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


Kiwis Confident Financial Markets Will Recover From COVID-19, Plan To Increase Investments

Despite the majority (60%) of investors experiencing losses as a result of COVID-19, the outlook on investing remains positive, according to a Financial Markets Authority (FMA) survey. Most Kiwis (71%) were optimistic that the pandemic will pass eventually and markets will recover with time. Nearly a quarter (23%) were planning to increase existing investments or make new investments in the year ahead.

However, 45% of those surveyed were concerned about the impact from COVID-19 on their personal financial situation.

The FMA has today released the second part of its annual Investor Confidence Survey, which focused on the impacts of COVID-19. The survey was conducted between 5 and 14 May 2020, when New Zealand was in Level 3 lockdown and by which time the NZX50 had recovered some of the losses from its lows at the end of March.

Gillian Boyes, FMA Manager – Investor Capability, said the survey showed more New Zealanders are now taking greater interest in their finances and investments, which is positive, although making big changes should be considered carefully. “It’s encouraging to see two-thirds of KiwiSaver investors view their fund as a long term investment, and almost 80% were confident that KiwiSaver would be there for them at retirement.”

KiwiSavers making changes

In the past 12 months, 21% of KiwiSaver members made a change to their KiwiSaver. While some have increased their contributions, the biggest change was changing fund type. 12% of all KiwiSaver members switched fund in the last year, with over 1 in 5 of these moving from growth to conservative or cash funds. Of all KiwiSaver members who switched fund in the past year, 43% did this after COVID-19 began impacting the markets.

Overall, around half of investors made a change to their investments around or after COVID-19 and of those 78% said they were influenced by volatility.

KiwiSaver investors more engaged

“The FMA and KiwiSaver industry urged KiwiSaver investors not to panic and stay the course. We saw providers ramp up their communications to members throughout the height of market volatility. Half of people said they received communication about the impacts of COVID and the majority of these were satisfied with their providers’ efforts,” said Ms Boyes.

KiwiSaver members took a greater interest in their investment due to the market volatility caused by COVID-19, with nearly one-quarter (23%) indicating that they now check their fund balance more frequently.

Over one-third of investors reported using an online resource to understand how their fund had been impacted and this was mostly a provider resource. In total, 62% of KiwiSaver members check their balance at least once a month, with 25% checking weekly or more often.

Future Behaviours

Looking forward, around a quarter of those surveyed are planning a new investment or changing their current settings.

“There’s no doubt the current circumstances are raising real concerns for a large portion of New Zealanders, but we can still see rays of light from some of those surveyed. Half of those planning a new investment this year are considering shares which points to the new appetite for direct shares among a younger part of the population. There is even a small portion of people (about 4% of the survey) considering investing for the first time this year, or joining KiwiSaver,” said Ms Boyes.

© Scoop Media

Business Headlines | Sci-Tech Headlines


The Narrow Divide: New Poll Shows Tight Political Race For SME Votes

In a major turnaround following nearly a decade of MYOB election polls, Labour is currently the preferred political party of New Zealand’s SMEs, with 38% of SME owners and decision makers intending to vote red in the upcoming General Election, ... More>>

Reserve Bank: Further Easing In Monetary Policy Delivered

Tēnā koutou katoa, welcome all. The Monetary Policy Committee agreed to expand the Large Scale Asset Purchase (LSAP) programme up to $100 billion so as to further lower retail interest rates in order to achieve its remit. The eligible assets remain ... More>>

Retail: Post-Lockdown Retail Card Spending Picks Up

The rise in retail card spending was boosted by sales of furniture, hardware, and appliances, Stats NZ said today. “For a third consecutive month, card spending on the long-lasting goods (durables) remained at higher levels than last year, after ... More>>

Contact: Business Drops, New Generation On Hold

New Zealand’s second-largest energy company Contact Energy (‘Contact’) released its full year financial results for the 12 months to 30 June 2020 (‘FY20’) this morning. More>>

Mining: OceanaGold Announces Receipt Of WKP Mining Permit

MELBOURNE, Australia, Aug. 6, 2020 /CNW/ - OceanaGold Corporation (TSX: OGC) (ASX: OGC) (the 'Company') is pleased to announce it has received the mining permit for Wharekirauponga ('WKP') on the North Island of New Zealand. ... More>>


Economy: COVID-19 Lockdown Has Widespread Effects On Labour Market

In the June 2020 quarter, the seasonally adjusted unemployment rate fell to 4.0 percent, down from 4.2 percent last quarter, while underutilisation rose, Stats NZ said today. More>>


NZ Post: New Research By NZ Post Shows Online Shopping Grew 105% In Alert Level 3

New research by NZ Post into how the COVID-19 response has impacted the way Kiwis shop online, shows online shopping increased 105%* when the country moved into Alert Level 3, and may have changed the way Kiwis shop permanently. Online spend peaked ... More>>


Antarctica NZ: Ice-Olation

Antarctica New Zealand is gearing up for a much reduced season on the ice this year and a very different deployment to normal! Before they head to one of the remotest places on the planet, all personnel flying south with the New Zealand programme will ... More>>


QV Valuations: July House Price Index Illustrates Market Resilience

According to the July 2020 QV House Price Index (HPI) results out today , property values recorded a marginal increase, up 0.2% over the month. This is somewhat of a turnaround from June, after the national index edged 0.2% lower. More>>


Property: Queenstown Rents Experience Biggest Drop In Seven Years

Rental prices in the Queenstown-Lakes district saw the biggest annual percentage drop in seven years after falling 28 per cent on June last year, according to the latest Trade Me Rental Price Index. Trade Me Property spokesperson Aaron Clancy said ... More>>

Seismology: The Quiet Earth

As many daily activities came to a halt during lockdown, the Earth itself became quiet, probably quieter than it has been since humans developed the technology to listen in. Seismologists have analysed datasets from more than 300 international ... More>>

RNZ: James Shaw Says Kiwibank, Not Ministers Should Decide On Investors

Climate Change Minister James Shaw says Kiwibank's decision to stop doing business with companies dealing in fossil fuels is the right one. More>>


FMA: Kiwis Confident Financial Markets Will Recover From COVID-19, Plan To Increase Investments

Despite the majority (60%) of investors experiencing losses as a result of COVID-19, the outlook on investing remains positive, according to a Financial Markets Authority (FMA) survey. Most Kiwis (71%) were optimistic that the pandemic will pass eventually ... More>>

FIRST Union: Warehouse Using Covid For Cover As Extensive Restructure Makes Everyone Worse Off

(FIRST Union comments on The Warehouse consultation and proposed restructure) 'Unfortunately the Warehouse have done the disappointing thing and used Covid-19 to justify a bunch of operational business decisions that will leave hundreds of workers without jobs ... More>>