Investing Insights with Tony Alexander: Changing investment choices
In this new monthly series, independent economist Tony Alexander gives you insight into how Kiwis are managing their personal wealth.
Tony Alexander
Independent economist
Each month, Tony surveys over 25,000 Kiwis to find out what they’re investing in and how they’re investing in it. He then analyses their responses and reports on how investment preferences are changing over time.
The findings give you a look into people’s thoughts on different shares, types of property, active vs passive fund management, whether to use an advisor or an app, which countries to invest in, and much more.
A bit about Tony
Tony’s been speaking and writing about the New Zealand economy for over three decades. Until late 2019, he was the chief economist at BNZ—a role he held for nearly 25 years! Nowadays, he continues his analysis through his own surveys and publications.
Below, youʻll find a summary of the findings from the latest survey (for the period 24-27 January), as well as the full Investing Insights report.
Market jitters have mild effect on wealth management
People are still planning to add to their investments outside of residential property, though sentiment is starting to cool. Several factors are at play here, including higher interest rates, rising inflation, and a decline in global share prices.
Shares are the most favoured asset (by 54% of investors) to add to an investment portfolio—either directly, or through managed funds and exchange-traded funds (ETFs).
There looks to be a slight shift in demand (lower) for crypto underway. This downward trend also applies to investing in managed funds and start-up businesses.
Those who still plan to buy property make up 26% of respondents. For those planning to invest in commercial property (15%), about half are looking at industrial or warehousing, and office accommodation features way less.
Reducing debt is also on people’s minds, and is likely to feature more as interest rates rise.
Share purchasing trends
Exactly 45% of investors say they will buy shares themselves, rather than through a broker or fund manager. And 44% of people buying shares themselves intend to use an app.
While we present survey respondents with a range of sectors, there are no clear trends as to which sectors they prefer to buy shares in—though energy, health, and tech do feature.
Despite lower world economic growth forecasts, Omicron disruption, and rising interest rates, it’s heartening to see people keeping a long-term investment focus. For those investing in managed funds, 43% still favour growth funds, and 24% aggressive funds.
Which countries people choose to invest in could change as economic events unfold. For now 36% of respondents favour New Zealand, 28% Australia, 27% the US, 4% the UK, and 11% the world in general.
Download the report
For a deeper dive, download the full Investing Insights report [PDF, 1.7 MB].
Investing Insights is conducted in partnership with Tony Alexander. All analysis is Tony’s and not influenced by Sharesies.
Ok, now for the legal bit
Investing involves risk. You aren’t guaranteed to make money, and you might lose the money you start with. We don’t provide personalised advice or recommendations. Any information we provide is general only and current at the time written. You should consider seeking independent legal, financial, taxation or other advice when considering whether an investment is appropriate for your objectives, financial situation or needs.
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