Confidence in residential rental property as an investment has overtaken confidence in managed investment, according to the latest ASB Bank Investor Confidence survey.
In the survey’s 12-month history, managed investments have either led or equalled the stakes in response to the question "what type of investment gives the best return"?
For the first time this survey, which shows the quarter to the end of June, reveals residential rental property (20 per cent) edging ahead of managed investments (19 per cent) in the best return perceptions. In the previous quarter the figures were 17 per cent (residential rental property) and 19 per cent (managed investment).
Interestingly though, a separate question shows respondents whose main form of investment was managed investments felt their investment was giving the best return (62 per cent), up markedly from the previous quarter when 51 per cent of these respondents felt their managed investment was giving the best return.
Other aspects revealed in the original "best returns" question show an increase in popularity of direct share investments over the last two quarters (9 per cent to 11 per cent).
Overall, investor confidence has continued to improve with a net 16 per cent of respondents believing their investment in the year ahead would be better than last year. This figure is up from a net 7 per cent in the March quarter. (See graph).
More people saving for retirement
The survey for the June quarter says that the number of people who have started what they regard as a retirement savings plan has risen from 54 per cent to 59 per cent.
The survey, which is based on phone interviews with a random sample of more than 750 people throughout New Zealand, received criticism last quarter. One critic, Retirement Commissioner Colin Blair, questioned the definition of savings. Also there has been some criticism of the questions posed to respondents.
Online broking service launched
Wellington-based sharebroker Direct Broking Ltd has launched its online Internet sharemarket trading service, DirectTrade. Over the past three months DirectTrade has been tested and used successfully by Direct Broking clients. DirectTrade is now available to new clients. The system includes a portfolio management function.
Managing director Nigel Wynn expects Internet trading will grow to account for about 40 per cent of Direct's business.
Anger at the CFP Board
United States financial planners appear to be strongly opposed to the CFP Board of Standards' plans to introduce two new designations.
As reported earlier the board is looking to introduce an Associate CFP designation (an intermediate step to a full CFP known in the US as CFP Lite) and one which would allow firms to be accredited.
At a recent Institute of Certified Financial Planners conference there was widespread anger over the proposals and the way members had found out about them.
Delegates were concerned that the associate designation would just confuse investors, and that people who won the designation were under no pressure to move to a full CFP status.
On the accreditation front, planners are concerned that firms that didn't fully meet the CFP requirements could use the designation.
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