Investor confidence up - but not for property

Investors feel more confident, but they have an eye on politicians' plans for their KiwiSavers, new ASB data shows.

ASB has released its latest investor confidence survey, which shows investors expect the best returns to come from managed investments, followed by KiwiSaver, then the house they own and live in.

Many investors said policies around KiwiSaver contributions and the superannuation age would influence their voting decisions. That was particularly true of people aged 30-39.

Senior economist Chris Tennent-Brown said investors were notably concerned about what policies were planned, even with retirement many years away.

"Nearly seven in 10 people aged 30-39 told us these policies could influence their vote," he said. "That tells us long-term financial security is front of mind for many New Zealanders well before they reach retirement."

More broadly, the survey showed net investor confidence rose 14 percentage points to 15 percent in the quarter, exceeding levels typically seen over the past two years.

Aucklanders led the rebound, with net investor confidence jumping 22 percentage points to 26 percent, the highest result for the region in nearly three years.

"It's back to where it's been knocking around... after some of the hits it's taken with the war in the Middle East this year and the tariff liberation day last year, which also knocked confidence right back down."

Managed investments were rated as providing the best returns by 16 percent of respondents, followed closely by KiwiSaver at 15 percent. Own homes were at 14 percent, while public shares and term deposits were both at 12 percent.

Tennent-Brown said the result suggested New Zealand investors were looking through the persistent global uncertainty and focussing on where they thought best returns come from.

"It's encouraging to see investor confidence moving back into more positive territory. New Zealanders have had plenty to digest this year.

"Share market performance was a key positive in the quarter, but improved sentiment for other investments also helped the overall result."

He said the election was having an impact.

"There's still a lot of uncertainty over the rest of the year, which will probably weigh on the mood somewhat, especially with regard to property and KiwiSaver changes, and that's before we get on to the global uncertainty.

"It's pleasing to see that things like the very strong share market performance and a weak New Zealand dollar are all helping to boost the balances for people in managed funds and KiwiSaver, and that's why they are showing up as the place to be for many respondents' investment choices."

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