Confidence in financial markets has increased among New Zealanders investors despite turmoil across the globe last year, according to a survey by Financial Markets Authority (FMA).
The confidence jumped to 65% in 2017 among all respondents from 56% a year ago, the survey found. Investors with a superannuation scheme, managed funds and shares were found to the most confident.
Investor confidence in the markets stood at 69%- its highest level- since the launch of the survey in 2013 when confidence stood at 58%.
New Zealanders’ confidence in effective market regulation rose to 69% from 63% in 2016, the study revealed.
FMA CEO Rob Everett 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.”
Commenting on the rise in investor optimism, Everett stated: “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.”