Fund managers predict pick-up

The latest Aon Hewitt Investment Forecasts survey, taken during October, found short-term growth expectations for the New Zealand market had declined since the previous survey in August.

New Zealand equities, which have grown by 25% over the past year, are now expected to return 6.6% over the next year, down from 7.5% in August. 

Expected property returns in the year to September 30 next year are 5.5%, down from 6.1% in the August survey.

But the outlook for international equities has improved, with an average forecast of 6% in the latest survey, compared to 4.8% three months earlier.