Managed Funds Remain The Investment Of Choice

Tuesday, 22 October 2002, 10:27 am
Press Release: ASB Bank

MEDIA RELEASE

TUESDAY 22 OCTOBER 2002

Managed Funds Remain The Investment Of Choice For Most Kiwis But Expectations For Returns Continue To Slide

Expectations for the returns delivered by managed funds over the coming year have fallen to their lowest levels recorded since the ASB BANK Investor Confidence survey commenced five years ago. However, managed funds still remain the investment of choice for most New Zealanders.

The survey reveals a continued decline from 17% to 13% over the September quarter in people who expect better returns from managed funds than other types of investments.

Managed funds are 1% ahead of residential rental property, in which confidence in returns remains consistent at 12%.

Overall investor confidence in returns remains quite positive at a net 12% but has not maintained the high levels seen in the previous quarter (net 21%) or the quarter before that (net 19%).

Roger Perry, Chief Manager, ASB BANK Investments believes the decline in confidence is driven by the prolonged fall in international equity markets.

“Investors are beginning to accept that international markets are not turning around quickly and that’s starting to have an effect on their confidence levels. In spite of this investors still believe that managed funds provide the best return opportunity.

“The effect of falling international share prices on investor confidence is exacerbated by uncertainty around the global economic outlook, falling share prices, the threat of further terrorist attacks, and the growing prospect of war in Iraq. If these conditions continue they are likely to dampen investor’s confidence through the next quarter.

“The lack of movement in confidence for residential rental property returns appears inconsistent with the strong housing market over the last 12 months, and the strong migration inflows. However, as the turnaround in the rental market is a relatively recent event, after several years of modest returns, it will take some time for investors to refocus on rental property,” he says.

Ends.

The ASB BANK Quarterly Investor Confidence Survey is a nationwide survey, which has been undertaken every quarter since May 1998 interviewing a sample of up to 1000 respondents.

Note: This media release is also available at www.networkpr.co.nz

© Scoop Media

ASB Bank

Helping you get one step ahead.

In 1847, ASB opened as the Auckland Savings Bank with the pledge: 'to serve the community; to grow and to help Kiwis grow'. And that is very much what ASB is about today.

ASB is a leading provider of integrated financial services in New Zealand including retail, business and rural banking, funds management and insurance.

ASB strives to consistently provide its customers with outstanding service and innovative financial solutions. They're dedicated to providing simple financial products that allow their customers to bank with them how and when they want.

We all have our own ways to measure progress, and our own stories about the things that matter to us. Whatever way you choose to measure progress, and whatever your goals, ASB is there to help you get one step ahead.

Contact ASB Bank

• Info on - Bank Accounts
• Info on - ASB Home Loans
• Info on - ASB Credit Cards
• Link to - Mortgage Calculator
• Info on - Business Banking
• Info on - ASB Kiwisaver
• Link to - ASB Blog
• Info on - Personal Loans