NZ investment managers running with the bears
AUCKLAND, July 3 2008 –
New Zealand investment managers are bearish on almost every asset class according to the latest Investment Manager
Outlook published by Russell Investments.
Nor do they think happier times are just around the corner.
The snapshot of the sentiment of nine of New Zealand’s influential investment managers was taken in June.
Russell Investment’s Senior Manager of Investment Consulting, Alister Van der Maas says one bright spot is that New
Zealand’s equity market is seen as attractive with 33% believing the market is undervalued. But most think there is
still pain to be felt this year before the market recovers.
“This is in contrast to the majority of Australian managers who are now of the view that the Australian equity market
has already hit its low for the year,” Mr Van der Maas says.
US managers, who also complete a similar survey for Russell Investments, identified a slowing economy as the most
significant threat to their market. NZ managers concur, with most managers expecting slower or zero economic growth over
the next 12 months and unemployment to rise. A couple even forecast recession.
Looking at the asset classes, 60% of the NZ managers favour cash. That’s the strongest showing in the history of the
survey in New Zealand.
NZ bonds also have some attraction with more managers bullish on bonds than the prior quarter. But Mr Van der Maas says
this has probably been driven by bearish attitudes to property and equities in the near term.
A notable finding in the survey is the view on the NZ dollar. Almost all the investment managers surveyed are now
bearish about the NZ dollar against the US dollar.
ENDS