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Asset returns and the investment choices of New Zealanders

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This article introduces a new set of estimates of gross nominal returns since 1989 for a broad range of asset classes relevant to New Zealand investors. Risk and return characteristics of the assets are presented, and aggregate trends are discussed. However, many other factors may be relevant to the investment choices of New Zealanders. Investors are interested in realised rather than gross returns, directly determined by a range of factors including tax treatment and the impact of leverage. Attitudes to risk are a key determinant of investor behaviour, given that future returns are highly uncertain – providing grounds for portfolio diversification. Personal circumstances are also important and vary considerably between individuals.

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  • Elizabeth Watson, 2012. "Asset returns and the investment choices of New Zealanders," Reserve Bank of New Zealand Bulletin, Reserve Bank of New Zealand, vol. 75, pages 26-34, September.
    • Handle: RePEc:nzb:nzbbul:sep2012:05
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    File URL: http://www.rbnz.govt.nz/-/media/ReserveBank/Files/Publications/Bulletins/2012/2012sep75-3watson.pdf
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    1. Paul Bloxham & Christopher Kent & Michael Robson, 2010. "Asset Prices, Credit Growth, Monetary and Other Policies: An Australian Case Study," RBA Research Discussion Papers rdp2010-06, Reserve Bank of Australia.
    2. John H. Cochrane, 2011. "Presidential Address: Discount Rates," Journal of Finance, American Finance Association, vol. 66(4), pages 1047-1108, August.
    3. John H. Cochrane, 1999. "Portfolio advice of a multifactor world," Economic Perspectives, Federal Reserve Bank of Chicago, vol. 23(Q III), pages 59-78.
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    1. Elizabeth Watson, 2012. "Risk, return, and beyond: A conceptual analysis of some factors influencing New Zealanders’ investment decisions," Reserve Bank of New Zealand Analytical Notes series AN2012/07, Reserve Bank of New Zealand.

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