The Ministry of Economic Development was particularly interested in better understanding behaviour in relation to superannuation, life insurance, shares and other securities products. Questions not specifically related to financial knowledge were asked to find out the demographics of participation in these markets, and the advice that investors sought and valued before making their investment decisions.

Superannuation and insurance

The results here tended to confirm what might be expected.

• More males (71%) than females (62%) have or have had superannuation or life insurance.
• Greater levels were also observed among higher income households, among individuals aged 30-54 years, and those who own their own homes.

Advice

• 58% of those who have, or have had superannuation or insurance got advice in advance of signing the contract.
• The main sources of advice were the insurance company agent or advisor (38%), an independent financial planner (36%) and a relative or friend (36%).
• There was a good level of satisfaction with the advice received. 85% found the advice obtained from the insurance company very useful or quite useful. The percentage for advice obtained from an independent financial planner was considerably higher at 94%.

Collective investment schemes and debt securities

• 28% had invested or seriously considered investing in managed funds, contributory mortgage schemes, bonds, debentures or other debt securities. The main demographic trends were much the same as noted for shares below.
• 63% of the 28% had got advice
• People under 35 years of age were less likely to have got advice.
• The predominant source of advice was a specialist investment advisor (56%).
• 26% obtained advice from a relative or friend, 16% from an accountant, 14% from a share broker, 9% from a bank and 4% from a lawyer.
• 83% found the advice from a specialist investment advisor to be very useful or quite useful.

Shares

• 20% of respondents currently own shares. The ownership rates were significantly higher for those aged 45-74, those who owned their own home, having no mortgage, having no children or no children at home, household income of $100,000 or more and with a postgraduate qualification.
• 27% of the 80% who currently did not own shares had done so in the past. The main reasons for selling were: a need for the money (38%), concern that the share market was too risky (27%), better returns available through other investments (11%), because they lost money (9%) and complexity of the share market (5%).
• 30% had bought or seriously considered buying shares through a public offering. Males, those aged 40-54, a household income of $100,000 or more and those with university qualifications were more likely to have owned
• 37% of the 30% got advice before making their decision. This percentage is substantially lower than for superannuation/life insurance, collective investment schemes and debt securities.
• The main sources of advice were relative or friend (36%), share broker (22%), specialist investment advisor (21%), accountant (21%) and lawyer (12%).

Obtaining written information about investments

Three quarters of all respondents answered yes to at least one of the categories of questions in this section of the questionnaire.

• 65% of this group of investors and potential investors said they had obtained written information in advance. 64% had obtained a prospectus, 56% obtained a brochure and 46% an investment statement.
• Those who had obtained an investment statement were asked how useful were the 10 categories of information that are required to be included in an investment statement. All categories were regarded as very useful or quite useful by at least 87% of this subset of respondents.
• The percentage rating a category 'very useful' varied from 46% to 76%. The highest ratings were given to information about what the risks are (76%), what the returns are (75%), who to contact with enquiries (74%) and what the charges are (76%).

ANZ
PRIVATE BAG 92210
AUCKLAND, NEW ZEALAND
www.anz.co.nz

RETIREMENT COMMISSION
LEVEL 3, 69-71 THE TERRACE
PO BOX 12-148
WELLINGTON, NEW ZEALAND
www.retirement.org.nz
www.sorted.org.nz