Biggest Ever Climb In Investor Confidence

Friday, 6 November 2009, 9:22 am
Press Release: ASB Bank

Media release
ASB Investor Confidence Report

5 November 2009

Biggest Ever Climb In Investor Confidence

• Record turnaround in sentiment as investor confidence hits a two year high
• KiwiSaver investors are increasingly positive about their investment
• Mixed views about the best investment opportunity in the coming 12 months

ASB’s quarterly investor confidence survey puts overall investor confidence at its highest level in nearly two years, but at the same time there remains a great deal of uncertainty as to what form of investment will give the best return in the year ahead.

“In the September quarter a net 14 percent of people surveyed expected a better return on their investment in the coming 12 months,” said Nick Tuffley, ASB Chief Economist.

“This is a turnaround of a net 25 points in the space of only three months, the largest change in quarterly confidence in the survey’s 11-year history.

“There has been a huge reversal in confidence since March 2009 with a dramatic net 39 percent improvement being recorded. This rise in confidence has been greater than the level by which it fell following the world economic collapse in late 2008 (a 28 percent fall in six months).”

Lack of clarity continues about where the best returns will come from

Nick Tuffley said that the latest survey captured the mood of investors at a crossroads.

“Investors believe that things will get better, but there is no consensus as to where the best future returns will be achieved.

“While an appetite to accept a little more risk has come with this return in confidence in the economy, people are still weighing up their options.”

He said that the traditional safe havens in uncertain times - rental property, bank savings and term deposits - still headed the list of where investors thought returns will be best, although all had ebbed in popularity in the last three months.

Rental property remained marginally ahead of bank savings as the most popular form of investment (net 16 percent) but its appeal has tracked down in the last 3 months. Of those who do have rentals as their main form of investment, 57 percent believe it will offer the best return in the coming 12 months.

“While bank savings, at 15 percent, is the second most popular investment, of those people who held bank savings as their main investment, only 32 percent felt it would offer the best returns over the next year.”

“Conversely, while overall only 6 percent of respondents currently felt shares offer the best returns, 62 percent of those who held the majority of their investment in shares were confident shares will offer the greatest return.”

KiwiSaver investors increasingly positive

Investors with KiwiSaver as their main form of investment were also increasingly positive about the future, with 41 percent believing KiwiSaver will give the greatest return in the next 12 months.

“In times such as this, when investors are seeking direction, previous experience shows a greater proportion seek professional advice from their trusted advisers rather than rely solely on their own decision making.”

[ENDS]

© Scoop Media

ASB Bank

Helping you get one step ahead.

In 1847, ASB opened as the Auckland Savings Bank with the pledge: 'to serve the community; to grow and to help Kiwis grow'. And that is very much what ASB is about today.

ASB is a leading provider of integrated financial services in New Zealand including retail, business and rural banking, funds management and insurance.

ASB strives to consistently provide its customers with outstanding service and innovative financial solutions. They're dedicated to providing simple financial products that allow their customers to bank with them how and when they want.

We all have our own ways to measure progress, and our own stories about the things that matter to us. Whatever way you choose to measure progress, and whatever your goals, ASB is there to help you get one step ahead.

Contact ASB Bank

• Info on - Bank Accounts
• Info on - ASB Home Loans
• Info on - ASB Credit Cards
• Link to - Mortgage Calculator
• Info on - Business Banking
• Info on - ASB Kiwisaver
• Link to - ASB Blog
• Info on - Personal Loans