MEDIA RELEASE

 

16 August 2023

 

New survey shows investor confidence rising as concerns change

 

Mum and dad investors are looking for new investment opportunities with 50 per cent of respondents to the annual Chartered Accountants Australia and New Zealand (CA ANZ) Investor Confidence Survey looking to increase the scale of their investments in the next year.

 

The survey of Australian retail investors has revealed those intentions to increase investment over the coming year as concerns over interest rates replace 2022’s fears of the ongoing pandemic and global political unrest.

 

The survey ran from 15-29 June 2023 and was completed by more than 1,000 Australian retail investors mostly holding more than $10,000 on the share market, in addition to other investments such as managed funds, property and superannuation portfolios.

 

“After a rough 2022 where confidence plunged due to fears around a continuing pandemic and ongoing political unrest, this survey shows there’s a ray of light shining on both local and overseas markets,” says CA ANZ Reporting and Assurance Leader Amir Ghandar FCA.

 

“Eighty-five per cent of respondents say they have confidence in investing in local publicly listed companies, and 73 per cent say they have confidence in the overseas capital markets,” Mr Ghandar said.

 

“Investors feel it’s a little bit easier to plan for rising interest rates than snap lockdowns and international crises and the unknowns they bring.

 

“We’re not quite back to pre-pandemic levels, but across multiple indicators, investor confidence is holding steady or lifting.

 

“This increase in confidence comes down to a change in risk.  Fears of ongoing pandemics and global political conflict have dropped away, to be replaced by concern about rising interest rates, which in comparison, is a much more contained issue.

 

“Investors now see rising interest rates as the biggest risk to the domestic economy, with 23 per cent saying it’s their main concern, up 13 per cent on last year while, fears around global political unrest and ongoing pandemics have both fallen by 6 per cent.

 

“We can also see that investors are looking to invest in those trusted markets where there’s transparency and reliable, audited information.

 

“Confidence in Australia’s audited financial reports has remained solidly around 90 per cent throughout the four years this survey has been running, and auditors remain the most trusted intermediary when it comes to protecting investors’ interests, followed by regulators and analysts.

 

“It’s in times of uncertainty that audited financial information and the role of financial reporting becomes even more important, to have a firm handle on what you’re actually looking at in an investment opportunity or managing an existing portfolio position,” concluded Mr Ghandar.

 

ENDS

NOTES TO EDITORS: Australian Shareholder Association members available to comment on request.

 

2022 and 2023 comparison tables can be found below.

 

The 2021 Australian Investor Confidence Survey Data can be found here.

 

 

About Chartered Accountants Australia and New Zealand

Chartered Accountants Australia and New Zealand represents more than 135,000 financial professionals, supporting them to make a difference to the businesses, organisations and communities in which they work and live. Chartered Accountants are known as Difference Makers. The depth and breadth of their expertise helps them to see the big picture and chart the best course of action.

www.charteredaccountantsanz.com

 

For more information contact:

Daniel Webster, Public Affairs Manager M +64 27 282 6253 [email protected]

Australia

 

At the current time, how much confidence would you say you have in Australian capital markets (i.e. the ASX)?
		Percentage
		2023	2022
1	Great deal of confidence	12	10
2	Quite a bit of confidence	29	29
3	Some confidence	42	41
4	Very little confidence	15	17
5	No confidence at all	2	3

 

At the current time, how much confidence would you say you have in capital markets outside of Australia?
		Percentage
		2023	2022
1	Great deal of confidence	7	7
2	Quite a bit of confidence	21	17
3	Some confidence	45	44
4	Very little confidence	23	27
5	No confidence at all	4	5

 

 

How much confidence would you say you have today investing in Australian companies that are publicly listed (e.g. on the ASX)? listed Australian companies?
		Percentage
		2023	2022
1	Great deal of confidence	10	10
2	Quite a bit of confidence	32	31
3	Some confidence	43	43
4	Very little confidence	11	12
5	No confidence at all	2	3

 

All publicly listed companies in Australia are required to put out regular financial reports. Before they are published, certain information in these reports is required by law to be audited by an external audit firm. Based on what you know, how much confidence do you personally have in audited financial information released by publicly listed Australian companies?
		Percentage
		2023	2022
1	Great deal of confidence	12	13
2	Quite a bit of confidence	37	37
3	Some confidence	41	37
4	Very little confidence	9	9
5	No confidence at all	2	3

 

 

There are several different players that have roles in helping to advance investor protection. Which of the following are you confident is/are effective in their respective roles? companies?
		Percentage
		2023	2022
1	Independent auditors who audit publicly listed companies	50	51
2	Independent audit committees of publicly listed companies	35	36
3	Financial analysts	39	40
4	Stock exchanges	38	40
5	Financial advisors and brokers	30	25
6	Credit rating agencies	27	28
7	Investigative journalists	27	29
8	Corporate management of publicly traded companies	21	20
9	Government regulators and oversight	38	41
10	Corporate boards of directors	12	10
11	Parliament	5	4

 

In your opinion, what poses the greatest risk to the Australian economy? Australian companies?
		Percentage
		2023	2022
1	Cyber-attacks targeting personal financial information or the capital markets	12	7
2	Global political unrest	19	25
3	Domestic political unrest	5	7
4	Impact of climate change	8	12
5	Impact of COVID-19 and future pandemics	8	14
6	Australian tax policy	6	4
7	Rising consumer debt levels	8	8
8	Rise in interest rates	23	10
9	The growing national debt	10	10
10	Other	2	3

 

 

Are you likely to increase or decrease the scale of your investment in the next twelve months?
		Percentage
		2023	2022
1	Yes, increase	50	NA
2	Yes, decrease	8	NA
3	No	20	NA
4	Not sure	22	NA