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Home / Business / Personal Finance

Bay investors take big share

Tamsyn Parker
By Tamsyn Parker
Business Editor·NZ Herald·
6 Jul, 2008 05:00 PM3 mins to read

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Bay of Plenty residents are big share investors. Photo / Bay of Plenty Times

Bay of Plenty residents are big share investors. Photo / Bay of Plenty Times

KEY POINTS:

Bay of Plenty residents have the most money invested in the New Zealand sharemarket while Southlanders are more likely to take smaller punts and females in the Taupo/Rotorua region have almost twice as much money invested in shares as males.

Demographic research compiled for the first time has
revealed distinct differences between New Zealand's regions and its sexes when its comes to investing in New Zealand shares.

The information, initially collected around 18 months ago by the Investment Research Group under its data division, is being made public for the first time by a company called Baton.

Baton founder Andre Dromgool left IRG when it's new owner Viking Capital sold its data division to the NZX in 2006 and set up his company in September last year.

As part of the deal Dromgool is able to use the information to offer a high net worth telemarketing service to businesses wanting to market investments such as property or for companies that wish to alert investors about a new rights issue.

"This database is unique and allows us to relay information to a very powerful group of New Zealanders," Dromgool said.

The database focuses on the top 100 biggest individual investors in New Zealand's 200 listed companies, accounting for just over 11,000 investors.

But Dromgool said there were also plans to undertake a breakdown of data for companies and family trusts which often own shares on behalf of individuals such as farmers.

The data reveals that while Auckland has the highest number of investors at 3664 the average amount of money invested in shares per person is far greater in the Bay of Plenty at $1.088 million. The nation's average is $288,846 per shareholder.

Dromgool said the high average reflected Tauranga's wealthier retired population who have flocked to the area over the last couple of decades.

Unsurprisingly the data also reveals poorer areas of New Zealand such as Northland and the West Coast have very low levels of share ownership. Only seven people in Northland are high-level shareholders with 23 on the West Coast.

But a gender breakdown revealed some surprises. Women in the Taupo and Rotorua region were found to have on average twice as much invested in shares as men with the average for females at $197,594 and the average for males at $92,573. But the reverse was true for the Bay of Plenty where the average for men was $1,580,458 and for women was only $254,582.

East Auckland, typically thought to be an affluent area, also had a much lower level of investment in shares by women.

Dromgool won't be using just any telemarketers to target shareholders. As much of the information is specific and has to be read off a script he has hired professional actors including Shortland St star Leighton Cardno, who recently played Dr Adam Heywood, to play the part.

TOP STOCK HOLDINGS

$289,000
Average big NZ shareholders have invested.

$1,088,000
Bay of Plenty average.

* Women in Taupo and Rotorua have twice what men have invested.




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