New Zealand FMA survey: Investor confidence bounces back


Major disruptions in world events over the last year have not dented New Zealanders' confidence in financial markets

The Financial Markets Authority (FMA) released its annual survey into the public's attitude to financial markets. The survey shows that confidence has risen significantly to 65% among all respondents, from 56% in 2016.

Investor confidence in the markets has reached its highest level (69%) since the FMA started the survey in 2013, when the score was 58%. Confidence in the effective regulation of the markets has improved to 69% from 63% last year.

Rob Everett, FMA Chief Executive, said:

"Since the survey started 5 years ago the portion of investors who said they were not confident has shrunk from 32% to 20%. All these scores show we are starting to see a shift in the public's historic mistrust about markets and financial services. Investors seem to have started paying attention to the presence of regulators, as well as ripples from world events, when expressing confidence.

Confidence rose most sharply among people with investments. Investors with a superannuation scheme (81%) managed funds (80%) and shares (78%) were the most confident"

Mr Everett said that sentiment had typically been a big ingredient in these confidence scores.

"Prior to 2015 confidence built quite steadily and then, with market ructions last year, it dipped. While market performance has been broadly positive this year, there's been plenty of upheaval and uncertainty from Brexit and other international events.
Despite these issues, confidence seems to have been more resilient. One of the factors influencing perceptions is likely to be the transformation of the regulation of financial service providers, completed in December 2016.
We hope to see a continuing trend of investors retaining confidence in the conduct within, and integrity of the markets, even if the performance of their investments goes up and down.

Over half of investors find the investment materials they receive helpful in making informed decisions. The scores are much higher for people investing in shares (67%) or managed funds (65%) than they are for investors in bonds (51%) or KiwiSaver (51%).

Considering managed funds and KiwiSaver have similar characteristics and both are licensed managed investment schemes, there's clearly some improvements that could help make KiwiSaver communication materials more useful for investors. Good conduct includes ensuring your customers are fully-informed about the risks and benefits of a product and they understand how market performance and costs impact the final outcome," said Mr Everett.

One of the FMA's statutory objectives is to promote the confident participation in NZ's markets. The FMA commissions and publishes this survey every year as part of its efforts to measure levels of confidence in financial markets. The survey also tests the levels of confidence in the effective regulation of the markets.

Vienna Stock Exchange attracts two more internatio...
GBP/USD Forecast: any recovery attempts might now ...

Related Posts

 

Comments

No comments made yet. Be the first to submit a comment
Already Registered? Login Here
Guest
Wednesday, 17 July 2019
 
     
 

Latest Spot Rate

 
17 July 2019
Oil Mixed After EIA Report Shows Large Drawdown - MarketPulseMarketPulseHome/CAD/Commodities/Currency/EUR/Market Pulse/USDShare 0Oil rose on Wednesday after the release of the Energy Information Administration (EIA) weekly crude inventories report s...
17 July 2019
Wage growth hits 11-year high amid lowest jobless rate since1974 and record employmentBut employee numbers fall at steepest rate since 2011 and jobvacancies fallSurvey data signal further weakening of job market in JuneThe official UK labour market d...
17 July 2019
Treasury yields slide after Trump casts doubt on trade deal - MarketPulseMarketPulseHome/Forex News Round Up/In The News/Indices/Yield and IndicesShare 0U.S. Treasury prices rose early Wednesday, pushing yields lower, after resurfacing fears around ...
17 July 2019
Canada: Consumer Price Index, June 2019 - MarketPulseMarketPulseHome/AUD/CAD/CHF/CNH/EUR/Forex News Round Up/GBP/JPY/MXN/NZD/SGD/USDShare 0The Consumer Price Index (CPI) rose 2.0% on a year-over-year basis in June, down from a 2.4% increase in May, ...
17 July 2019
Canadian heavy crude surges as crude-by-rail shipments pick up - MarketPulseMarketPulseHome/AUD/CAD/CHF/CNH/EUR/Forex News Round Up/GBP/JPY/MXNShare 0Heavy Canadian crude prices narrowed to the smallest discount against U.S. benchmark futures since ...
How It Works | About | Contact | Privacy Policy | Forex Marketing
© 2009 - 2019 Forex Forum. All Rights Reserved. Risk Disclaimer: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Past performance is not indicative of future results. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.