Can you deliver investors’ return expectations?

By Staff | November 1, 2017 | Last updated on November 1, 2017
2 min read

Canadian investors have average return expectations of 8.6% over five years, reveals a Schroders investor study. (As a Canadian advisor, you can count yourself lucky, because that’s lower than the global average of 10.2%.)

Specifically, 46% of Canadian investors expect returns of 5% to 9%. Another 22% of investors are especially optimistic: a mere 10% to 19% in returns would suit them just fine.

(Annual global average stock market returns in the last 30 years have been 7.2%, using Thomson Reuters Datastream MSCI data.)

Read: How to project fixed income returns

But achieving massive returns might be particularly challenging, given 54% of Canadian investors say they don’t want to take on much risk.

Read: Two top Canadian stocks

Further, investors say their emotions tend to influence financial decisions, giving that sentiment a rating of 6.6 out of 10.

Read: Save clients from emotional mistakes

Encouragingly, Canadians’ number-one priority for their disposable incomes next year is to invest (39%), reveals the study. Of those Canadians, 19% expect to invest in securities, 10% in pensions and 10% in property.

Another 20% of Canadian investors say they’ll leave their cash in the bank or at home, and 18% say they’ll pay off debt.

Read: Buy assets or pay off debt? One makes clients happier

Only 12% are planning luxury purchases.

Canadians also want to learn, with 85% of respondents saying they feel the need to improve their understanding of investments.

Read more survey details.

About the study: Schroders commissioned Research Plus Ltd. to conduct, between June 1 and June 30, 2017, an independent online study of 22,100 investors in 30 countries. Respondents were planning to invest at least €10,000 (or equivalent) in the next year and had made changes to their investments within the last 10 years. staff


The staff of have been covering news for financial advisors since 1998.