Latest / Best of Business / Shane Solly: Harbour Asset Management spokesperson on the Government's plan to shake up Kiwisaver rules

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Shane Solly: Harbour Asset Management spokesperson on the Government's plan to shake up Kiwisaver rules · Best of Business

• 0:09
  Speaker 1: You're listening to a podcast from News Talks'd be follow
• 0:12
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• 0:16
  Speaker 2: Shane Soley with US harbor Asset Management. Shane, Good evening,
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  Speaker 2: Cure right, good to have you on. As we head
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  Speaker 2: into the end of the year. How has the year
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  Speaker 2: been for investors in your view?
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  Speaker 3: Oh, look, it's a great question, raised, Ryan. It's actually
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  Speaker 3: been a good year. It's been all about inflation coming down,
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  Speaker 3: which has allowed central banks to cut these official interest rates.
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  Speaker 3: But it's actually been pretty challenging for how to deal
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  Speaker 3: with things like wars and some pretty meaningful elections. Ryan,
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  Speaker 3: it's really challenged centiment. But yeah, we've certainly seen bond
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  Speaker 3: years lower in a strong year for global shaer returns,
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  Speaker 3: particularly the US market up over twenty eight percent, usually
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  Speaker 3: on share market don't okay, up eight percent, and some
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  Speaker 3: of the more speculative as it's like Crypto and Goal
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  Speaker 3: they've had sort of all time high level. So it's
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  Speaker 3: been a pretty good year.
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  Speaker 2: Government announced last week and we covered this the changes
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  Speaker 2: that are going to come to regulatory changes that will
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  Speaker 2: give can we say, the providers the chance to invest
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  Speaker 2: in private assets. Do you think that we will see
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  Speaker 2: lots of that happening.
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  Speaker 3: Yeah, a really really good point. So you come back
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  Speaker 3: to you know, why does this legislation change or regulation
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  Speaker 3: change count Because at the moment, as a keV saver provider,
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  Speaker 3: if you come in and say I want to change provider,
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  Speaker 3: I have to liquidate all the assets so that you
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  Speaker 3: can move your funds to another location. That's hard to
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  Speaker 3: do with private assets. So this new proposed regulation of
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  Speaker 3: our side pocketing, so it means those and bits are
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  Speaker 3: less liquid private assitts. They can be treated separately when
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  Speaker 3: you change from keV savers. So I think it will
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  Speaker 3: open up the opportunity. It'll take some time. We've got
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  Speaker 3: a lot of water to run under the bridge in
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  Speaker 3: terms of you know, what is the regulation, But yeah,
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  Speaker 3: I think it's a good start point. It's an important
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  Speaker 3: move for QV savers and for New Zealand. Over time.
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  Speaker 2: Does that mean we could see keV saver funds investing
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  Speaker 2: in k WE Bank all the ferries.
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  Speaker 3: Look, I think it's possible. You know, we are seeing
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  Speaker 3: you know, it depends about the quality and this and
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  Speaker 3: the prices assets. The key thing here is it opens
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  Speaker 3: up a new pipeline of opportunities to grow QV savers
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  Speaker 3: wealth and remember that three and a half million Kwis
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  Speaker 3: have a Q serve. It's really crucially growing there. Well,
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  Speaker 3: so yeah, if kwisaver, sorry, if KWI bank stacks up,
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  Speaker 3: then there'll be good advertise and yes, maybe even the
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  Speaker 3: enter island theories if the right frame. There's is a
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  Speaker 3: little way to go there though. I've got to say.
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  Speaker 2: We've kicked off the week with some new data, some
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  Speaker 2: economic data. Are you seeing any green shoots there?
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  Speaker 3: Yeah, Look, it was an interesting day, a bit of
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  Speaker 3: a mix. Some inflation data to continue to slow, which
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  Speaker 3: allows the Reserve Bank and he's on the continue to
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  Speaker 3: cut and we've seen a little bit of improvement and
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  Speaker 3: business sentiment for QI households is where it really matters.
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  Speaker 3: Food prices were down for them to November month, down
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  Speaker 3: minus one percent versus the previous month, and residential rents
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  Speaker 3: were out er point two of a percent. It sounds like, man,
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  Speaker 3: well that's not down, it's actually slowing from where it was,
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  Speaker 3: so again taking pressure off. But the interesting thing was
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  Speaker 3: we saw another lift and business sentiment in terms of
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  Speaker 3: the New Zealand Performance of Services Index. Now that is
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  Speaker 3: an index that measures confidence from service providers. If it's
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  Speaker 3: about fifty, that means they're growing expanding. If it's below fifty,
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  Speaker 3: then they're contracting. It was forty nine point five, it
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  Speaker 3: was almost expanding, up from forty six point two last month,
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  Speaker 3: so hitting in the right direction. But you know, our
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  Speaker 3: friends from the economists, the ins of the ir INSI
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  Speaker 3: III should so did a corely server economists and use
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  Speaker 3: an economists. They're expecting mild growth for twenty four to
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  Speaker 3: twenty five, so they're still a bit bearish. Hard to
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  Speaker 3: get them excited.
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  Speaker 2: There, Shane, Thank you for that, Shane, Solly, Harbor Asset Management.
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