. But

461
00:27:07,760 --> 00:27:10,120
Speaker 1: when you look at what took place in Flint, Michigan,

462
00:27:10,200 --> 00:27:13,680
Speaker 1: and a whole bunch of other cities whose water infrastructure

463
00:27:13,680 --> 00:27:16,880
Speaker 1: has fallen apart, there has to be an immense demand

464
00:27:17,080 --> 00:27:20,720
Speaker 1: for clean water going forward. We have seen already some

465
00:27:20,800 --> 00:27:23,280
Speaker 1: policy coming from the White House in the last you

466
00:27:23,280 --> 00:27:25,960
Speaker 1: know quarter where we do think many of these companies

467
00:27:26,040 --> 00:27:28,879
Speaker 1: are basically dedicated to, like, you know, a process of

468
00:27:28,880 --> 00:27:32,200
Speaker 1: water in more effective ways are definitely gonna be benefiting

469
00:27:32,240 --> 00:27:35,800
Speaker 1: from this trend. And uh, how about wind energy or

470
00:27:35,880 --> 00:27:40,080
Speaker 1: windy w n D Y Uh what sort of companies

471
00:27:40,080 --> 00:27:42,800
Speaker 1: that do you hold in that sort of etes all

472
00:27:42,880 --> 00:27:46,280
Speaker 1: companies that are basically involved in the production of the

473
00:27:46,720 --> 00:27:49,639
Speaker 1: in the production of of wind energy. Are there that

474
00:27:49,680 --> 00:27:53,960
Speaker 1: many public companies in that space? I know, geed stuff

475
00:27:54,080 --> 00:27:56,879
Speaker 1: like I'd be hard pressed the named forty companies in

476
00:27:56,880 --> 00:27:59,280
Speaker 1: that space. I mean, obviously it's it goes back to

477
00:27:59,320 --> 00:28:02,040
Speaker 1: the process that mentioned before of like looking at conviction,

478
00:28:02,160 --> 00:28:05,159
Speaker 1: looking at you know, investability and type RI and that

479
00:28:05,320 --> 00:28:09,440
Speaker 1: second component is extremely important. The thing is, I guess

480
00:28:09,480 --> 00:28:12,199
Speaker 1: a good reminder there, Berry is that when we think

481
00:28:12,240 --> 00:28:14,840
Speaker 1: about our thematic its like this, some of the names

482
00:28:14,880 --> 00:28:19,159
Speaker 1: that we just we just discussed, like clean water or

483
00:28:19,240 --> 00:28:23,600
Speaker 1: wind energy, our thematic dfs are global in nature. So

484
00:28:24,000 --> 00:28:25,920
Speaker 1: we're not just looking at the U S companies. We're

485
00:28:25,920 --> 00:28:28,719
Speaker 1: looking at the entire worlds. From that standpoint, there are

486
00:28:28,720 --> 00:28:33,200
Speaker 1: actually many more companies that you may think and initially

487
00:28:33,400 --> 00:28:35,840
Speaker 1: so so I know, there are some British companies and

488
00:28:35,920 --> 00:28:41,360
Speaker 1: wind energy, there are some Dutch and Norwegian companies. So

489
00:28:41,440 --> 00:28:43,400
Speaker 1: this is a global it t F and it's filled

490
00:28:43,440 --> 00:28:46,080
Speaker 1: with anybody in that space that that you think is

491
00:28:46,080 --> 00:28:48,120
Speaker 1: in that correct you were talking about, you know before.

492
00:28:48,200 --> 00:28:51,200
Speaker 1: For example, there's a good Spanish company called Acton's part

493
00:28:51,200 --> 00:28:54,240
Speaker 1: of that of that index, and you know you're speaking

494
00:28:54,280 --> 00:28:58,800
Speaker 1: this energy transition component Berry is becoming more and more

495
00:28:58,880 --> 00:29:01,040
Speaker 1: popular in many of the commerce sations that we are

496
00:29:01,080 --> 00:29:04,200
Speaker 1: having more recently. One of the ets that we're having

497
00:29:04,360 --> 00:29:09,040
Speaker 1: lots of conversations about is our uranium et F, which

498
00:29:09,080 --> 00:29:12,960
Speaker 1: is also one of our largest symbol. You are a

499
00:29:14,040 --> 00:29:16,920
Speaker 1: and it's become extremely a top of mind for many

500
00:29:16,960 --> 00:29:19,160
Speaker 1: of our clients, not just in the US, but quite

501
00:29:19,160 --> 00:29:24,520
Speaker 1: frankly all over the world because of the energy crisis

502
00:29:24,560 --> 00:29:27,200
Speaker 1: that we are seeing in Europe as a direct result

503
00:29:27,360 --> 00:29:30,920
Speaker 1: of the conflict between Ukraine and Rush. I think more

504
00:29:30,920 --> 00:29:34,080
Speaker 1: and more investors and more and more market participants are

505
00:29:34,240 --> 00:29:38,600
Speaker 1: realizing that there is a very significant need for greater

506
00:29:38,960 --> 00:29:44,479
Speaker 1: energy diversification, and nuclear energy is becoming, you know, widely

507
00:29:44,520 --> 00:29:47,680
Speaker 1: considered as a very emerging as a very viable solution

508
00:29:47,680 --> 00:29:51,320
Speaker 1: in that space because of of the lower cast, the reliability,

509
00:29:51,480 --> 00:29:54,240
Speaker 1: and quite frankly, because it's it's clean from a greenhouse

510
00:29:54,560 --> 00:29:57,360
Speaker 1: emissions and stand on. And that's why there's no surprise

511
00:29:57,400 --> 00:29:59,960
Speaker 1: that I like right now over the fifty nuclear plans

512
00:30:00,400 --> 00:30:03,600
Speaker 1: being built in nineteen different countries. Really, I know, France

513
00:30:03,640 --> 00:30:06,440
Speaker 1: gets more than half of their electrical power from nukes,

514
00:30:06,520 --> 00:30:08,920
Speaker 1: and the US used to be ten or fifteen percent,

515
00:30:09,360 --> 00:30:11,840
Speaker 1: but a lot of those have been mothballed. Are We're

516
00:30:11,840 --> 00:30:16,560
Speaker 1: going to see a surge of new nuclear powered electrical

517
00:30:16,560 --> 00:30:21,400
Speaker 1: generation over the next decade. In my opinion, yes, absolutely so.

518
00:30:21,480 --> 00:30:23,760
Speaker 1: Many of these and nuclear plants that are being built

519
00:30:23,920 --> 00:30:25,800
Speaker 1: right now are mostly in the emerging markets. You can

520
00:30:25,880 --> 00:30:29,880
Speaker 1: think of South Korea, India, China, but we are seeing

521
00:30:29,960 --> 00:30:35,920
Speaker 1: that shift already in other markets, specifically Europe that was

522
00:30:36,000 --> 00:30:38,920
Speaker 1: kind of like shifting away from nuclear energy for many years.

523
00:30:39,040 --> 00:30:41,560
Speaker 1: I think right now they are rethinking that approach to

524
00:30:41,680 --> 00:30:44,440
Speaker 1: their energy mix again, as I did have consequence of

525
00:30:44,520 --> 00:30:46,840
Speaker 1: some of the challenges that they are facing with a

526
00:30:46,880 --> 00:30:50,200
Speaker 1: conflict between Russia and Ukraine. Right when your biggest supplier

527
00:30:50,200 --> 00:30:53,760
Speaker 1: of natural gas suddenly becomes hostile, you start looking at

528
00:30:53,800 --> 00:30:57,720
Speaker 1: other energy sources again. When I think of nuclear power,

529
00:30:57,800 --> 00:31:01,880
Speaker 1: I think of traditional fission plants, but I know there's

530
00:31:01,880 --> 00:31:07,360
Speaker 1: been three big innovations recently. One has been the micro plants.

531
00:31:07,400 --> 00:31:09,120
Speaker 1: Instead of having a giant plant, you can have a

532
00:31:09,160 --> 00:31:14,160
Speaker 1: small plant. The second are things like thorium powered plants,

533
00:31:14,200 --> 00:31:17,240
Speaker 1: and then there are the fusion plants. What sort of

534
00:31:17,240 --> 00:31:20,800
Speaker 1: innovation are we seeing in nuclear power production? You just

535
00:31:20,840 --> 00:31:23,360
Speaker 1: don't read about it or hear about it in very

536
00:31:23,360 --> 00:31:25,719
Speaker 1: many places. I think the number one that comes up,

537
00:31:25,800 --> 00:31:30,440
Speaker 1: quite frankly is safety. The technology around making these nuclear

538
00:31:30,480 --> 00:31:34,120
Speaker 1: plants a lot safer than maybe was the case in

539
00:31:34,160 --> 00:31:36,920
Speaker 1: the past, because I think, like a nuclear energy and

540
00:31:37,200 --> 00:31:40,640
Speaker 1: uranium has historically had a bad reputation because some of

541
00:31:40,680 --> 00:31:44,200
Speaker 1: the accidents. You've had accidents, you have storage issues, you

542
00:31:44,240 --> 00:31:47,040
Speaker 1: have waste disposal issues. How do you deal with them today?

543
00:31:47,200 --> 00:31:50,040
Speaker 1: But based on you know, the conversation that we're having

544
00:31:50,080 --> 00:31:54,000
Speaker 1: with research analyze and practitioners in this space, the technology

545
00:31:54,000 --> 00:31:56,840
Speaker 1: around the development of nuclear energy is a lot safer

546
00:31:56,880 --> 00:31:59,080
Speaker 1: than it's ever been. So that's why we expect more

547
00:31:59,120 --> 00:32:02,240
Speaker 1: and more kind increase adopted nuclear energy. Yes, have primary

548
00:32:02,280 --> 00:32:05,760
Speaker 1: source of energy. I recall post Fukushima there was a

549
00:32:05,760 --> 00:32:09,680
Speaker 1: company that I think lux Capital was the VC behind it,

550
00:32:10,000 --> 00:32:13,160
Speaker 1: that came up with a way to take nuclear waste

551
00:32:13,200 --> 00:32:17,800
Speaker 1: and embedded in certain types of glass or plastic rods

552
00:32:18,000 --> 00:32:22,760
Speaker 1: and you just didn't have the same radioactivity. So that

553
00:32:22,800 --> 00:32:26,000
Speaker 1: was the way they dealt with it. Anyway, it's fascinating

554
00:32:26,040 --> 00:32:30,080
Speaker 1: that that is such a under the radar, fast growing

555
00:32:30,720 --> 00:32:34,040
Speaker 1: space that I think the average investor is wholly unaware of.

556
00:32:34,720 --> 00:32:36,200
Speaker 1: I mean, the data is that I think we've seen

557
00:32:36,320 --> 00:32:39,080
Speaker 1: that fund. I mean speaking from memory very but I

558
00:32:39,120 --> 00:32:44,120
Speaker 1: think it's roughly six million dollar assets in that DF.

559
00:32:44,240 --> 00:32:47,800
Speaker 1: It on quite fascinating. So let's talk a little bit

560
00:32:47,840 --> 00:32:54,440
Speaker 1: about some of the opportunistic thematic ETFs we've seen in

561
00:32:54,760 --> 00:32:59,840
Speaker 1: the recent h environment. We've seen inflation hedges, inverse fund,

562
00:33:00,400 --> 00:33:05,920
Speaker 1: interest rate funds. What are the challenges for being opportunistic when,

563
00:33:05,960 --> 00:33:09,280
Speaker 1: as you said, you're looking out a decade or two

564
00:33:09,360 --> 00:33:12,800
Speaker 1: on on some of these ideas. I mean, one of

565
00:33:12,880 --> 00:33:16,200
Speaker 1: the challenges I guess points of clarification when we talk

566
00:33:16,200 --> 00:33:20,200
Speaker 1: around thematic investing is that, in a way, very thematic

567
00:33:20,360 --> 00:33:24,760
Speaker 1: has almost become a catch all category. So when market

568
00:33:24,800 --> 00:33:28,760
Speaker 1: participants or investors don't know exactly how to categorize and

569
00:33:28,880 --> 00:33:33,000
Speaker 1: E t F, they automatically refer to id F as

570
00:33:33,120 --> 00:33:36,000
Speaker 1: um as a theematic idea. But we do think and

571
00:33:36,960 --> 00:33:40,840
Speaker 1: theematic investing is a very robust investment approach that consists

572
00:33:40,920 --> 00:33:45,480
Speaker 1: on two very simple but powerful steps. One is, we

573
00:33:45,560 --> 00:33:50,560
Speaker 1: look at very powerful, disruptive macro level trends that we

574
00:33:50,640 --> 00:33:53,600
Speaker 1: think will shave the economy over the coming decades. And

575
00:33:53,680 --> 00:33:56,040
Speaker 1: so we look at the companies that has tend to

576
00:33:56,120 --> 00:34:00,240
Speaker 1: benefit from the materialization of those trends. And that's a

577
00:34:00,360 --> 00:34:03,640
Speaker 1: very very clear definition. So many of these ideas like

578
00:34:03,680 --> 00:34:07,080
Speaker 1: inflation hege or interest rate hedge, they couldn't really fall

579
00:34:07,160 --> 00:34:11,080
Speaker 1: within our definition of thematic investing because they are cyclical

580
00:34:11,200 --> 00:34:13,680
Speaker 1: in nature. They will be like a reversal to them.

581
00:34:13,680 --> 00:34:15,120
Speaker 1: And and and I think it's very very important that we

582
00:34:15,160 --> 00:34:18,240
Speaker 1: think of thematic investing in as a as a forward

583
00:34:18,280 --> 00:34:21,640
Speaker 1: looking investment approach. And I think there is some confusion

584
00:34:21,760 --> 00:34:24,960
Speaker 1: in the marketplace from that standpoint. By going back to

585
00:34:25,000 --> 00:34:28,680
Speaker 1: your point about like kind of being opportunistic and I'm

586
00:34:28,680 --> 00:34:31,839
Speaker 1: being able to react to market conditions. Typically you can

587
00:34:31,920 --> 00:34:35,960
Speaker 1: expect for any DF issue to take anywhere between six

588
00:34:36,040 --> 00:34:38,839
Speaker 1: to nine months to launch. Annuity have to market six

589
00:34:38,920 --> 00:34:41,840
Speaker 1: to nine months. Wow, that's actually faster than I thought.

590
00:34:42,280 --> 00:34:44,120
Speaker 1: Go back a couple of years. You want to create

591
00:34:44,160 --> 00:34:46,800
Speaker 1: a mutual fund, you used to take a year or

592
00:34:46,840 --> 00:34:49,560
Speaker 1: two to get everything had to be approved. And now

593
00:34:50,000 --> 00:34:53,480
Speaker 1: as long as you have everything lined up, the process

594
00:34:53,480 --> 00:34:55,920
Speaker 1: seems to be pretty streamlined. Yeah, I think so. I mean,

595
00:34:55,920 --> 00:34:57,360
Speaker 1: I think if you start a form at scrutch and

596
00:34:57,400 --> 00:34:59,600
Speaker 1: you have to setubt your own trust and look for

597
00:34:59,640 --> 00:35:03,640
Speaker 1: a new new independent board and applied to the SEC

598
00:35:03,920 --> 00:35:06,799
Speaker 1: for the proper approvals, then it may take a little

599
00:35:06,800 --> 00:35:08,960
Speaker 1: bit longer than that. But for a business that is

600
00:35:09,040 --> 00:35:11,520
Speaker 1: already up and round, where you already have your trust,

601
00:35:12,040 --> 00:35:14,560
Speaker 1: you already have your registered investoral advice, or you have

602
00:35:14,719 --> 00:35:18,640
Speaker 1: your board, is a much more extremeline process that maybe

603
00:35:18,680 --> 00:35:21,120
Speaker 1: it was a few years ago. You know, a lot

604
00:35:21,160 --> 00:35:25,640
Speaker 1: of the thematics we've seen they run seventy even hundred

605
00:35:25,640 --> 00:35:30,360
Speaker 1: basis points global X averages between fifty and sixty. How

606
00:35:30,360 --> 00:35:34,640
Speaker 1: have you managed to keep your fees competitive versus some

607
00:35:34,719 --> 00:35:37,560
Speaker 1: of the other thematic e t F funds. I think

608
00:35:37,719 --> 00:35:41,480
Speaker 1: it's all relative. I don't think fees are high or

609
00:35:41,719 --> 00:35:46,000
Speaker 1: low in absolute terms, is rightly right. It's it's a

610
00:35:46,040 --> 00:35:49,560
Speaker 1: function of the complexity of the product and the value

611
00:35:49,560 --> 00:35:52,600
Speaker 1: that you get from the e d F sponsor in

612
00:35:52,600 --> 00:35:56,920
Speaker 1: our case for example, like think about SPF for the

613
00:35:57,040 --> 00:36:00,560
Speaker 1: three or four basis points for free practice exactly because

614
00:36:00,560 --> 00:36:03,239
Speaker 1: in that particular case, you know, developing an index like

615
00:36:03,280 --> 00:36:06,080
Speaker 1: that is pretty straightforward. You can pull some data from

616
00:36:06,080 --> 00:36:09,439
Speaker 1: your Bloomberg terminal and then you are pretty much good

617
00:36:09,480 --> 00:36:12,400
Speaker 1: to go. But when you think of thematic it T s,

618
00:36:12,440 --> 00:36:16,319
Speaker 1: for example, it's a much more complicated process because you

619
00:36:16,360 --> 00:36:19,000
Speaker 1: have to make lots of decisions. You know, developing a

620
00:36:19,040 --> 00:36:21,799
Speaker 1: thematic ITTs is a pretty complex process. You have to

621
00:36:21,920 --> 00:36:25,520
Speaker 1: first identify the theme. Then you have to identify the

622
00:36:25,680 --> 00:36:30,120
Speaker 1: different categories within that theme and make important decisions around

623
00:36:30,160 --> 00:36:37,080
Speaker 1: liquidity market cup wearing versus equal weight liquidity filters. And remember,

624
00:36:37,080 --> 00:36:40,799
Speaker 1: for thematic investing, our approach is global. So we look

625
00:36:40,840 --> 00:36:44,040
Speaker 1: at any company in the world that could have exposure

626
00:36:44,120 --> 00:36:48,279
Speaker 1: to cybersecurity, for example for cloud computing, and that requires

627
00:36:48,800 --> 00:36:52,160
Speaker 1: a fair amount of manpower to bring that product to market.

628
00:36:52,239 --> 00:36:54,160
Speaker 1: And on top of our we use our research, our

629
00:36:54,680 --> 00:36:58,439
Speaker 1: model portfolio business to really explain to our clients how

630
00:36:58,520 --> 00:37:00,839
Speaker 1: to invest in those it so I think the value

631
00:37:00,840 --> 00:37:03,480
Speaker 1: that we provide to our clients is very significant. So

632
00:37:03,520 --> 00:37:07,040
Speaker 1: you mentioned market cap waiting versus et F waiting. Tell

633
00:37:07,120 --> 00:37:10,120
Speaker 1: us about the thought process. How do you decide one

634
00:37:10,120 --> 00:37:13,560
Speaker 1: way or another? What is global access preference? In most

635
00:37:13,560 --> 00:37:17,000
Speaker 1: cases we follow what we call it modified market cap

636
00:37:17,320 --> 00:37:20,480
Speaker 1: wearing approach, particularly around thematic investing. We do think that's

637
00:37:20,520 --> 00:37:24,160
Speaker 1: the optimal approach for for a couple of reasons. So

638
00:37:24,600 --> 00:37:28,720
Speaker 1: first and from our standpoint, you want to for this theematics.

639
00:37:28,840 --> 00:37:31,520
Speaker 1: These are younger industries where you still don't really know

640
00:37:31,600 --> 00:37:34,319
Speaker 1: who the winners and losers will be right. So you

641
00:37:34,360 --> 00:37:38,200
Speaker 1: want to have as much exposure to the theme as

642
00:37:38,239 --> 00:37:41,759
Speaker 1: a whole rioland trying to pick the winners or or

643
00:37:41,840 --> 00:37:43,960
Speaker 1: the losers. And we do think like a modified market

644
00:37:44,000 --> 00:37:47,400
Speaker 1: cap approach is the most relevant. When you say modified,

645
00:37:47,600 --> 00:37:51,360
Speaker 1: so it's not straight market cap. There are probably ceilings

646
00:37:51,360 --> 00:37:56,160
Speaker 1: and floors exactly. So basically bigger companies are a bigger

647
00:37:56,280 --> 00:38:00,200
Speaker 1: part of the index, but we have caps of like

648
00:38:00,320 --> 00:38:03,200
Speaker 1: eight percent, two percent or two alve percent of the

649
00:38:03,280 --> 00:38:06,399
Speaker 1: company based on the index. And the classical example here

650
00:38:06,400 --> 00:38:09,600
Speaker 1: to bury is, for example, our e commerce ETF. We

651
00:38:09,719 --> 00:38:12,719
Speaker 1: fall follow like a market approach, but you don't want

652
00:38:12,760 --> 00:38:16,160
Speaker 1: to be in a situation in which Amazon becomes forty

653
00:38:16,280 --> 00:38:19,080
Speaker 1: five percent of the index. That's why we have the

654
00:38:19,520 --> 00:38:23,400
Speaker 1: weight of each company anyway between eight percent to twelve

655
00:38:23,480 --> 00:38:28,080
Speaker 1: percent as a way to mitigate that idiosyncratic risk. What

656
00:38:28,120 --> 00:38:31,040
Speaker 1: are your thoughts on some of the inverse funds that

657
00:38:31,080 --> 00:38:34,000
Speaker 1: are out there. Last year we saw the introduction of

658
00:38:34,040 --> 00:38:38,279
Speaker 1: the inverse arc. This year we saw the inverse Streamer.

659
00:38:38,719 --> 00:38:42,920
Speaker 1: There's some really wacky e t F ideas. Do you

660
00:38:42,960 --> 00:38:46,120
Speaker 1: guys ever consider that or you just look at those

661
00:38:46,160 --> 00:38:49,920
Speaker 1: as you know, novelties not really, that's not part of

662
00:38:49,960 --> 00:38:54,280
Speaker 1: our our business very I think like the large majority

663
00:38:54,280 --> 00:38:58,640
Speaker 1: of our clients are long term oriented in investors, and

664
00:38:58,640 --> 00:39:00,759
Speaker 1: that's what we typically try to focus on. I mean,

665
00:39:00,760 --> 00:39:03,640
Speaker 1: I do think there is a market for leverage and

666
00:39:03,800 --> 00:39:06,760
Speaker 1: inverse a t s out there, but from my way standpoint,

667
00:39:06,800 --> 00:39:09,200
Speaker 1: we try to stay away from those types of strategies

668
00:39:09,200 --> 00:39:12,719
Speaker 1: because we don't think they incentivize the right type of

669
00:39:12,880 --> 00:39:16,600
Speaker 1: investor behavior. It's it's more speculative than it is investment. Yeah,

670
00:39:16,600 --> 00:39:20,320
Speaker 1: I think it's like obviously that some sophisticated institutional clients

671
00:39:20,360 --> 00:39:22,400
Speaker 1: that they really know what they are doing and may

672
00:39:22,480 --> 00:39:26,440
Speaker 1: they use those et f s as very useful trading tools.

673
00:39:26,480 --> 00:39:29,480
Speaker 1: But I think anything that can potentially have can be

674
00:39:29,560 --> 00:39:33,480
Speaker 1: accessible by retail clients. I think we have a responsibility

675
00:39:33,480 --> 00:39:35,719
Speaker 1: as an industry to be very careful about that makes

676
00:39:35,719 --> 00:39:41,440
Speaker 1: a lot of sense. So let's talk about managing through volatility.

677
00:39:41,560 --> 00:39:43,920
Speaker 1: Was a huge year. We were upteen percent and I

678
00:39:43,920 --> 00:39:46,640
Speaker 1: think it was like up sixty eight percent from the

679
00:39:46,680 --> 00:39:51,680
Speaker 1: pandemic lows one, we're up twenty eight percent. Then this

680
00:39:51,800 --> 00:39:56,839
Speaker 1: year where everything falls out of bed market down, bonds down,

681
00:39:58,239 --> 00:40:02,400
Speaker 1: how do you manage through volatility like we've seen in

682
00:40:02,520 --> 00:40:06,160
Speaker 1: two you know, great question. I mean, without a doubt,

683
00:40:06,400 --> 00:40:11,640
Speaker 1: has been a very challenging market environment. We've had geopolitical issues,

684
00:40:12,239 --> 00:40:14,160
Speaker 1: the highest level of inflation that we have seen in

685
00:40:14,239 --> 00:40:18,960
Speaker 1: the US in forty years, and still supply chain issues

686
00:40:19,160 --> 00:40:21,520
Speaker 1: due to to COVID nineteen. So it's been a very

687
00:40:21,640 --> 00:40:26,280
Speaker 1: challenging year. But you know, our business continues to do well.

688
00:40:26,440 --> 00:40:29,200
Speaker 1: I mean, we've seen this year roughly between three and

689
00:40:29,280 --> 00:40:32,439
Speaker 1: four billion dollars in a new assets, and we're having

690
00:40:32,640 --> 00:40:36,640
Speaker 1: very good conversations with clients that I think at corerent

691
00:40:36,719 --> 00:40:40,520
Speaker 1: valuation levels, they remain very interesting in the market and

692
00:40:40,560 --> 00:40:43,719
Speaker 1: they see some some opportunities. But to be done with

693
00:40:43,760 --> 00:40:49,120
Speaker 1: you bury, from our standpoint, we don't really make any

694
00:40:49,160 --> 00:40:53,360
Speaker 1: material changes in how we think about the business because

695
00:40:53,400 --> 00:40:56,120
Speaker 1: of of the market environment. You know, we we had

696
00:40:56,120 --> 00:40:58,560
Speaker 1: a really good twenty twenty. We had a really good

697
00:40:58,560 --> 00:41:01,759
Speaker 1: twenty twenty one in terms of influence. This year has

698
00:41:01,800 --> 00:41:04,040
Speaker 1: not been as good in terms of influence. But from

699
00:41:04,040 --> 00:41:07,600
Speaker 1: my standpoint, i'd been a phenomenal year because we continue

700
00:41:07,640 --> 00:41:11,160
Speaker 1: to execute on our strategy. We continue to large interesting powers,

701
00:41:11,400 --> 00:41:13,200
Speaker 1: we continue to take out of our clients, and I

702
00:41:13,239 --> 00:41:15,719
Speaker 1: think over the long run. That's what really matters. If

703
00:41:15,760 --> 00:41:19,400
Speaker 1: you can execute and attract clients and keep clients in

704
00:41:19,440 --> 00:41:22,560
Speaker 1: a year like this, you're doing great. It's hard to

705
00:41:22,680 --> 00:41:25,960
Speaker 1: argue with this sort of baptism of fire. I think

706
00:41:25,960 --> 00:41:29,359
Speaker 1: I think a lot of people were genuinely surprised by

707
00:41:29,440 --> 00:41:34,120
Speaker 1: two wait markets go down. I thought they only went up.

708
00:41:34,560 --> 00:41:37,719
Speaker 1: It's been eye opening for a lot of the younger traders,

709
00:41:37,719 --> 00:41:40,520
Speaker 1: younger investors who I know you go back to since

710
00:41:40,560 --> 00:41:43,719
Speaker 1: two thousand and nine, they've only seen up markets a

711
00:41:43,800 --> 00:41:45,759
Speaker 1: hundred percent. And I think, and I actually do have

712
00:41:45,960 --> 00:41:49,520
Speaker 1: that very conversation with the junior members of our team,

713
00:41:49,560 --> 00:41:52,040
Speaker 1: because if you're just starting the industry four or five

714
00:41:52,120 --> 00:41:54,680
Speaker 1: years ago, you think the markets only go up, right,

715
00:41:54,680 --> 00:41:56,719
Speaker 1: And I think it's is when you've gone through their

716
00:41:56,760 --> 00:41:59,600
Speaker 1: financial crisis in two thousand eight when I was working

717
00:42:00,200 --> 00:42:02,719
Speaker 1: with Morgan Stanley or or even later on, you know,

718
00:42:02,760 --> 00:42:08,680
Speaker 1: December fourth quarter was down, was a big drop starting one.

719
00:42:08,719 --> 00:42:10,640
Speaker 1: We had just been acquired by Media Asset, and there

720
00:42:10,680 --> 00:42:12,440
Speaker 1: was a lot of like I see the performance of

721
00:42:12,440 --> 00:42:15,520
Speaker 1: our business, and it was a challenging a quarter or

722
00:42:15,680 --> 00:42:19,680
Speaker 1: March of twenty with COVID COVID nineteen. But I think

723
00:42:19,719 --> 00:42:23,680
Speaker 1: when you've done this long enough. Quite frankly, that doesn't

724
00:42:23,760 --> 00:42:27,040
Speaker 1: really matter in the long termship. I always told the team,

725
00:42:27,320 --> 00:42:30,680
Speaker 1: they's do the right things with the right team at

726
00:42:30,760 --> 00:42:33,440
Speaker 1: the right time, and let's focus on the long term,

727
00:42:33,560 --> 00:42:35,880
Speaker 1: and if we do that, we'll just be fine. You know,

728
00:42:35,960 --> 00:42:39,400
Speaker 1: I haven't asked you about China. You have a handful

729
00:42:39,440 --> 00:42:43,600
Speaker 1: of smaller funds that have been China focused. What's it

730
00:42:43,719 --> 00:42:49,040
Speaker 1: like investing there, especially with the local versus overseas investors.

731
00:42:49,120 --> 00:42:54,520
Speaker 1: It seems like they've been an unusually challenging region to

732
00:42:54,600 --> 00:42:57,000
Speaker 1: put money to work in. I mean, of course, of

733
00:42:57,040 --> 00:43:00,000
Speaker 1: course we've seen a lot of volatility coming out of China,

734
00:43:00,280 --> 00:43:03,560
Speaker 1: but very We have a ton of experience dealing with

735
00:43:03,560 --> 00:43:06,080
Speaker 1: with China, and one of our first it s was

736
00:43:06,120 --> 00:43:09,400
Speaker 1: our China Consumer it TF that we launched in two

737
00:43:09,440 --> 00:43:14,240
Speaker 1: thousand nine, and then we launch in the Scember of eighteen,

738
00:43:14,719 --> 00:43:18,960
Speaker 1: we launch a full suite of China sector ETFs tracking

739
00:43:19,200 --> 00:43:22,200
Speaker 1: MSCI in this and it was a direct reaction to

740
00:43:22,360 --> 00:43:25,239
Speaker 1: client the man I think and enough the day is

741
00:43:25,280 --> 00:43:27,920
Speaker 1: the second largest economy in the world, and it's an

742
00:43:27,920 --> 00:43:32,160
Speaker 1: increasingly diversified economy. So we were getting questions from clients

743
00:43:32,160 --> 00:43:34,879
Speaker 1: that they wanted to play China, but they didn't want

744
00:43:34,880 --> 00:43:38,279
Speaker 1: to just buy the China large crap product. They wanted

745
00:43:38,320 --> 00:43:43,040
Speaker 1: to invest in China healthcare, or China technology or China energy.

746
00:43:43,120 --> 00:43:44,880
Speaker 1: So we came to market with what I think is

747
00:43:44,920 --> 00:43:48,600
Speaker 1: that only a family of China sector E T s

748
00:43:48,840 --> 00:43:50,839
Speaker 1: offers all of the A T s and it's been

749
00:43:50,920 --> 00:43:53,680
Speaker 1: challenging at times very but going back to the point

750
00:43:53,719 --> 00:43:59,800
Speaker 1: of proud development, if you are following a robust product

751
00:44:00,000 --> 00:44:05,400
Speaker 1: development process, you should not experience any challenges in dealing

752
00:44:05,440 --> 00:44:07,480
Speaker 1: with these markets for a number of reasons, because it's

753
00:44:07,600 --> 00:44:10,920
Speaker 1: part of the index methodology that you are accounting for

754
00:44:11,000 --> 00:44:13,840
Speaker 1: some of these potential challenges. For example, you include filters

755
00:44:13,920 --> 00:44:19,160
Speaker 1: around average daily trading volume for liquidity for liquidity, or

756
00:44:19,160 --> 00:44:21,719
Speaker 1: for example, you don't include companies that have less than

757
00:44:21,719 --> 00:44:24,279
Speaker 1: a hundred million dollars in market caps, so if a

758
00:44:24,400 --> 00:44:28,719
Speaker 1: company drops below that level, is automatically removed from the

759
00:44:28,760 --> 00:44:32,520
Speaker 1: index at the next rebalance, and by doing so, you

760
00:44:32,600 --> 00:44:35,799
Speaker 1: eliminate the challenge of having to trade in some of

761
00:44:35,800 --> 00:44:40,200
Speaker 1: those liquid names. And again, we've been trading our China

762
00:44:40,360 --> 00:44:44,680
Speaker 1: consumer it TF for almost thirteen years and we haven't

763
00:44:44,680 --> 00:44:48,040
Speaker 1: faced any significant challenges because you can. Our portfolio management

764
00:44:48,040 --> 00:44:51,120
Speaker 1: team and our product team have plenty of experience dealing

765
00:44:51,200 --> 00:44:55,960
Speaker 1: with these markets. So how much marketing goes into rolling

766
00:44:56,000 --> 00:44:58,520
Speaker 1: out a new e t F? You know when we

767
00:44:58,880 --> 00:45:01,120
Speaker 1: see every day I see a list of new ETFs

768
00:45:01,200 --> 00:45:04,120
Speaker 1: that come out every week, and some of them are

769
00:45:04,160 --> 00:45:07,240
Speaker 1: always kind of surprise me. I don't understand why anybody

770
00:45:07,320 --> 00:45:09,759
Speaker 1: is rolling that out. And every now and then something

771
00:45:09,760 --> 00:45:12,200
Speaker 1: will come out and like, oh, clean water, of course

772
00:45:12,239 --> 00:45:15,600
Speaker 1: that makes perfect sense. How do you market this to

773
00:45:15,680 --> 00:45:18,560
Speaker 1: the advisor community? How do you market this to the

774
00:45:18,640 --> 00:45:22,080
Speaker 1: investing public? Great question? I mean, I think without a

775
00:45:22,120 --> 00:45:25,400
Speaker 1: doubt in the a t F industrting marketing is extremely

776
00:45:25,400 --> 00:45:27,840
Speaker 1: important particle for a company like Global ex that is

777
00:45:27,920 --> 00:45:30,800
Speaker 1: still like an up and coming at F player, because

778
00:45:31,520 --> 00:45:35,919
Speaker 1: it's important. Brand awareness is critical. People will not come

779
00:45:35,960 --> 00:45:38,160
Speaker 1: to buy our it t F s if they don't

780
00:45:38,200 --> 00:45:41,759
Speaker 1: know that Global ETFs exists. So so we have been

781
00:45:42,600 --> 00:45:45,960
Speaker 1: investing in marketing for several years purely from a brand

782
00:45:46,160 --> 00:45:51,240
Speaker 1: awareness standpoint. But that aside. The way we actually market

783
00:45:51,360 --> 00:45:55,160
Speaker 1: our ITTs for retail clients and financial advisors is mostly

784
00:45:55,239 --> 00:45:59,120
Speaker 1: through our research, right, I think ever since we started

785
00:45:59,160 --> 00:46:01,720
Speaker 1: the business, because we were very, very small. We realized

786
00:46:01,719 --> 00:46:03,840
Speaker 1: that we needed to give ourselves the credibility in the

787
00:46:03,880 --> 00:46:06,360
Speaker 1: space that we didn't have because of our size, and

788
00:46:06,560 --> 00:46:09,279
Speaker 1: we did that through research. So we have what, in

789
00:46:09,400 --> 00:46:12,560
Speaker 1: my opinion, of course, very I'm biased, but I think

790
00:46:12,600 --> 00:46:16,400
Speaker 1: we have the most robust research platform in the A

791
00:46:16,480 --> 00:46:19,759
Speaker 1: t F industry, and I think our clients appreciate that

792
00:46:19,840 --> 00:46:22,680
Speaker 1: because when they invest in a global e CDF, they're

793
00:46:22,719 --> 00:46:25,879
Speaker 1: not just buying uh an E t F products. There

794
00:46:26,040 --> 00:46:28,359
Speaker 1: they have access to all research analysts, they can come

795
00:46:28,360 --> 00:46:30,840
Speaker 1: to our website and pretty much on a daily basis,

796
00:46:31,360 --> 00:46:35,440
Speaker 1: we are providing content to our clients so they can

797
00:46:35,560 --> 00:46:38,799
Speaker 1: really understand the dynamics behind the products in which they

798
00:46:38,840 --> 00:46:42,279
Speaker 1: are investing, and that's very powerful. So I know, you

799
00:46:42,440 --> 00:46:45,759
Speaker 1: obviously think thematics have a lot of room to grow.

800
00:46:47,000 --> 00:46:50,359
Speaker 1: What sort of directions do you think thematic ETFs are

801
00:46:50,400 --> 00:46:53,640
Speaker 1: going to head into. What's next for the E t

802
00:46:53,760 --> 00:46:56,200
Speaker 1: F space? I mean, I think in terms of going

803
00:46:56,280 --> 00:46:59,759
Speaker 1: back to the common time made earlier, very innovations just

804
00:47:00,040 --> 00:47:02,879
Speaker 1: happening anywhere in the world and at the fastest space

805
00:47:02,920 --> 00:47:04,839
Speaker 1: that we have ever seen in history. So it will

806
00:47:04,840 --> 00:47:07,719
Speaker 1: be surprised, how you know, we have right now there

807
00:47:07,800 --> 00:47:10,239
Speaker 1: is six thematic it as well. There is no shortage

808
00:47:10,400 --> 00:47:13,640
Speaker 1: of ideas, and there are lots of different areas in

809
00:47:13,719 --> 00:47:17,120
Speaker 1: which we're looking as you can think things like quantum computing.

810
00:47:17,440 --> 00:47:20,320
Speaker 1: There is a lot of activity in the detailed assets

811
00:47:20,440 --> 00:47:22,400
Speaker 1: spacemen though right now there is a lot of like

812
00:47:22,520 --> 00:47:25,600
Speaker 1: noise in the market around that particular thing. But we

813
00:47:25,680 --> 00:47:28,440
Speaker 1: continue to see plenty of opportunity. And again it's not

814
00:47:28,600 --> 00:47:32,399
Speaker 1: just a US phenomenon. We've seen this growth in other

815
00:47:32,520 --> 00:47:34,440
Speaker 1: markets around the world. I mean just in the US.

816
00:47:34,760 --> 00:47:38,480
Speaker 1: If you look at assets in thematic ITFS five years ago,

817
00:47:38,960 --> 00:47:41,719
Speaker 1: the number was roughly five billion dollars and at the

818
00:47:41,800 --> 00:47:45,280
Speaker 1: end of one we're talking about a hundred and twenty

819
00:47:45,360 --> 00:47:49,000
Speaker 1: billion dollars in a um very significant pattern, kind of

820
00:47:49,160 --> 00:47:52,200
Speaker 1: out of Europe as well. So take us through the process. Somebody,

821
00:47:52,320 --> 00:47:55,080
Speaker 1: one of the researchers comes to you, Louise, I have

822
00:47:55,200 --> 00:48:00,200
Speaker 1: this great idea for thematic investment it's X. What is

823
00:48:00,239 --> 00:48:04,800
Speaker 1: the process like from turning that idea into an actual

824
00:48:05,120 --> 00:48:08,520
Speaker 1: E t F. So the first thing is we challenge

825
00:48:08,560 --> 00:48:11,839
Speaker 1: ourselves does it DA makes sense? So let me use

826
00:48:12,280 --> 00:48:15,120
Speaker 1: an example. Let's say electric vehicles, which obviously is an

827
00:48:15,160 --> 00:48:17,360
Speaker 1: idea that we already have. But let's say it's a

828
00:48:17,440 --> 00:48:22,280
Speaker 1: symbol on that d R I V drive drive hopefully

829
00:48:22,400 --> 00:48:24,879
Speaker 1: like that ticket to Yeah, no, it's very I picked

830
00:48:24,920 --> 00:48:28,239
Speaker 1: that one. So that's quite particular, particularly proud so um

831
00:48:28,800 --> 00:48:31,840
Speaker 1: So this idea comes in from one of our research

832
00:48:31,920 --> 00:48:34,560
Speaker 1: or product analysts, and we have a proud Development committee

833
00:48:34,600 --> 00:48:37,520
Speaker 1: meeting in which someone should just electric vehicles. Of course,

834
00:48:37,560 --> 00:48:40,080
Speaker 1: they put forward a very robust analysis where they look

835
00:48:40,080 --> 00:48:43,440
Speaker 1: at target addressible market penetration rate and they're more like

836
00:48:43,600 --> 00:48:45,800
Speaker 1: industry dynamics. And in this part of work, case is

837
00:48:45,920 --> 00:48:48,600
Speaker 1: very obvious that it is a significant shift towards a

838
00:48:48,680 --> 00:48:53,920
Speaker 1: more sustainable world. Right, you have lots of catalysts towards

839
00:48:54,080 --> 00:48:59,040
Speaker 1: more adoption of electric vehicles and government support incentivizing clients

840
00:48:59,080 --> 00:49:02,720
Speaker 1: to buy electric vehicles. US. The cause of electric batteries

841
00:49:02,840 --> 00:49:07,280
Speaker 1: has gone down significantly because of the cause of lithium

842
00:49:07,280 --> 00:49:13,839
Speaker 1: batteries coming down significantly, and even the charging infrastructure behind um.

843
00:49:14,600 --> 00:49:18,200
Speaker 1: The adoption of electric vehicles is getting better and better.

844
00:49:18,440 --> 00:49:21,360
Speaker 1: And on top of that, it's still very early because

845
00:49:21,680 --> 00:49:28,239
Speaker 1: electric vehicles cells double in one and that is still

846
00:49:28,600 --> 00:49:32,840
Speaker 1: nine of torouct ourselves. So the potential is very, very significant.

847
00:49:32,880 --> 00:49:34,960
Speaker 1: So we look at all of these data and we

848
00:49:35,120 --> 00:49:38,640
Speaker 1: make the assessment that is an a part of it

849
00:49:38,719 --> 00:49:40,920
Speaker 1: is a thing that could be very powerful over the

850
00:49:41,000 --> 00:49:43,560
Speaker 1: coming decades. So the next step is we look at, okay,

851
00:49:43,640 --> 00:49:48,879
Speaker 1: are the enough public companies whose products and services are

852
00:49:49,120 --> 00:49:51,839
Speaker 1: dedicated to provide exposure to electric vehicles And that's when

853
00:49:51,880 --> 00:49:55,800
Speaker 1: our research and product teams working COSSE with index providers,

854
00:49:55,920 --> 00:50:00,560
Speaker 1: come up with them companies that typically it at least

855
00:50:00,640 --> 00:50:05,800
Speaker 1: fifty of their revenues from the electric vehicles space. And

856
00:50:05,880 --> 00:50:08,000
Speaker 1: then once we have like a universe of like forty

857
00:50:08,120 --> 00:50:11,080
Speaker 1: fifty companies as when we start refinding that process with

858
00:50:11,280 --> 00:50:15,239
Speaker 1: our portfolio management team, our PORTFOLI administration team, just to

859
00:50:15,320 --> 00:50:18,640
Speaker 1: make sure the internsal liquidity capacity of their strategy and

860
00:50:19,360 --> 00:50:22,399
Speaker 1: makes sense. And once we have a preliminary index, that's

861
00:50:22,400 --> 00:50:24,759
Speaker 1: when we start the process of bringing that e t

862
00:50:24,920 --> 00:50:29,760
Speaker 1: F to market. So I could see clearly Tesla, Lucid,

863
00:50:29,960 --> 00:50:34,719
Speaker 1: Rivan some clear purity tfs. You have the battery companies,

864
00:50:34,840 --> 00:50:39,480
Speaker 1: which is Panasonic to everybody else, Um, there's Electrify America.

865
00:50:39,640 --> 00:50:42,880
Speaker 1: They're all these network charging What do you do with

866
00:50:43,120 --> 00:50:47,640
Speaker 1: companies like Ford, for example, which has been very aggressive

867
00:50:47,719 --> 00:50:51,200
Speaker 1: in rolling out A t F s. Clearly it's not

868
00:50:51,440 --> 00:50:54,600
Speaker 1: half of their business, but they're moving in that direction.

869
00:50:54,680 --> 00:50:58,600
Speaker 1: We look at Volkswagen Autie Porsche just a huge run

870
00:50:58,680 --> 00:51:00,880
Speaker 1: of E t f s, and then we see the

871
00:51:00,960 --> 00:51:06,560
Speaker 1: Korean companies Undai Kia also very aggressively pushing in t tfs.

872
00:51:07,080 --> 00:51:12,920
Speaker 1: At what point do the legacy automakers become electric fight

873
00:51:13,239 --> 00:51:15,920
Speaker 1: enough that you would think about putting them into that

874
00:51:16,200 --> 00:51:19,040
Speaker 1: E t F that's a great question, very and it's

875
00:51:20,080 --> 00:51:23,320
Speaker 1: and it's a very very important part of our product

876
00:51:23,440 --> 00:51:26,760
Speaker 1: development process. And that's something that we've been very careful

877
00:51:26,960 --> 00:51:28,680
Speaker 1: over the years because I did know that day when

878
00:51:28,719 --> 00:51:31,480
Speaker 1: a claim by is one of our thematictives, we want

879
00:51:31,520 --> 00:51:33,319
Speaker 1: to make sure they get the exposure that they are

880
00:51:33,480 --> 00:51:36,480
Speaker 1: looking for. And to your point, do you want to

881
00:51:36,520 --> 00:51:39,320
Speaker 1: include a company like four in an electric vehicle c

882
00:51:39,440 --> 00:51:41,719
Speaker 1: TF if maybe like five percent of the revenues is

883
00:51:41,760 --> 00:51:44,840
Speaker 1: coming from electric vehicles, then is that really the explosion

884
00:51:44,840 --> 00:51:47,920
Speaker 1: of our clients are looking for. Probably not, So it

885
00:51:48,080 --> 00:51:51,360
Speaker 1: may change on the product or the theme, but typically

886
00:51:51,520 --> 00:51:56,759
Speaker 1: we apply a fifty revenue threshold for inclusion in the theme.

887
00:51:56,840 --> 00:52:00,759
Speaker 1: In this particular case for for companies is relatively straightforward.

888
00:52:01,200 --> 00:52:03,200
Speaker 1: That may be a little bit more challenging in other

889
00:52:03,320 --> 00:52:07,160
Speaker 1: areas like genomics and biotechnology because many of these companies

890
00:52:07,440 --> 00:52:09,800
Speaker 1: don't have revenue to begin with, so it's a challenging.

891
00:52:09,960 --> 00:52:13,440
Speaker 1: But then we look at things like research and development,

892
00:52:14,000 --> 00:52:16,080
Speaker 1: the type of problems that they offer to really make

893
00:52:16,080 --> 00:52:18,120
Speaker 1: sure that we as a as a group, as I

894
00:52:18,120 --> 00:52:22,400
Speaker 1: would probably development team, it feels strongly that that company

895
00:52:22,520 --> 00:52:24,560
Speaker 1: should be included in the thing that we're trying to

896
00:52:24,640 --> 00:52:27,759
Speaker 1: provide exposure to. So it'll be interesting to see how

897
00:52:27,960 --> 00:52:33,720
Speaker 1: long it will be before Mercedes, BMW, Ford, even GM

898
00:52:34,520 --> 00:52:38,480
Speaker 1: hit that fifty number, because I don't think that's twenty

899
00:52:38,640 --> 00:52:40,719
Speaker 1: or ten years off in the future, that that could

900
00:52:40,760 --> 00:52:44,920
Speaker 1: be five years off in the future. Ford is electric

901
00:52:45,160 --> 00:52:48,760
Speaker 1: or electric hybrid. Yeah, I mean, from from the information

902
00:52:48,840 --> 00:52:52,480
Speaker 1: that we are right now reviewing, all of these companies

903
00:52:52,560 --> 00:52:56,960
Speaker 1: have a very aggressive just strategy towards the production of

904
00:52:57,040 --> 00:53:00,359
Speaker 1: electric vehicles or hybrids. But they are all active looking

905
00:53:00,360 --> 00:53:03,440
Speaker 1: into the space because they can clearly see the trend.

906
00:53:03,560 --> 00:53:06,560
Speaker 1: If anything, quite frankly, governments around the world and this

907
00:53:07,400 --> 00:53:12,040
Speaker 1: and focus towards a more sustainable economy is very very clear.

908
00:53:12,200 --> 00:53:15,000
Speaker 1: So I think many of these car manufacturers can see

909
00:53:15,040 --> 00:53:17,200
Speaker 1: the writing on the wall. So let me throw you

910
00:53:17,280 --> 00:53:21,200
Speaker 1: a curveball before we get to our favorite questions. And

911
00:53:21,440 --> 00:53:25,399
Speaker 1: that's how often you get back to uh Spain? Every

912
00:53:25,480 --> 00:53:28,640
Speaker 1: time I've been to Spain and I've left just delighted

913
00:53:28,840 --> 00:53:31,320
Speaker 1: and I'm looking forward to going back. When was the

914
00:53:31,440 --> 00:53:34,160
Speaker 1: last time you went back? There's the answer is the answers.

915
00:53:34,200 --> 00:53:35,880
Speaker 1: I don't go back enough, to be honest with you,

916
00:53:36,120 --> 00:53:39,959
Speaker 1: but I usually go there every single Christmas because my family,

917
00:53:40,000 --> 00:53:42,400
Speaker 1: I mean, I've been now in the US for twenty

918
00:53:42,520 --> 00:53:44,840
Speaker 1: years and I have my own family here in in

919
00:53:44,920 --> 00:53:47,960
Speaker 1: New York in Brooklyn, but the rest of my family

920
00:53:48,280 --> 00:53:51,520
Speaker 1: is still in Spain. So I go there always for

921
00:53:51,680 --> 00:53:53,960
Speaker 1: Christmas because it's a very special part of the year

922
00:53:54,040 --> 00:53:57,600
Speaker 1: for for Spanish people and our and our culture. Where

923
00:53:57,640 --> 00:54:02,359
Speaker 1: in Spain it's a very small town called I would

924
00:54:02,400 --> 00:54:05,160
Speaker 1: be very surprised if you know about it, because people

925
00:54:05,239 --> 00:54:08,319
Speaker 1: from Spain don't know about it. It's two hours if

926
00:54:08,360 --> 00:54:12,600
Speaker 1: you go from Madrid towards Valencia. He's approximately right in

927
00:54:12,680 --> 00:54:15,560
Speaker 1: the middle, two hours away. So the Spain parts of

928
00:54:15,640 --> 00:54:19,320
Speaker 1: Spain that I'm familiar with, Bill Boo where the Google

929
00:54:19,400 --> 00:54:23,279
Speaker 1: Him Museum is, which is lovely um San Sebastian, which

930
00:54:23,400 --> 00:54:26,280
Speaker 1: is one of the most lovely spots in the world.

931
00:54:26,880 --> 00:54:30,759
Speaker 1: And then of course Barcelona. The last time I was

932
00:54:31,080 --> 00:54:36,040
Speaker 1: in Barcelona was in the midst of the Catalonian uprising,

933
00:54:36,640 --> 00:54:41,360
Speaker 1: so everything was closed. People were a million people marching

934
00:54:41,440 --> 00:54:47,160
Speaker 1: in the streets. It was. It was very um, peaceful

935
00:54:47,239 --> 00:54:50,200
Speaker 1: and well organized. But when you see him, literally a

936
00:54:50,280 --> 00:54:54,840
Speaker 1: million people marching past the police headquarters, which is across

937
00:54:55,000 --> 00:54:59,120
Speaker 1: the street from our hotel, I've never experienced anything like

938
00:54:59,160 --> 00:55:02,120
Speaker 1: that in my life. It was amazing. Yeah, It's definitely

939
00:55:02,160 --> 00:55:06,840
Speaker 1: been a very very big part of the political conversation

940
00:55:06,920 --> 00:55:10,000
Speaker 1: in Spain now for for many years, and unfortunately, for

941
00:55:10,080 --> 00:55:13,400
Speaker 1: the last five or six years, those types of conversations

942
00:55:13,440 --> 00:55:17,160
Speaker 1: around the independence of Catalonia from Spain seemed to escalate,

943
00:55:17,520 --> 00:55:20,759
Speaker 1: but unfortunately the conversation seems to have one down a

944
00:55:20,800 --> 00:55:23,799
Speaker 1: little bit, which I think is good. I think there

945
00:55:23,840 --> 00:55:30,719
Speaker 1: were more Michelin star rated restaurants in Barcelona than I

946
00:55:30,880 --> 00:55:33,880
Speaker 1: think in Paris, I think than any other city. You

947
00:55:34,360 --> 00:55:38,839
Speaker 1: google Michelan star rated restaurants and up comes a list

948
00:55:38,920 --> 00:55:42,279
Speaker 1: of like forty places. It was. It was really It's

949
00:55:42,320 --> 00:55:46,800
Speaker 1: an amazing city. It's beautiful, The one thing that whenever

950
00:55:46,920 --> 00:55:49,600
Speaker 1: I visit Europe and I come back home is Wow,

951
00:55:49,680 --> 00:55:52,759
Speaker 1: those folks really know how to kick back, relax a

952
00:55:52,840 --> 00:55:55,520
Speaker 1: little bit, and enjoy life. It feels like in New

953
00:55:55,600 --> 00:55:58,800
Speaker 1: York it's just go, go, go, work, work work. The

954
00:55:58,880 --> 00:56:03,439
Speaker 1: Europeans have a much more chill approach to dealing with life.

955
00:56:04,000 --> 00:56:06,080
Speaker 1: Do you miss that at all here in New York?

956
00:56:06,480 --> 00:56:09,279
Speaker 1: I certainly, I certainly do. There's definitely a different pace

957
00:56:09,400 --> 00:56:11,439
Speaker 1: to life when you go to euro particle in Spain,

958
00:56:11,480 --> 00:56:14,680
Speaker 1: I mean, if you go to southern Europe is even

959
00:56:14,880 --> 00:56:17,920
Speaker 1: more different from you know, with respect to for example,

960
00:56:18,440 --> 00:56:21,640
Speaker 1: New York, and I definitely, I definitely am miss that.

961
00:56:21,719 --> 00:56:25,040
Speaker 1: I think one of the the biggest benefits of a

962
00:56:25,160 --> 00:56:29,560
Speaker 1: country like Spain is that you can live very comfortably

963
00:56:29,920 --> 00:56:33,440
Speaker 1: with not a lot of money. And I think quality

964
00:56:33,480 --> 00:56:38,080
Speaker 1: of life is is overall like better than what you

965
00:56:38,120 --> 00:56:42,280
Speaker 1: can see in in for example, New York. It's less stressful,

966
00:56:42,400 --> 00:56:45,120
Speaker 1: to say the very least. They now to eat, they

967
00:56:45,400 --> 00:56:48,040
Speaker 1: to drink wine, They now to just kick back and relax.

968
00:56:48,520 --> 00:56:50,839
Speaker 1: I think we can all learn a little bit, at

969
00:56:50,920 --> 00:56:54,000
Speaker 1: least I feel like I would like to learn how

970
00:56:54,080 --> 00:56:57,200
Speaker 1: to throttle back a little bit. They have it down

971
00:56:57,280 --> 00:57:00,840
Speaker 1: to every time I'm there, I'm like, God, this it's beautiful.

972
00:57:01,400 --> 00:57:05,200
Speaker 1: Everybody seems to be very happy and chill. It's really

973
00:57:05,280 --> 00:57:07,439
Speaker 1: a wonderful part of the world, you know. And things

974
00:57:07,520 --> 00:57:10,160
Speaker 1: have definitely changed. But I've been growing up. I mean

975
00:57:10,239 --> 00:57:13,400
Speaker 1: my parents, my mom and my dad, they were both teachers,

976
00:57:13,480 --> 00:57:16,480
Speaker 1: like middle school teachers, and we used to go to

977
00:57:16,600 --> 00:57:18,960
Speaker 1: school in the morning and then go back home. We

978
00:57:19,000 --> 00:57:21,720
Speaker 1: will have lunch as a family, we would take a nap,

979
00:57:22,240 --> 00:57:24,680
Speaker 1: and then we will go back to to to school.

980
00:57:24,720 --> 00:57:27,120
Speaker 1: So it was definitely a different pace. And even today,

981
00:57:27,160 --> 00:57:30,720
Speaker 1: like I'm texting with with my friends and they're getting

982
00:57:30,720 --> 00:57:35,200
Speaker 1: ready for the holidays and they're having dinner at eleven pm.

983
00:57:35,200 --> 00:57:37,400
Speaker 1: So it's definitely a different, different place. And I think

984
00:57:37,440 --> 00:57:40,400
Speaker 1: that is but it goes both ways. For example, when

985
00:57:40,440 --> 00:57:43,760
Speaker 1: I'm so used now to the New York lifestyle that

986
00:57:44,000 --> 00:57:46,880
Speaker 1: speed speed, and when I go back to Spain and

987
00:57:46,880 --> 00:57:48,360
Speaker 1: I have to go to the bank to do some

988
00:57:48,480 --> 00:57:52,200
Speaker 1: sort of transaction and it texts forever, I do get

989
00:57:52,400 --> 00:57:55,040
Speaker 1: very frustrassed. I guess it's like a double edged sword.

990
00:57:55,640 --> 00:57:58,640
Speaker 1: You have to learn how to leave the New Yorker behind.

991
00:57:58,920 --> 00:58:00,720
Speaker 1: Like when I go on the k s, it's twenty

992
00:58:00,760 --> 00:58:04,600
Speaker 1: four hours before my walking pace begin to slow down.

993
00:58:05,040 --> 00:58:08,160
Speaker 1: Although I can tell you I can very much embrace

994
00:58:08,960 --> 00:58:13,400
Speaker 1: the idea of midday siesta. I can. If I could

995
00:58:13,440 --> 00:58:17,360
Speaker 1: work that into my routine, I think my my level

996
00:58:17,400 --> 00:58:21,040
Speaker 1: of chill will be much better than it is currently.

997
00:58:21,480 --> 00:58:24,480
Speaker 1: It's a It's something that we very much can learn

998
00:58:24,600 --> 00:58:27,400
Speaker 1: here from from Europe. Absolutely, I think that you should

999
00:58:27,400 --> 00:58:31,280
Speaker 1: definitely look into that. So let's jump to my favorite

1000
00:58:31,360 --> 00:58:34,640
Speaker 1: questions that I asked all of my guests, starting with

1001
00:58:35,600 --> 00:58:39,920
Speaker 1: what kept you entertained during the lockdown in Brooklyn? What

1002
00:58:40,000 --> 00:58:44,280
Speaker 1: were you watching or listening to? I mean, honly I

1003
00:58:44,360 --> 00:58:47,280
Speaker 1: don't watch a ton of TV. I think I mentioned earlier.

1004
00:58:47,320 --> 00:58:49,040
Speaker 1: I have like a four and a half a year

1005
00:58:49,240 --> 00:58:52,560
Speaker 1: all that gives me really entertained, and between that and

1006
00:58:52,640 --> 00:58:54,240
Speaker 1: global legs, I don't have a ton of time. So

1007
00:58:54,280 --> 00:58:57,560
Speaker 1: I al really tried to watch documentaries because they are

1008
00:58:58,040 --> 00:58:59,960
Speaker 1: definitely shorter in nature, so I don't have to watch

1009
00:59:00,120 --> 00:59:03,560
Speaker 1: three seasons to you know, finish the story. So I

1010
00:59:03,760 --> 00:59:07,920
Speaker 1: really I've been really into business documentaries. Literally, I watched

1011
00:59:08,440 --> 00:59:11,240
Speaker 1: HBO documentary on Warren Buffett, which is the one that

1012
00:59:11,280 --> 00:59:16,880
Speaker 1: I deeply admired. I was also watching recently a documentary

1013
00:59:17,040 --> 00:59:20,480
Speaker 1: on en Roun, which I didn't know the story to

1014
00:59:20,600 --> 00:59:22,200
Speaker 1: hell of a story. It's a health of story. I mean,

1015
00:59:22,280 --> 00:59:23,800
Speaker 1: you know a little bit. But I now we're living

1016
00:59:23,840 --> 00:59:26,040
Speaker 1: through it all over again. I know it's actually very

1017
00:59:26,120 --> 00:59:28,680
Speaker 1: very relevant. And I guess the last couple of days,

1018
00:59:28,680 --> 00:59:32,320
Speaker 1: I've been watching a documentary about FIFA on the World Cup.

1019
00:59:32,880 --> 00:59:34,959
Speaker 1: You know, it's funny because I was a World Cup

1020
00:59:35,040 --> 00:59:38,840
Speaker 1: fan like twenty years ago and I just fell in

1021
00:59:38,920 --> 00:59:42,840
Speaker 1: love with the pace of the game. And this year

1022
00:59:42,880 --> 00:59:46,760
Speaker 1: it just seems like it's become so politicized and quatar

1023
00:59:47,040 --> 00:59:49,720
Speaker 1: and the no beer and it's just it's just kind

1024
00:59:49,760 --> 00:59:54,480
Speaker 1: of crazy. Um. But I watched the U s Welles match.

1025
00:59:55,000 --> 00:59:57,640
Speaker 1: I've never seen a draw that felt like a loss.

1026
00:59:58,280 --> 01:00:01,120
Speaker 1: You know, it was like, wait, what spoiler alert? I hope,

1027
01:00:01,160 --> 01:00:06,080
Speaker 1: I hope everybody's already already watched that. Um. But it's

1028
01:00:06,080 --> 01:00:07,880
Speaker 1: a lot of fun to watch, isn't it. I love

1029
01:00:07,920 --> 01:00:10,040
Speaker 1: it and I quite frank I mean it's um. When

1030
01:00:10,040 --> 01:00:11,800
Speaker 1: I grew up, playing sports is a big part of

1031
01:00:11,840 --> 01:00:15,400
Speaker 1: who I am, and I just love watching the World Cup.

1032
01:00:15,480 --> 01:00:19,120
Speaker 1: It is true that this year's World Cup feels, for

1033
01:00:19,240 --> 01:00:23,160
Speaker 1: whatever reason, a little bit different. But I will tell you.

1034
01:00:23,160 --> 01:00:26,320
Speaker 1: I mean, when I first moved to Chicago from Spain,

1035
01:00:26,520 --> 01:00:29,240
Speaker 1: it was two thus on three just crazy. Has been

1036
01:00:29,280 --> 01:00:32,840
Speaker 1: like already twenty years ago. If I wanted to go

1037
01:00:32,920 --> 01:00:34,880
Speaker 1: to a restaurant or a bar to watch the game,

1038
01:00:34,960 --> 01:00:38,040
Speaker 1: it was really difficult to find a restaurant or a bar.

1039
01:00:38,280 --> 01:00:43,480
Speaker 1: The two thousand and three, like really four years later, definitely,

1040
01:00:43,760 --> 01:00:46,800
Speaker 1: I think because of the women's soccer team and how

1041
01:00:46,880 --> 01:00:50,680
Speaker 1: did so well, there was definitely a lot more attention

1042
01:00:50,760 --> 01:00:53,640
Speaker 1: towards towards the sport because in really four years you

1043
01:00:53,680 --> 01:00:56,160
Speaker 1: were able to watch games everywhere. But there was definitely

1044
01:00:56,160 --> 01:00:59,760
Speaker 1: like a big transition there. I found World Cup because

1045
01:01:01,040 --> 01:01:04,040
Speaker 1: around the same time, oh two oh three, my wife

1046
01:01:04,080 --> 01:01:06,840
Speaker 1: and I run a cruise and you run around all

1047
01:01:06,920 --> 01:01:08,800
Speaker 1: day and then you come back to the room about

1048
01:01:08,880 --> 01:01:12,200
Speaker 1: three in the afternoon and it's taken nap before dinner,

1049
01:01:12,800 --> 01:01:14,760
Speaker 1: and I would flip it on the TV and there

1050
01:01:14,840 --> 01:01:17,440
Speaker 1: was World Cup, or I would go to the one

1051
01:01:17,480 --> 01:01:20,520
Speaker 1: of the bar and the whole staff is watching World

1052
01:01:20,600 --> 01:01:24,960
Speaker 1: Cup and it was really fascinating. You have to give

1053
01:01:24,960 --> 01:01:26,800
Speaker 1: it a little time to get into the ebb and

1054
01:01:26,880 --> 01:01:29,560
Speaker 1: flow of the game and suddenly you find it's so

1055
01:01:29,800 --> 01:01:34,120
Speaker 1: different than football or baseball. It just has these natural waves.

1056
01:01:35,120 --> 01:01:37,240
Speaker 1: It was a lot of fun and I look forward

1057
01:01:37,280 --> 01:01:39,120
Speaker 1: to it every couple of years. It's really a blast.

1058
01:01:40,240 --> 01:01:42,000
Speaker 1: When I was in Chicago, mean, why are they? Probably

1059
01:01:42,360 --> 01:01:45,360
Speaker 1: my best experiences in Chicago was going to Spain won

1060
01:01:45,960 --> 01:01:48,560
Speaker 1: the World Cup in two thousand and all of my friends.

1061
01:01:48,600 --> 01:01:51,040
Speaker 1: I was working with Morgan at that time, all of

1062
01:01:51,160 --> 01:01:52,840
Speaker 1: my friends and I went to like a bar by

1063
01:01:52,920 --> 01:01:56,280
Speaker 1: the Chicago River and you know, we want. Of course,

1064
01:01:56,320 --> 01:01:58,200
Speaker 1: I would very happy for me, and then because it

1065
01:01:58,320 --> 01:02:01,280
Speaker 1: was a long, long day for all of us, I'm sure,

1066
01:02:02,080 --> 01:02:05,200
Speaker 1: let's talk about some of your mentors who helped shape

1067
01:02:05,320 --> 01:02:08,160
Speaker 1: your career. I mean this may sound I mean, of course,

1068
01:02:08,160 --> 01:02:11,120
Speaker 1: there are lots of people have helped my career over

1069
01:02:11,280 --> 01:02:13,600
Speaker 1: the years, and people have been very helpful. So this

1070
01:02:13,800 --> 01:02:17,040
Speaker 1: may come across as maybe maybe a little bit to

1071
01:02:17,240 --> 01:02:20,760
Speaker 1: touch you, Philly, but I will actually say my mom

1072
01:02:20,960 --> 01:02:23,760
Speaker 1: and my dad very because at the end of the day,

1073
01:02:23,840 --> 01:02:26,920
Speaker 1: they've worked very hard. They work very hard when I

1074
01:02:27,000 --> 01:02:29,920
Speaker 1: was growing up to give me like a really good education,

1075
01:02:30,000 --> 01:02:32,640
Speaker 1: and that's something that I'm very very thankful for because

1076
01:02:33,040 --> 01:02:35,240
Speaker 1: they were teachers, so they don't have many resources, and

1077
01:02:35,320 --> 01:02:37,920
Speaker 1: they worked very very hard Unque frankly because of the

1078
01:02:38,120 --> 01:02:41,560
Speaker 1: values that you know, over the years they kind of

1079
01:02:41,960 --> 01:02:44,200
Speaker 1: made me. And we're out because I know the day

1080
01:02:44,240 --> 01:02:48,920
Speaker 1: things like you know, being thoughtful, being kind, work, ethic, positivity.

1081
01:02:48,960 --> 01:02:51,640
Speaker 1: I think you learned that at home and you know,

1082
01:02:51,760 --> 01:02:54,439
Speaker 1: whether you realize it or not, I think every single

1083
01:02:54,520 --> 01:02:56,480
Speaker 1: decision that you're make in life is made through the

1084
01:02:56,600 --> 01:02:59,040
Speaker 1: lens of your values. And that's why I think it's

1085
01:02:59,120 --> 01:03:01,440
Speaker 1: it's so important. I'm very thankful to my parents for

1086
01:03:01,520 --> 01:03:04,000
Speaker 1: that good answer. You're you're not the only person who

1087
01:03:04,040 --> 01:03:06,800
Speaker 1: have brought up their parents or their or their father

1088
01:03:06,960 --> 01:03:09,480
Speaker 1: as as a as a key mentor, and I hear

1089
01:03:09,520 --> 01:03:12,240
Speaker 1: it pretty regularly. Let's talk about books. What are some

1090
01:03:12,320 --> 01:03:14,200
Speaker 1: of your favorites and what are you reading right now.

1091
01:03:14,640 --> 01:03:19,400
Speaker 1: One of my favorite books is A Month's Search for

1092
01:03:19,640 --> 01:03:25,280
Speaker 1: Meaning by Victor Franco. It's about the experiences of a

1093
01:03:25,600 --> 01:03:31,000
Speaker 1: prisoner in a Nazi concentration camp and it goes through that,

1094
01:03:31,080 --> 01:03:36,880
Speaker 1: you know, some of the challenges, is about inner strength, positivity, resilience,

1095
01:03:36,920 --> 01:03:40,000
Speaker 1: and it's a book that I always find extremely useful,

1096
01:03:40,040 --> 01:03:42,320
Speaker 1: particularly when you are going through a rough time in life,

1097
01:03:42,360 --> 01:03:45,280
Speaker 1: which are is it can happen to all of us.

1098
01:03:45,760 --> 01:03:47,760
Speaker 1: I always find myself going back to that book because

1099
01:03:47,800 --> 01:03:51,080
Speaker 1: it really helps me put things in in perspective. Right,

1100
01:03:51,120 --> 01:03:53,560
Speaker 1: everything is relative, and no matter how bad your day is,

1101
01:03:53,960 --> 01:03:57,439
Speaker 1: it ain't that bad relatively speaking. So I've always find

1102
01:03:57,440 --> 01:03:59,760
Speaker 1: myself going back to that book. And then now more recently,

1103
01:03:59,800 --> 01:04:02,360
Speaker 1: there like a different more more of an easy read.

1104
01:04:02,480 --> 01:04:06,560
Speaker 1: I'm reading a book called Atomic Habits by James Clear

1105
01:04:07,040 --> 01:04:09,480
Speaker 1: That is, I mean, the value proposition is very simple,

1106
01:04:09,600 --> 01:04:12,960
Speaker 1: is about how little adjustments in love in your life

1107
01:04:13,040 --> 01:04:16,680
Speaker 1: can lead to really remarkable outcomes. And I'm finding it's

1108
01:04:16,760 --> 01:04:19,840
Speaker 1: very It's a very easy read, but very interesting takeaways.

1109
01:04:20,200 --> 01:04:22,920
Speaker 1: I'm trying to remember who who said the quote you

1110
01:04:23,040 --> 01:04:25,800
Speaker 1: build your habits and then your habits build you. Um.

1111
01:04:26,800 --> 01:04:30,600
Speaker 1: And I have that book at home in my queue.

1112
01:04:30,640 --> 01:04:33,520
Speaker 1: I haven't gotten to it, but I've heard really good

1113
01:04:33,560 --> 01:04:35,280
Speaker 1: things about it. I just want to recommend it because

1114
01:04:35,320 --> 01:04:37,080
Speaker 1: it gives you, First of all, it highlights the importance

1115
01:04:37,120 --> 01:04:40,520
Speaker 1: of having good habits, but it goes beyond that. It's

1116
01:04:40,520 --> 01:04:43,720
Speaker 1: actually giving you some practical examples of how you can

1117
01:04:43,800 --> 01:04:47,280
Speaker 1: create habits in a much easier way. So very very powerful.

1118
01:04:47,760 --> 01:04:50,240
Speaker 1: What sort of advice would you give to a recent

1119
01:04:50,360 --> 01:04:53,720
Speaker 1: college graduate who was interested in a career in either

1120
01:04:54,080 --> 01:04:59,000
Speaker 1: investing or E t F s or working thematically. I

1121
01:04:59,160 --> 01:05:02,680
Speaker 1: think it would be to just try to talk to

1122
01:05:02,800 --> 01:05:06,120
Speaker 1: as many people in the industry as as you can.

1123
01:05:06,440 --> 01:05:08,760
Speaker 1: I think you know part in our case of of

1124
01:05:08,880 --> 01:05:11,120
Speaker 1: the A t F industry and asset management. Talk to

1125
01:05:11,200 --> 01:05:16,200
Speaker 1: portfolio management managers, pro development teams, research allies to try

1126
01:05:16,280 --> 01:05:20,080
Speaker 1: really get a good sense of what our industry is about.

1127
01:05:20,240 --> 01:05:22,560
Speaker 1: If you do that consistently, I think a few things

1128
01:05:22,640 --> 01:05:26,000
Speaker 1: will happen. One is that you will learn a lot

1129
01:05:26,160 --> 01:05:30,320
Speaker 1: about the industry too. Whenever you make the final decision

1130
01:05:30,360 --> 01:05:33,080
Speaker 1: of entering the industry, that decision will be a much

1131
01:05:33,200 --> 01:05:36,120
Speaker 1: more informed decision that if you had not gone through

1132
01:05:36,200 --> 01:05:39,800
Speaker 1: this this process. And finally, quite frankly, I would not

1133
01:05:39,920 --> 01:05:42,720
Speaker 1: be surprised if you end up working for one of

1134
01:05:42,840 --> 01:05:47,200
Speaker 1: the people that you actually interviewed over that kind of

1135
01:05:47,320 --> 01:05:52,120
Speaker 1: networking process really interesting. And our final question, what do

1136
01:05:52,160 --> 01:05:55,880
Speaker 1: you know about the world of thematic e t fs, investing,

1137
01:05:56,600 --> 01:05:59,200
Speaker 1: UM and just exchange traded funds today? You wish you

1138
01:05:59,280 --> 01:06:02,959
Speaker 1: knew twenty five years or so ago when you first

1139
01:06:03,040 --> 01:06:07,480
Speaker 1: began your career. Probably the biggest lesson is that the

1140
01:06:07,560 --> 01:06:14,880
Speaker 1: investment management industry is it's a marathon, it's not a sprint. UM.

1141
01:06:15,520 --> 01:06:20,120
Speaker 1: I think patience is probably one of the most underestimated

1142
01:06:20,240 --> 01:06:24,360
Speaker 1: skills in our industry, and I think it's incredibly important.

1143
01:06:24,440 --> 01:06:27,560
Speaker 1: And I was definitely very impatient in my early twenties,

1144
01:06:27,640 --> 01:06:29,760
Speaker 1: but I think I want to think at least that

1145
01:06:29,960 --> 01:06:34,560
Speaker 1: over the years, I've become much more patient, and I

1146
01:06:34,720 --> 01:06:36,520
Speaker 1: take my time to make some of the more more

1147
01:06:36,640 --> 01:06:41,479
Speaker 1: important decisions, and I definitely think more with a long

1148
01:06:41,600 --> 01:06:46,760
Speaker 1: term horizon in mind. Get rich slowly is always good advice. Louise,

1149
01:06:46,880 --> 01:06:49,640
Speaker 1: this has been absolutely fascinating. Thank you for being so

1150
01:06:49,840 --> 01:06:54,560
Speaker 1: generous with your time. We have been speaking with Louis Bruga.

1151
01:06:54,720 --> 01:06:57,880
Speaker 1: He is CEO of Global x E t f S.

1152
01:06:58,560 --> 01:07:01,040
Speaker 1: If you enjoy this converse station, well, be sure and

1153
01:07:01,120 --> 01:07:04,440
Speaker 1: check out any of our previous four hundred and fifty

1154
01:07:04,800 --> 01:07:08,240
Speaker 1: discussions we've had over the previous eight or nine years.

1155
01:07:08,400 --> 01:07:13,440
Speaker 1: You can find those at iTunes, Spotify, YouTube, or wherever

1156
01:07:13,600 --> 01:07:17,560
Speaker 1: you get your podcasts. We love your comments, feedback and

1157
01:07:17,640 --> 01:07:22,200
Speaker 1: suggestions right to us at m IB podcast at Bloomberg

1158
01:07:22,280 --> 01:07:24,880
Speaker 1: dot net. I would be remiss if I did not

1159
01:07:25,040 --> 01:07:27,919
Speaker 1: thank the crack team that helps us put these conversations

1160
01:07:28,000 --> 01:07:32,920
Speaker 1: together each week. Bob Bragg is my audio engineer. Attika

1161
01:07:33,000 --> 01:07:37,280
Speaker 1: val Bron is my project manager. Paris Wold is our producer.

1162
01:07:37,560 --> 01:07:41,520
Speaker 1: Sean Russo is my head of research. I'm Barry Retults.

1163
01:07:41,880 --> 01:07:48,360
Speaker 1: You've been listening to Masters in Business on Bloomberg radioa