Friday saw fund managers AMP Capital Investors specifying that there is a good chance that New Zealand's recession has come to an end. However, it did give a warning that it will take some time for a return to strong growth.

At a briefing on its quarterly result, Jason Wong, AMP Capital's head of strategy, said: "On balance, we think the recession is pretty much over."

As of now, New Zealand is caught up in a recession which started in the beginning of 2008. Most analysts hold a viewpoint that there would be not much recovery in the fourth quarter because of unemployment and subdued consumption.

The interest rate by the Reserve Bank of New Zealand has been cut rate by 575 basis points to 2.50% since July last year. However, in June the central bank paused, judging that the economy will climb out of its recession soon.

According to Wong, it is indicated by business and consumer confidence, retail sales and housing market that the economy is in a bottoming-out phase already, but an economic recovery is likely to ensue well into the next year.

He did specify that there are some risks, like the strong New Zealand dollar, which has gained around 15% in the past three months.

He said: "It's not all good news. Obviously some factors like the currency will hold back the strength of the recovery."

It should be noted that AMP Capital still prefers global equities to New Zealand equities.

"New Zealand shares are relatively expensive compared to global counterparts and therefore offer less upside in a world of better return opportunities," said Wong, who manages NZ$10.8 billion of funds.

The AMP's portfolio position is underweight income assets and its main call is overweight global shares.