Investors take a fresh look at New Zealand

It’s partly the result of both New Zealand and Australia having come through the global financial crisis so well. 

Fiona Mackenzie, Head of Traded Products and Liquidity at NZX, says in contrast to other markets, New Zealand’s listed – and regulated – financial sector has weathered the downturn extremely well, with no company failures that have cost investors.  

 “Our listed, equity and debt sectors are all functioning very well and there have been no bank failures in Australasia. Compare that to the United States, where nine banks have failed already this year.”

Mackenzie returned to New Zealand in early 2009 after more than a decade working in US equity markets. She was struck by the different feel she found on her homecoming.

“Of course the global melt down had a big impact but New Zealand survived it well. Our house is in order and we can be externally focused again. That’s in stark contrast to many economies which continue to grapple with fall-out from the financial crisis.”

Open for Business

New Zealand’s attractiveness as an investment destination will be touted to potential investors from Australasia, Asia and further afield when the first ever New Zealand-Australia Investment Forum takes place in Auckland in March.

Co-hosted by Investment New Zealand and its trans-Tasman counterpart Austrade, the event is designed to give investors a first-hand look at investment opportunities in post-recession Australasia.

It’s part of a wider drive, says Investment New Zealand Director Graham Matthews, to up New Zealand’s desirability as an investment destination.

“New Zealand under performs in investment markets because we haven’t positioned ourselves well. We’ve done a fantastic job of marketing ourselves as a premium tourism destination but haven’t yet matched that in an investment context.

“International investors haven’t disappeared and they’re looking for new opportunities. New Zealand and Australia have a significant advantage at the moment, through the vibrancy and stability of our financial sectors. The message is that we are very much open for business.”

Matthews says New Zealand’s pitch is threefold.

“The first challenge is to get the country on investors’ radars. They might see New Zealand as a holiday destination but few believe we have any bearing on their investment portfolio.”

Advantages like New Zealand’s high global ranking for ease of doing business and stable legal and political systems make a difference, says Matthews, but aren’t enough on their own. Incentives are also important, an area where New Zealand has traditionally been ‘light’ compared with many bigger economies.