- 51% of Australia's adult population, or 7.4 million people, own shares either directly or indirectly through a managed fund or self-managed superannuation fund (up from 50% in 2002).
- This consists of 39% of Australia's adult population, or 5.7 million people who own shares directly (up 2%)
- The proportions of both men and women who own shares directly have increased since 2002. In 2003 44% of males and 35% of females own shares directly.
- The incidence of share ownership continues to increase with age. Compared to 2002, there has been an increase in direct ownership of those aged 35-to-54. The trend among those aged 55-plus continues, with one in two owning shares in their name. The only decline has been among those aged 18 to 24.
- The high incidence of share ownership nationwide appears to have been maintained, with NSW, QLD and SA all reporting significant increases.
- Investors are again more likely to have more stocks in their portfolio - from 3 to 7 since 1999. 51% have at least 4 companies in their portfolio in 2003, compared to 26% in 1998.
- The average portfolio value has increased 14% (since 2002) to $40,800.
- Shareholders are trading more often (average 6 times a year - up from 5 in 2002), with higher-valued parcels ($10,650 an increase of 20% since 2002).
- Newspapers continue to be the most popular main source of advice on shares (22%). There has been a decrease in investors regarding their financial planner to be their main source (19% down from 22% in 2003), and an increase in those seeking such advice from their broker (from 10% in 2002 to 14%).
- In 2003, 50% of direct investors intend to purchase shares in the next 12 months - a significant increase from 40% on the year before.
Carried out in November 2003 among a large sample of 2,402 adult Australians randomly selected from across the country, the SOS provided a detailed snapshot of the nation's shareholding ranks, measuring their numbers, circumstances, behaviour and attitudes.
The overall share ownership levels showed a slight improvement on the last year's headline figures, which were themselves impressive enough. An estimated 51% of the adult population own shares - the equivalent of 7.4 million people. This includes both those who hold them in their own name and those who hold them indirectly through, say, a self-managed super fund or managed investment fund.
Those holding the shares directly amount to 39% of the population, or 5.7 million people. In both cases though, the figures are slightly higher than the late-2002 SOS, conducted when the market was still experiencing a general bear-market lull.
These investors are spread evenly across the states, and more likely to be in the cities, and are more likely to be male. They tend to be aged 35-54, although older Australians are wellrepresented. The youngest age-bracket surveyed, those aged 18-24, evidenced a slight decline in ownership levels, perhaps prompted by the focus on the investment-property activity.
They are increasingly using the Internet to research their investments, buy shares and track their holdings - and they are monitoring those investments far more often. The ASX website asx.com.au remains a key source of information, as does the financial press.
The underlying SOS results provide encouraging detail to suggest a subtly changing market of investors that is growing more experienced and, arguably at least, smarter at it. Diversification is always a key consideration for investors and we now see 28% of shareowners hold stocks in eight or more companies - triple the number reported in 1998. On average there are seven stocks in a typical portfolio - still not sufficient, although better than the average of three recorded only five years ago. The average portfolio is valued at $40,800, up 14 % on the previous year.
Equally, their trading activity is improving steadily. On average those with a direct investment bought or sold six times in 2003, up by one from the previous year. The average value of those share parcels was $10,650 - up a significant 20% on the previous year.
Announcing the results, ASX Chief Operating Officer Colin Scully said the survey highlighted not only the fact that the Australian market has performed most favourably by comparison with international markets, but also that the evolution of sharemarket retail participants through varying market conditions was progressing.
"This Share Ownership Study reveals a continuation of trends identified in previous surveys: shareholders are more interested, more engaged, slightly busier and more informed. It is encouraging to see this continued progress." Mr Scully said.
"What is particularly noteworthy, and encouraging, is that these trends continued following a period in which there was a general bear-market lull in terms of both overall market valuations and some indicators of trading activity. Many investors would not have experienced that before so it is heartening that they appear to have not only remained in the market, but to have increased their level of engagement."
"For its part ASX is determined to use its investor education programs to build on that accumulation of experience and knowledge to ensure that investors new and old are able to take advantage of the many opportunities the market provides," Mr Scully said.
Other notable findings of the Share Ownership Study included an increase in share ownership spread fairly evenly across the states (but demonstrating particular gains in New South Wales, Queensland and South Australia). Those with higher education or on higher income were proportionately more likely to own shares and to have increased their holdings.
The slight increase in on-market activity built on progress of previous years. Investors traded on average six times a year, and in general they tended to trade parcels of higher value. This was highlighted by the decrease in sub-$5,000 share parcels traded, and by the 20% increase in the value of the average transaction - to $10,650 for each trade, near double that of four years ago.
"In general the investors surveyed felt positive about investing in the market, not only regarding the opportunities they believe are there, but also in terms of how the market operates. A large and increased number of respondents believed the market is well-regulated - an indication of investor confidence in the overall system. High integrity is a critical foundation for any successful market and therefore this finding is as important to ASX as anything else revealed in today's survey," Mr Scully said.
Click here for 2003 Australian Share Ownership Study presentation.
A full copy of the Share Ownership Study 2002 is available on www.asx.com.au
