According to a recent survey by Kantar Public instigated by the Financial Markets Authority, eight out of 10 New Zealand retail investors have a more favourable view of investing and financial markets after using online investing platforms like Sharesies, InvestNow and Hatch.
The intention of the survey was to better understand the behaviours and intentions of new investors who have started investing in recent years, tapping into almost 2000 investors using platforms in June this year*.
“These online platforms have made it easier for people to access the markets and learn about investing – 34% of investors said they now have a better understanding of markets after using the platforms,” said FMA Chief Executive Rob Everett.
“We’re encouraged to see that most investors have good intentions around how they should invest, with around 80% buying shares or other investments and holding them for the long term.”
The report stated that, almost without exception, investors are positive about their investment journeys and the opportunities that online investment platforms have given them.
In a first, PMG Generation Fund recently partnered with InvestNow and Sharesies, giving their customers access to invest easily in PMG’s latest unlisted commercial property fund offer. Over 1800 new investors invested indirectly from these platforms, proving the power technology has in providing people choices for their financial future.
“PMG offers new investors as much as seasoned investors the opportunity to receive regular and reliable returns from our quality commercial property funds,” PMG Chief Executive Officer Scott McKenzie says of the Fund with a minimum investment amount of around $1000.
“These platforms align with our overall strategy, and we’re passionate about creating value and security for people through property, helping New Zealanders achieve financial freedom. That is why it’s especially great to see new investors using these platforms are thinking of their financial future and actively taking a role in their wealth creation.”
For those surveyed, the main reasons to start investing on one of these platforms were to invest better and grow their money (70%) and have an affordable way to access the stock markets (53%). Other reasons included learning about investing, low interest rates and housing unaffordability.
“It’s great to see such enthusiasm from new investors – they’ve had a great run and seen their investments grow on the back of a big market rally,” said Mr Everett.
“The big challenge is to ensure they are well-equipped to make good decisions when markets head the other way.”
To measure this, the survey looked at whether investors were demonstrating ‘good’ investment behaviours, including making a conscious effort to diversify, read annual reports or company disclosure information, and the small print on investments made. In all, 78% of investors had demonstrated at least one of these behaviours in the last two years.
Overall, losses are seen to be part of learning, and in some cases it leads people to make different (more diversified or less risky) investment decisions.
The research identified four main types of investors (see image above), with Planters representing 42% of investors surveyed. These people are wanting to secure their long-term future by making long-term growth-focused investment choices.
Since 1992, PMG has maintained a track record of stability, continuity and performance. Our proven success through multiple economic cycles means we are one of the most established property funds management companies in New Zealand.
To learn more about other investment opportunities expected this year, contact PMG’s Investor Relationships Team.
Information in this article was obtained through the FMA media release dated 5 August 2021, which can be found here.
Read the full Retail investor platforms research here.
* Research conducted by Kantar Public (formerly Colmar Brunton) of 1997 people using online investing platforms including Sharesies, InvestNow and Hatch, as well as members of the New Zealand Shareholders Association also using online platforms. The margin of error is +/-2.2% at the 95% confidence interval.
** The Product Disclosure Statement for this closed offer can still be found on the PMG website. Property valuations stated as per the value of the most recent independent valuation report held by the Fund per property as at the date of the PDS. Please note, past performance is not an indication of future performance. Prospective investors are recommended to seek professional advice from a Financial Advice Provider who takes into account an investor’s personal circumstances. PMG, and members of the PMG Investor Relationships Team, do not provide advice.
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