‘Mum and dad’ investors face inflation head on: CA ANZ survey

The results of Chartered Accounts Australia and New Zealand’s (CA ANZ’s) latest Investor Confidence Survey found the confidence of retail investors has risen compared to last year, despite persisting inflationary pressures and market volatility.

The number of respondents with ‘some or more’ confidence in domestic capital markets surged by four per cent to 87 per cent compared to the last survey, well ahead of the 78 per cent that said they were ‘some or more’ confident in overseas capital markets.

“Confidence in domestic publicly listed companies was still higher, with 90 per cent of respondents expressing some or more confidence, up five points on last year,” CA ANZ Reporting and Assurance Leader, Amir Ghandar FCA, said.

“Fifty-four per cent of respondents said they would increase their investment in the next 12 months, compared to just seven per cent who said they would scale back. Improvement in personal finances was the top reason for optimism, with confidence in the ASX not far behind.

“Of course, this is a survey of mum and dad investors who are looking at macro trends, rather than day traders whose confidence might bounce between rock bottom and sky high in a day, or an even hour.

“Overall, we can see that retail investors have confidence in the markets, and the protection that independent auditors deliver.”

The survey also confirmed that independent auditors have helped grant retail investors more confidence to face economic and political uncertainties head-on.

“In tumultuous economic and political times, investors are looking for a clear, reliable view into their investments and they trust independent auditors’ reports to assure this view, alongside financial analysts, stock exchanges and government regulators,” Ghandar said.

“It’s notable that 90 per cent of responding investors have confidence in audited financial reports, because audit is the unsung hero when it comes to assuring reliable and trustworthy information to businesses, investors, journalists and market observers.

“While Reddit’s wallstreetbets and various discord channels may be the source du jour when it comes to investing, it’s audited financial reports that provide the bedrock for good decision making.

“The challenge for auditors is to make their reports more accessible, through improved digital reporting, so that retail investors can be more informed, whether investing locally or globally.”

This is the sixth survey conducted by the CA ANZ and completed by over 1,000 Australian retail investors, most of them with more than $10,000 on the share market as well as other investments including managed funds, property and superannuation.