Monday 22 July 2002
New Zealand Investors Remain Resilient
New Zealanders’ investor confidence is at high levels despite declining international equity markets, indicates the
latest ASB BANK Investor Confidence Survey for the June Quarter.
Confidence has remained consistently high with a net 21% of respondents expecting better returns from investments over
the next year, up from 19% last quarter.
ASB BANK Investments’ Chief Manager, Roger Perry, says Kiwi investor confidence remains positive in stark contrast with
flagging confidence in the US, which has taken a blow following a series of corporate accounting scandals.
“A vibrant local economy, including a solid commercial and residential property market, along with the relatively
well-performing New Zealand share market, are all likely factors in a bright outlook by Kiwi investors last quarter.”
Mr Perry expects investor’s confidence to be dampened somewhat over the remainder of the year, as rising interest rates
act to moderate the economy, while any recovery in international equity markets is likely to be slow.
When asked which particular investment will give the best return over the next twelve months, managed funds remains most
favoured. 17% of respondents favour managed investments, compared to 13% favouring residential property, 10% direct
share ownership, and 9% term deposits. However, after two years of decline in international markets, confidence in
managed funds is weakening. The 17% of respondents favouring managed funds compares with 19% last quarter, and 25% when
world share markets were at their peak two years ago.
There is a suggestion in the survey that managed fund investors believe the worst is behind them. When this group is
asked about their investments, 46% believe returns will improve, compared to just 11% who see further deterioration.
Ends.