Investor confidence is variable in 2024
In its sixth year, the Investor Confidence survey shows Australian investors remain confident, but New Zealand investors are concerned about the NZ economy.
In brief
- Auditors remain the number one most trusted group for advancing investor protection.
- Investors see inflation as the greatest threat to the AU/NZ economies.
- Half of the investors are looking to increase the scale of their investments in the next year.
In its sixth year, our Investor Confidence survey sought the views of more than 1,500 retail investors in Australia and New Zealand to discover how they navigate continued uncertainty in the market.
The survey is an important tool for evaluating the effectiveness of local and global markets and economies. The insights into retail investors’ views helps the profession and other stakeholders in the corporate ecosystem understand what needs to be done to ensure investors have the information and confidence to make informed decisions amidst uncertainty.
In New Zealand, retail investors have lost some confidence in the domestic capital market but conversely, their confidence in overseas markets has increased. The drop in confidence in the New Zealand economy seems to be driven by high concerns about inflation, which is viewed as the greatest risk to the New Zealand economy.
In Australia, the good news is that, despite the uncertainties, the confidence of retail investors in both the Australian and global economies have increased, returning to the levels seen prior to the pandemic. Investors are concerned about inflation, viewing it as the greatest risk to the Australian economy.
Despite the differences in confidence levels about the economies, over half of the investors in both nations plan to increase their investments within the next year.
Investor confidence in audited financial reports produced by public companies remains strong. Survey results year after year show independent auditors retain their position as the most trusted group when it comes to investor protection and market integrity, followed closely by analysts, stock exchanges and regulators. However, investors remain concerned about the complexity of financial reports and support the adoption of digital financial reporting.
Retail investors continue to value climate and sustainability information, believing that companies have a responsibility to address the impact of climate change and that it will impact profits. They also want climate change and sustainability information to be prepared and audited using agreed standards.
Despite challenging times, the confidence of retail investors highlights the value of auditors, standard setters, regulators and those who prepare financial statements, in providing reliable information to inform investor decisions. CA ANZ will continue to work to ensure that retail investors receive high-quality reliable information that responds to their needs now and in the future helping to keep our markets and economies strong.