KEY POINTS:
KiwiSaver and higher interest rates for savings have helped push a survey of investor confidence to a record high.
The ASB investor confidence survey has hit a net 29 per cent positive in the June quarter, its highest quarterly level since the survey began in 1998, and 4 per cent higher than the previous quarter.
Confidence has been rising since the start of 2006. "The [June] quarter was very much one of two halves," Jonathan Beale, head of investment services at ASB, said.
"The RBNZ's efforts to slow the economy, rein in inflation and curtail the rising dollar appear to be triggering more caution about future investor returns."
Despite rate rises, rental property investments were showing "remarkable resilience", the most favoured investment vehicle this quarter at a net 22 per cent.
Cash investors were enjoying the highest short-term interest rates since the first half of 1998. Term deposits had climbed, up a net 3 percentage points to 14 per cent.
Confidence also improved for shares, up 3 points to 12 per cent, but commercial property and small businesses slipped to 6 per cent and 4 per cent.
KiwiSaver appeared to have been a major confidence booster, with 90 per cent of respondents now aware of the scheme, compared with 77 per cent in the March quarter.
Of those who were aware, 30 per cent intended to take up the scheme, but 37 per cent had not yet made up their minds, prompting the ASB to warn that goodwill towards KiwiSaver may have peaked.
"It will be very interesting to see if the next survey shows that, after greater IRD and KiwiSaver Scheme provider publicity, New Zealanders will either already have joined KiwiSaver or have a firmer idea of whether they are likely to participate," Mr Beale said.
Interest was also likely to grow as the April 2008 start of compulsory employer contributions loomed.
- NZPA
