NZX-listed Shares Underpin Record Growth In Kiwis’ Retirement Savings

6 October 2021 – Shares in NZX-listed companies shine through as the asset class of choice for managed funds, KiwiSaver and other superannuation schemes, with the Reserve Bank’s latest QMF Survey showing a total of nearly $250 billion under management at 30 June 2021.

NZX Chief Executive, Mark Peterson, says it is a tremendous point of pride for the team at New Zealand’s Exchange to see holdings of listed shares increase 7% to a record high of $119.3 billion, with significant investment in local companies.

NZX-listed and international shares now account for more than 41% of total funds under management, compared with about 35% at the start of 2020 before the COVID-19 pandemic hit.

“As New Zealand’s Stock Exchange, Te Paehoko o Aotearoa, we always want to be seen as the natural home for Kiwi companies, and we’re equally conscious of how important local capital markets are in ensuring domestic investors have easy and ready access to a pipeline of home-grown companies.”

Together with investments in managed funds and superannuation schemes, Mr Peterson says New Zealand has a comparatively large base of retail investors, and over the past year NZX has recorded the most significant re-engagement with equities [shares] as an investment class in the past 30 years.

“Retail participation has been at levels never seen before in our sharemarket, helped by the growing popularity of online trading platforms – Jarden Direct, Sharesies and ASB Securities – that enable easy and low-cost access for both DIY and advised retail investors.

“This is positive for our market, and spurring interest and investment in our issuers,” he says. “We’re absolutely proud to be able to be enabling Kiwis to have global innovators Fisher & Paykel Healthcare, Pushpay, Pacific Edge, Serko, and other industry leaders such as Mainfreight right in front of them, and at their fingertips, as an investment choice on NZX.”

The total value traded on NZX of $27 billion during the first half of 2021, through more than eight million trades, reflects heightened interest across all investor segments.

The COVID pandemic materially stimulated and accelerated activity on the New Zealand sharemarket in 2020, and NZX’s businesses have continued to operate at a structurally higher level in 2021.

Mr Peterson says there is strong recognition of the value of being listed on NZX.

“The COVID crisis demonstrated the clear value of being listed on NZX; ready access to capital and we believe this is a factor, along with NZX’s origination activity, in the growth we are seeing in new listings.

Primary capital raised in the first half of 2021 was up 47% to $3.4 billion.

“As all businesses and investors face an outlook with elevated uncertainty – including the prospect of rising interest rates and increasing inflation – we are working closely with our customers to ensure they are aware of the opportunity to raise different forms of capital to suit their needs.”

Mr Peterson says NZX’s focus remains on the unique role NZX and our public markets can play in supporting the resilience and long-term success of our customers and economy.

With both retail and institutional investors looking for a wider range of investment opportunities and ready to back our NZX-listed companies, we are optimistic on the pipeline and potential for new listings,” he says.

© Scoop Media