A recent survey has revealed increased confidence in the financial markets despite major disruptions in world events over the last year.
The
FMA survey found that the Kiwi public’s confidence in the markets has risen significantly from 56% in 2016 to 65%.
Meanwhile, investor confidence has reached 69% - the highest level since the survey started in 2013; and confidence in effective regulation of the markets has risen from 63% last year to 69%.
“Since the survey started five years ago the portion of investors who said they were not confident has shrunk from 32% to 20%,” noted
Rob Everett, FMA chief executive.
“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.”
The survey showed that confidence among people with investments had the sharpest rise – the most confident of which were investors with a superannuation scheme (81%), managed funds (80%), and shares (78%).
Everett said that sentiment had typically been a huge factor in the confidence scores.
“Prior to 2015, confidence built quite steadily and then, with market ructions last year, it dipped,” he said. “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.”
The survey also found that 51% of investors in bonds and 51% in KiwiSaver found the investment materials they receive helpful in making informed decisions – however, this was less when compared to people investing in shares (67%), or managed funds (65%).
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