Tower Investments says the Government has to make sure it strikes a balance between retail and financial institutional investors who want to buy shares in partial floats of state-owned assets.
New Zealanders buying shares in the partial sale of State energy companies will be given bonus shares if they hold on to their original investment for about three years.
Tower Investments chief executive Sam Stubbs says he's not surprised that the bonus scheme is focused on individual investors rather than wholesale investors.
He believes the Government has had to draw a line under individuals otherwise it could be seen to be favouring institutional investors if the scheme was extended to them.
Mr Stubbs says a bonus scheme is a proven model in other countries and it will encourage individuals to hold onto their shares.
It's likely KiwiSaver providers will be buying stock and so those who don't invest, but are in KiwiSaver, will end up indirectly holders of these shares, Mr Stubbs says.