By Amanda Morrall
New Zealand investors appear to be keeping a stiff upper lip through the events in Eurozone, according to the latest ASB Investor Confidence Survey.
The third-quarter report gauging the mood of investors found that confidence reversed a Q2 fall, climbing three points to the end of September.
Jonathan Beale, head of private banking and wealth management, said it remained uncertain whether confidence would retreat again given the ongoing dramas in Europe.
“It appears that Kiwi investors have stayed calm amid the threat of European government defaults and a European banking crisis. It remains to be seen whether the evolving situation in Europe will impact local investor confidence in the coming months,” said Beale.
Despite the Reserve Bank signalling a lingering low-interest rate environment, term deposits remain top of the pops with investors.
For the sixth consecutive quarter, they proved the most popular investment class, with a total of 18 percent of respondents saying they believed they would give the best returns.
Beale said that reflected Kiwi's traditionally low risk attitudes
What was more surprising was Kiw Saver tieing rental property for second place in terms of perceived superior returns, said Beale. He said it was the highest ranking KiwiSaver had achieved since the ASB's investor confidence survey began.
KiwiSaver has also climbed the scales as a retirement saving vehicle, according to Beale.
The survey found that almost half of respondents, a record 47%, are using KiwiSaver as part of a saving platform.
Further, out of those using or intending to use KiwiSaver, a total of 64% indicated it would be their primary source of retirement savings, another first in terms of survey results.
Meanwhile, rental property sunk to its lowest level of popularity since the third quarter of 2002.
“The effects of the property slump still appear to be taking the shine off rental property investments, despite the current low interest rates,” said Beale.