The New Zealand Financial Markets Authority (FMA) has released its annual investor confidence survey, showing that investor confidence remains surprisingly strong despite the stock market crash caused by COVID-19.
25 June, 2020 | AtoZ Markets – FMA announced an annual investor confidence survey conducted between May 5 and May 14 during the Level 3 lockdown period. According to the FMA survey, the volatile financial markets and stock market slump caused by the COVID-19 seem to have not reduced investor confidence. Rob Everett, FMA Chief Executive, said:
“It’s pleasing to see confidence remaining steady over the past 12 months given the market conditions. Further, the level of confidence in regulation shows people are reassured that New Zealand is a good place to invest their money. And there are protections for investors.”
New Zealand Investors Did Not Panic Amid COVID-19
The survey is based on responses from 1,003 New Zealanders and also asks how confident participants are about market regulation. As a result, confidence increased by 60% to 68% in 2020. The investor situation is fairly stable for the most common forms of investment. But there are significant changes for less common investments, including residential real estate investment and “other” superannuation schemes.
The shareholding ratio of stakes declined sharply (9% and 8% respectively in 2020). The share of individually purchased bonds and participation in peer-to-peer lending doubled in 2020 (6% and 4% respectively).
The survey also found that about 82% of people made some kind of investment with KiwiSaver. Awareness of the FMA’s job as a regulator is slightly higher at 37% on effective regulation of financial markets.
“For the survey respondents who increased their investments in the past 12 months, the most popular were buying shares or funds, the survey showed. Confidence scores across the survey were highest for those with these investment types,” the FMA said in the statement.
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