Date posted: 06/10/2023

Investor confidence is recovering in 2023

In its fifth year, the Investor Confidence Survey shows that confidence has recovered from 2022 but is not yet back to pre-pandemic levels.

In brief

  • Investor confidence has started to recover from 2022’s fall
  • Auditors remain the number one most trusted group for advancing investor protection
  • Half of investors are looking to increase the scale of their investments in the next year

Chartered Accountants Australia and New Zealand’s (CA ANZ) fifth annual Investor Confidence Survey pleasingly shows that investor confidence has recovered from the sharp fall that occurred in 2022 – but has still not yet reached pre-pandemic levels. 

While the 2022 fears over the ongoing impact of the pandemic and global unrest have declined, concerns of rising interest rates have risen. Yet despite these concerns, half of investors said they were looking to increase the scale of their investments in the next twelve months.  

For the fifth year in a row, auditors remain the most trusted group when it comes to those who help advance investor protection. Analystis, regulators, stock exchanges and audit committees also maintain high levels of trust when it comes to protecting investors. 

The Investor Confidence Surveys, undertaken with the help of the Center for Audit Quality in the United States, provides a window into how retail investors are feeling about capital markets, publicly listed companies, financial reporting and audit, and the groups who look after their interest. It also provides insight into topical issues like sustainability reporting, digital reporting, and the impact of changes in financial reporting.  

These insights help the profession and all the stakeholders in the financial reporting ecosystem make informed decisions on how to best help investors navigate the new and evolving challenges impacting economies and the market.  

The survey showed that investors continue to value climate and sustainability reporting but would have more confidence in the information companies provide if it was prepared and audited in accordance with agreed standards. They still find financial reports complex to understand and are in favour of digital reporting as an aid to cutting through that complexity.  

The information provided by the survey year in, and year out, has shown just how important financial and other forms of corporate reporting, as well as markets, are to investors’ confidence. CA ANZ will continue to advocate for robust reporting and assurance standards to protect the public interest and make sure that investors have the information they need.