Canadians generally say they kept positive about investing in the past quarter, despite daily news about volatile equity markets, rising gas and food prices plus U.S. sub-prime lending woes, according to a national poll for Manulife Financial, Canada's leading insurance and wealth management company.
The 38th quarterly Manulife Investor Sentiment Index gained two points to reach +24 in late June, after a five-point drop in the previous quarterly poll in March.
"We're seeing very consistent responses from Canadians, who suggest they're adjusting in stride to daily events," said Paul Rooney, President and CEO, Manulife Canada. "In our latest poll we do see some shifts -- in particular toward cash and specific funds, and away from investment real estate. Yet Canadians continue to show strong interest in mutual and segregated funds, with only stocks still in negative territory."
The survey of 1,000 Canadians by Maritz Research in late June found seven among 10 investment categories and vehicles gained ground from the previous March poll.
"We always encourage investors to work closely with their own advisors, particularly given short-term changes in the economy and markets," said Mr. Rooney. "That helps them balance their guaranteed versus variable investments, as well as stay focused on their short- and long-term goals."
Manulife serves more than one in five Canadians with a wide range of financial services and products, "and among our key objectives is to help them make better financial decisions," added Mr. Rooney. "Depending on their own personal goals, some Canadian investors will naturally adjust to protect or continue to grow their investments."
The overall index
Since its launch in 1999, the Manulife Investor Sentiment Index has remained in positive territory overall. It peaked at +35 in early 2000, but fell to a low of +11, in December 2001. During the past two years, the index has remained near six-year highs and above +20.
The quarterly index monitors how Canadians say they feel about investing in 10 different categories and vehicles. The index reflects the percentage of those who say they believe it is a good or very good time to invest minus those who feel the opposite.
Four of six investment categories gain ground
Real estate was the only investment category to lose ground in the recent survey, with investment property and their principal residences both losing some support from earlier this year.
After rising 12 percentage points in March, investment property registered the strongest drop in June of any category, by falling 11 percentage points. Principal residences kept their place as the most popular investment category - yet support for investing in their own home also eased two percentage points. -- www.cnxmarketlink.com
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