Canadian investor confidence rises

Canadian investors cheered up a bit at the end of 2011, with a rosier outlook for virtually every asset class, with cash as the sole outlier.

Manulife Financial’s quarterly Investor Sentiment Index survey found investor confidence improved toward fixed income products (up 10 points), balanced funds (+7) and investment property (+6).

Confidence in stocks improved by 4 points, but the overall outlook on equities remains in negative territory at -5. Mutual funds in general rose 5 points, while confidence in cash fell three points to a reading of 19.

When asked about various accounts, confidence in TFSAs rose 11 points while RRSPs saw a boost of eight points. The overall ISI reading increased by 5 points, to 26.

“As 2011 came to a close, Canadians were clearly finding reasons to be more optimistic about their investment options,” says Paul Rooney, president and CEO of Manulife Canada. “A five point increase in investor confidence will not turn things around overnight, but it is a positive sign we ended the year moving in the right direction.”

Household debt remains a front-burner issue for 2012, with roughly 20% of Canadians saying this was their top concern, and more than a quarter said reducing household debt was their top financial resolution.

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Saving for retirement was the primary concern for 16%, and 12% have resolved to save more for retirement.

The fear of falling investment values was top of mind for 13%, while 11% of respondents were worried about their job security.

Asked where they expected to be financially in five years time, only six in 10 said they thought they would be in better shape. Canadians between 18 and 29 years of age were most optimistic, with 92% expecting to be better off, while optimist trended downward with age.

Staff

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