AMP changes outlook

AMP Capital New Zealand is neutral on stocks, instead holding more cash, foreign currencies and alternative growth assets.

"The factors shaping the outlook remain the same, including lower net migration, slower residential construction, slowing house price inflation, strong growth in labour income, robust business investment and a positive fiscal impulse in 2018 and 2019," the fund manager said in its most recent update.

"We are not adding risk to diversified portfolios, and prefer to position for moderately lower returns in early 2018 rather than running the risk of incurring steeper downside in the event of some kind of shock to investment markets," it said. "Retaining a reasonable cash allocation provides flexibility to lift our holdings of other assets once greater value emerges."