A steady inflow of cash from Kiwisaver accounts is being singled out as one of the factors behind a relatively resilient performance from domestic shares in the face of faltering global markets.
The NZX 50 is down 3% since its peak in early May, compared with falls of 7% on the Australian market and 10% in American shares.
Tower Investments chief executive Sam Stubbs estimates $1 in every $3 being invested in shares by Kiwisaver managers is going to the domestic sharemarket.
He says Tower has reinvested significant amounts of money from overseas in the past six months because it believes Kiwisaver will continue to drive up demand for New Zealand shares.
JB Were says the safe haven effect is driving the interest rate on New Zealand Government debt to record lows.