Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


ASB Investor Confidence Report Quarter 4 2012

ASB Investor Confidence Report Quarter 4 2012

26 February 2013

Investor confidence steady as she goes

Investor confidence in Q4 2012 remains unchanged on Q3 2012 at 13%.
Rental property retains top spot as most attractive investment class.
Investors reviewing stance on assets with higher yields.

Investor confidence has held its ground according to the latest ASB Investor Confidence Survey. ASB Head of Wealth Advisory Jonathan Beale says, “The ASB Investor Confidence Index has continued to sit at a net 13 points during the three months to December 2012. The fact it hasn’t budged since the previous quarter means investors remain the most upbeat they have been since the end of 2010.”

Mr Beale points out that while investor confidence has remained steady overall, the month-by-month figures show that what happens internationally still weighs heavily on investors’ minds and can lead to a roller coaster ride as confidence soars and slides.

“Investor confidence reached a high of net 22% in the first month of Q4’12, before declining to 10% in November 2012 and dropping further to 6% in December 2012. Optimism shone through when progress was being made in the Eurozone debt crisis and the risk of a disorderly default was reduced. Then the optimism ebbed away following the US fiscal deadlock towards the end of the year.”

On balance, respondents remain optimistic about investment returns throughout the country and across most demographics. Rental property is viewed as being the asset most likely to provide the best returns for investors - up 1 point to 19% of respondents.

“In a reflection of what we keep hearing about in regards to the uneven demand for property around the country, Aucklanders remain most optimistic about returns on rental property. 24% of Auckland respondents perceived property as the most likely to give the best return, up 1 percentage point from Q3. In contrast, 18% believed Term Deposits, (up 1 point), and 12% believed KiwiSaver, (also up 2 points),”says Mr Beale.

“Compare that to outside of Auckland where Rental property and Term Deposits share top spot on 17%. Managed Investments and KiwiSaver are both up 3 points to 16% and 15% respectively. Bank Savings accounts have fallen significantly, down 4 points to just 5%.”

Mr Beale believes this lift in managed investments is a sign a greater percentage of investors are feeling more confident seeking out assets with higher potential yields, instead of sticking with more secure options.

The analysis is based on 660 online interviews with adults aged 18 years and older throughout New Zealand.

Chart 1: Net investor confidence (difference between the “better” and “worse” figures)

Chart 2: Percentage of total sample who feel this type of investment gives the best return

Chart 3: Percentage of total sample who feel this type of investment gives the best return, Auckland and rest of NZ

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

BusinessDesk: APN's NZME Sees Future In Paywalls, Growth In Digital Sales

APN News & Media has touted a single newsroom concept for its NZME unit in New Zealand, similar to what Germany's Die Welt uses, saying an 'integrated sales proposition' is helping it win market share, including ... More>>

Labour Party: Global Milk Prices Now Lowest In 6 Years

The latest fall in the global dairy price has brought it to the lowest level in six years and shows there must be meaningful action in tomorrow’s Budget to diversify the economy, says Labour’s Finance spokesperson Grant Robertson. “Dairy prices ... More>>

BusinessDesk: NZ Inflation Expectations Creep Higher In June Survey

May 19 (BusinessDesk) - New Zealand businesses lifted their expectations for inflation over the next two years, sapping any immediate pressure on the Reserve Bank to cut interest rates, and prompting the kiwi dollar to jump higher. More>>

BusinessDesk: Lower Fuel Costs Drive Down NZ Producer Input, Output Prices

May 19 - Producer input and output prices fell in the first quarter, mainly reflecting lower fuel costs and weakness in prices of meat and dairy products. More>>

Media: Fairfax Media NZ Announces Senior Editorial Team

Fairfax Media New Zealand has today confirmed its new editorial leadership team, as part of a transformation of its newsrooms aimed at enhancing local and national journalism across digital and print. More>>

Science: Flavonoids Reduce Cold And Cough Risk

Flavonoids reduce cold and cough risk Research from the University of Auckland shows eating flavonoids – found in green tea, apples, blueberries, cocoa, red wine and onions – can significantly reduce the risk of catching colds and coughs. The research, ... More>>


BusinessDesk: RBNZ House Alert Speech The Catalyst For Government Action

Prime Minister John Key all but conceded that pressure from the Reserve Bank of New Zealand for concerted action on rampant Auckland house prices was one of the main catalysts for the government's weekend announcements about tightly ... More>>

BusinessDesk: How To Fall Foul Of The New Housing Tax Rules: Tips From IRD

Just because you rented out your investment property doesn't absolve you from paying tax, says the Inland Revenue Department in a summary of commonly made mistakes by non-professional property investors when it comes to their tax liability.More>>

Legal: Superdiversity Law, Policy And Business Stocktake Announced

Mai Chen, Managing Partner at Chen Palmer New Zealand Public and Employment Law Specialists and Adjunct Professor of Law at the University of Auckland, today announced the establishment ... More>>

Housing: More House Price Gains Expected

House price expectations remain high, with a net 56% of respondents expecting house prices will increase. Fears of higher interest rates are fading, consistent with the RBNZ’s signals this year. Affordability and a lack of houses for ... More>>

TDDA: State-Of-The-Art Drug Testing Laboratory To Open In Auckland

World leading drug testing agencies, The Drug Detection Agency (TDDA) and Omega Laboratories, open New Zealand laboratory More>>

Network: Bigpipe Launches Ultra-Fast Broadband Into Wellington

Bigpipe Launches Ultra-Fast Broadband into Wellington Naked broadband provider Bigpipe has extended its national reach, announcing today, the launch of its unlimited UFB offering into Wellington. The Spark Venture business is giving Wellingtonians the ... More>>

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news