A record level of investors expect better returns this year than last year, after near-70 per cent gains from shares and property in recent years.
Wednesday, April 20th 2005, 8:46AM
by The Landlord
The latest ASB Investor Confidence report shows a net 24 per cent of those surveyed expect the net return from investments to be better this year than last year, up 3 per cent.
The same peak was reached at the end of 2003, but ASB head of relationship banking James Mitchell said of the latest rise in confidence: "We believe this to be somewhat optimistic."
The high confidence levels reflected strong returns from property and shares - both up about 70 per cent in recent years, he said - and confidence in the economy.
But shares are lowly rated in the survey and going further out of favour.
Term deposits are gaining popularity, especially with higher interest rates, reaching about 7 per cent in some cases.
Investors are putting their money into term deposits rather than managed funds, superannuation or life insurance, according to figures compiled by a bank interest rate tracking company.
More than $67 billion was invested in bank and non-bank institutions at the end of December, up 12.3 per cent on a year earlier.
