You're listening to a Shasise podcast. One thing I think that we think about when we think about active and passive is and this is why I continue to talk about index tracking, because if there's an index in a market, then that's what you're doing. In a passive fund, that's your job right to replicate. In mirror key, we Savor in New Zealand has really grown this area of interest in a diversified fund, so that has broad in new complexity. When you get into a diversified fund, anybody, regardless of whether you're using index tracking, building blocks or stock selection, you're making a active choice on how you build that diversified fund. And so that's where the line I think that blurs between passive and active. So, yes, it's smart. Do we have a bunch of index tracking etips? Absolutely we do. Do we also under the super Life brand that we're going to change to Smart, have diversified fund We have those two. You need extra acid allocation expertise to go into that, so give you a little bit more color, give you a little bit cost as well from the sound of it too. Absolutely, but that's where you get the extra expertise. So we talk about how risk tolerant. Are you you might be conservative or balanced or growth. With that becomes a pretty global standard way of thinking how you spread your assets for that. So a balance portfolio pretty traditionally is sixty percent in equities which are called growth assets, forty percent in bonds or fixed income or defensive stable assets. That's the worldwide acknowledged. You can chat GPT that and will tell you what your standard asset allocation is. Right. So from there, right, we've started at the top. We've got some growth, some stability. That's the balance. But underneath that you've got asset categories. You've got New Zealand equities, Australian equities, International, the Europe. You've got fixed income which comes into your stable. You've also got cash and increasingly you've got alternative assets, so you have to look at those in that. You've got commodities. We've talked about gold before as a great diversifier. You've got property that's become listed properly, become really popular and far more standard in terms of that. So you've got asset categories. Then what you do as a fund manager and say, right, well, if those are the core ingredients, what's my strategic acid allocation. So when I break down the sixty forty, how do I make that up? And in that zone, we're all making a decision about where our target waiting is in any of those asset categories and what our range is. So you set that'll be in the SIPO and that's what you're set with. But then within that you have tactical plays. So even though you might be labeled a passive fund manager, when you're buying a diversified fund that's growth or balanced, we're all making conscious choices around acid allocation. So here it's smart. When we choose our diversified fund, we will build that up with index tracking building blocks because we think that those are tracking the market and are a good lower cost alternative. So that's how we build it. But we still need to put that together and know how our acid l cation looks. If you're an active fund manager, you've got the same acid allocation that you're working on, but at the lower level of fund you might choose instead of having index tracking funds, you might choose to build it up via active stock selection, so you're picking individual names, individual companies to build, which is a little bit more intensive, but potentially gives you exposure to greater greater gain, but greater losses. Well yeah, and so there's a whole lot more onus there on doing the research, finding the right companies and doing that. The tricky thing for investors, I think with the diversified fund is there's no easy benchmark or index. So there's no global New Zealand based investor balanced risk profile, there's no index for that. So it's really hard to compare the performance of our diversified funds. And that's why it comes into league tables and why people constantly talk in that space around as your fund performing in the top quart aisle or not, and where does it rank versus its peers. But we're all going to be slightly different in our acid allocation that we've employed and the width of our ranges and where we can tactically tilt given market conditions. So we might hold more in cash right now, less in international equities, and we can do that because that's within an acid allocation guideline rather than very specifically having to track to there's no global common standard of what a diversified fund should look like. Investing involves risk. You might lose the money you start with we recommend talking to a licensed financial advisor. We also recommend reading product disclosure documents before deciding to invest

You're listening to a Shasise podcast. One thing I think that we think about when we think about active and passive is and this is why I continue to talk about index tracking, because if there's an index in a market, then that's what you're doing. In a passive fund, that's your job right to replicate. In mirror key, we Savor in New Zealand has really grown this area of interest in a diversified fund, so that has broad in new complexity. When you get into a diversified fund, anybody, regardless of whether you're using index tracking, building blocks or stock selection, you're making a active choice on how you build that diversified fund. And so that's where the line I think that blurs between passive and active. So, yes, it's smart. Do we have a bunch of index tracking etips? Absolutely we do. Do we also under the super Life brand that we're going to change to Smart, have diversified fund We have those two. You need extra acid allocation expertise to go into that, so give you a little bit more color, give you a little bit cost as well from the sound of it too. Absolutely, but that's where you get the extra expertise. So we talk about how risk tolerant. Are you you might be conservative or balanced or growth. With that becomes a pretty global standard way of thinking how you spread your assets for that. So a balance portfolio pretty traditionally is sixty percent in equities which are called growth assets, forty percent in bonds or fixed income or defensive stable assets. That's the worldwide acknowledged. You can chat GPT that and will tell you what your standard asset allocation is. Right. So from there, right, we've started at the top. We've got some growth, some stability. That's the balance. But underneath that you've got asset categories. You've got New Zealand equities, Australian equities, International, the Europe. You've got fixed income which comes into your stable. You've also got cash and increasingly you've got alternative assets, so you have to look at those in that. You've got commodities. We've talked about gold before as a great diversifier. You've got property that's become listed properly, become really popular and far more standard in terms of that. So you've got asset categories. Then what you do as a fund manager and say, right, well, if those are the core ingredients, what's my strategic acid allocation. So when I break down the sixty forty, how do I make that up? And in that zone, we're all making a decision about where our target waiting is in any of those asset categories and what our range is. So you set that'll be in the SIPO and that's what you're set with. But then within that you have tactical plays. So even though you might be labeled a passive fund manager, when you're buying a diversified fund that's growth or balanced, we're all making conscious choices around acid allocation. So here it's smart. When we choose our diversified fund, we will build that up with index tracking building blocks because we think that those are tracking the market and are a good lower cost alternative. So that's how we build it. But we still need to put that together and know how our acid l cation looks. If you're an active fund manager, you've got the same acid allocation that you're working on, but at the lower level of fund you might choose instead of having index tracking funds, you might choose to build it up via active stock selection, so you're picking individual names, individual companies to build, which is a little bit more intensive, but potentially gives you exposure to greater greater gain, but greater losses. Well yeah, and so there's a whole lot more onus there on doing the research, finding the right companies and doing that. The tricky thing for investors, I think with the diversified fund is there's no easy benchmark or index. So there's no global New Zealand based investor balanced risk profile, there's no index for that. So it's really hard to compare the performance of our diversified funds. And that's why it comes into league tables and why people constantly talk in that space around as your fund performing in the top quart aisle or not, and where does it rank versus its peers. But we're all going to be slightly different in our acid allocation that we've employed and the width of our ranges and where we can tactically tilt given market conditions. So we might hold more in cash right now, less in international equities, and we can do that because that's within an acid allocation guideline rather than very specifically having to track to there's no global common standard of what a diversified fund should look like. Investing involves risk. You might lose the money you start with we recommend talking to a licensed financial advisor. We also recommend reading product disclosure documents before deciding to invest