Investor Confidence Falling

Read More

Every year the Financial Markets Authority (FMA) surveys the public to measure their level of confidence in New Zealand’s financial markets. The role of the FMA is to promote fair, efficient and transparent financial markets and surveying the public is one of the ways in which they find out how well they doing in this regard. In the latest survey, around 66% of those surveyed said they were confident in New Zealand’s financial markets. This is up from 58% in the 2013 survey, but below the 69% recorded in 2017 and 66% in 2018.

Investor confidence is influenced by many different factors. The reasons given in this year’s survey for not feeling confident were that people feel they don’t know enough, they are uncertain about the cycle of the market and the political climate and they are concerned about global financial insecurity. On the positive side, people are reassured by the current financial climate, our small, stable market, and confidence from good past experiences.

The survey also highlights interesting information about how and where people invest. Around 66% of New Zealanders have a KiwiSaver fund and for 32% of people surveyed, KiwiSaver is their only investment. After KiwiSaver, the most common form of investment is term deposits, held by around 34% of people. Shares, managed funds and residential property are well behind being held by slightly above or below 15% of people.

Understanding of basic investment principles is low, with less than half of people surveyed understanding what diversification means. Only 15% of people were able to correctly identify diversification as investing all your money across different investment choices such as shares, property and cash. There is much work to be done to improve the financial literacy of New Zealand investors. This is particularly important given the global uncertainty ahead.

Related Articles

Liz Koh

Budget Winners and Losers

The latest Government budget had something for everyone but while most households will be a few dollars a week better off, there are some clear winners and losers. In the winners’ corner are businesses, those on high incomes, and savers. The biggest losers are property investors who have built large portfolios financed partly by tax rebates.

Read More »

Top Up or Miss Out

The end of June is an important date for KiwiSaver members. The financial year for KiwiSaver runs from 1 July 2009 to 30 June 2010 and if you have contributed at least $1,040 to KiwiSaver during that time, you will be eligible for the full amount of Government tax credit to be paid into your KiwiSaver account in July.

Read More »

Responsible Investing

There is a worldwide trend for investors to want to make a positive contribution to the world by investing in companies that are socially and environmentally responsible. If you are passionate about the effects of climate change, the scarcity of food and water, and social or environmental policies in general, then you will no doubt wish to ensure that the companies in which you invest are going about their business in a manner that is consistent with your views.

Read More »

Helping You Live your retirement To the Max

Keep in touch

Fill in your details and we’ll get back to you in no time.