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

 


Middle-income earners much more confident in markets

Middle-income earners much more confident in New Zealand’s financial markets

Almost 70 per cent of middle-income earners are now confident in New Zealand’s markets, an increase of 13 percentage points since 2013. A Financial Markets Authority survey of New Zealanders’ attitudes to financial markets, released today, has found confidence in our financial markets is growing. Overall confidence has risen five points to 59 percent from 54 percent in 2013.

Three-quarters (75 percent) of those surveyed hold an investment product, either through shares in the stock market, KiwiSaver, managed funds or bonds. This is up slightly from 72 per cent last year.

Rob Everett, Chief Executive, FMA, said “these are encouraging signs for our financial markets given the focus on New Zealand’s equity markets in the last twelve months, with the recent partial floats of three state-owned enterprises. “

“The fact those earning between $50,000 and $100,000 per year are a lot more confident points to broader participation in share markets and financial markets more generally. This reinforces the increasing importance of KiwiSaver, as people watch their balances grow.”

However, only half (53 percent) of those with investments said the materials they received about their investments were helpful in making an informed decision about whether to invest or not.

“While it’s disappointing that half of investors didn’t find investment materials useful, this is consistent with other feedback we’ve received,” said Mr Everett.

Under the new Financial Markets Conduct Act 2013, these materials will become simpler and easier for retail investors to read and understand. Investor materials in this context include the new product disclosure statements (PDS) which will replace the current prospectuses and investment statements.

The new PDS are retail, point of sale materials that provide the relevant information investors need to make decisions about investing in shares or in other financial products.

The requirement for simplified documents coming into effect this year should have a positive impact on confidence scores in future said Mr Everett. “The surveys we’ve done make it clear to the financial services industry that investors want clear and simple materials, in plain English, to help them make more informed decisions.

“The regulators and the industry need to work together to provide documents that help investors rather than solely protecting issuers” he said.

The survey also shows that those with investments are more likely to express confidence in financial markets (61 percent compared with 52 percent of those without investments). Additionally, 24 percent of investors said their confidence had increased since last year compared with 15 percent of those without investments.

“It’s the second year we’ve polled the public about their attitudes to financial markets and it’s encouraging to see confidence improving year on year. However, it’s vital to distinguish between confidence in the way markets are performing and confidence about the way investment markets and products are understood and used by investors,” said Mr Everett.

“As a regulator, FMA is focused on promoting fair, efficient and transparent markets. We want to ensure the infrastructure around the markets delivers a robust system that’s well–regulated and protects investors from wrong-doing. With increasing confidence in the infrastructure and its regulation we’d hope people become more confident about participating in the markets while understanding that markets move in cycles and positive outcomes are not guaranteed.”


Colmar Brunton conducted the survey and interviewed 1,015 people from 12-18 March 2014.

Ends


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: Dairy Product Prices Decline To Lowest Since July 2012

Dairy product prices dropped to the lowest level since July 2012 in the latest GlobalDairyTrade auction, led by a slump in rennet casein and butter milk powder. More>>

ALSO:

SOE Results: TVNZ Lifts Annual Profit 25% On Flat Ad Revenue, Quits Igloo

Television New Zealand, the state-owned broadcaster, lifted annual profit 25 percent, ahead of forecast and despite a dip in advertising revenue, while quitting its stake in the pay-TV Igloo joint venture with Sky Network Television. More>>

ALSO:

Insurers Up For More Payouts: Chch Property Investor Wins Policy Appeal In Supreme Court

Ridgecrest NZ, a property investor, has won an appeal in the Supreme Court over insurance cover provided by IAG New Zealand for a Christchurch building damaged in four successive earthquakes. More>>

ALSO:

Other Cases:

Royal Society: Review Finds Community Water Fluoridation Safe And Effective

A review of the scientific evidence for and against the efficacy and safety of fluoridation of public water supplies has found that the levels of fluoridation used in New Zealand create no health risks and provide protection against tooth decay. More>>

ALSO:

Scoop Business: Croxley Calls Time On NZ Production In Face Of Cheap Imports

Croxley Stationery, whose stationery brands include Olympic, Warwick and Collins, plans to cease manufacturing in New Zealand because it has struggled to compete with lower-cost imports in a market where the printed word is giving way to electronic communications. More>>

ALSO:

Prefu Roundup: Forecasts Revised, Surplus Intact

The National government heads into the election with its Budget surplus target broadly intact, delivering a set of economic and fiscal forecasts marginally revised from May to reflect weaker commodity prices and a lower tax take. More>>

ALSO:

Convention Centre: Major New SkyCity Hotel And Laneway For Auckland

Today SKYCITY Entertainment Group Limited revealed plans to build a new hotel and pedestrian laneway of bars, restaurants and boutique shopping on land it owns in the Nelson and Hobson Streets block, expanding the SKYCITY Entertainment Precinct. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news