Briefly: ‘Cdns plan more investments’ and more news

Canadians are not shying away from investment opportunities.

According to a national survey, even though 60% of investors lost money in the past year, most feel that the economy is on the rebound and therefore they plan to invest more but it might be with a different firm.

Conducted by Maritz Research Canada, the poll surveyed 500 Canadians with at least $75k in investible assets, and of those, 30% indicated they were unlikely to maintain or increase their level of investment with their primary firm. Even among those somewhat satisfied with their firm, 40% said they would not or might not maintain or increase their investments with that firm.

“Clients don’t just want to be satisfied, they want to be delighted,” said Rob Daniel, managing director of Maritz Research Canada. “Firms must be vigilant about monitoring the behaviours and attitudes of their best clients, understanding that many are loyal through inertia rather than from positive attitudes and experiences that will truly keep them from looking into other options.”

Canadians who were invested more heavily in GICs and Term Deposits were most likely to earn money on their investments through the market downturn. The Maritz Investor survey says that these more risk-averse investors often channel their investment portfolios through Banks or Credit Unions and these institutions may be in the best position to grow their clientele in the near future. 70% of investors agree that less risky investments are currently the best strategy.

“What we’re seeing is that Canadians are not shying away from investing because of the rough year they’ve had, however they are rethinking their strategies in the market. We predict a continued flight to safety among Canadian investors, which bodes well for Banks, Credit Unions and others who traditionally attract more risk-averse clients,” said Daniel.

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Hartford International Equity Fund celebrates first anniversary

A year after Hartford Investments launched an international equity mandate, Hartford International Equity Fund is the number one fund in its category. The fund’s one-year return of 28.8% far outpaced the peer group average return of 2.7% and the MSCI EAFE Index return of 4.2%.

“People love to lump managers into categories – value, growth and so on – but we’re not statistically driven value investors,” said fund manager manager Richard Jenkins. “We ask the investment question from the perspective of a potential business owner: ‘Do I want to own this business for the next 10 years, with my own money?’ As we have our own money invested in the funds we manage, we can ask this question in good conscience. I think investors appreciate that.”

Jenkins also credits the fact that Hartford Investments is continually in positive net sales as a key advantage in managing their funds.

“Having positive cash flows into our funds means we can act quickly on opportunities. And instead of worrying about managing redemptions, our only reason to sell a position is when we find a better idea.”

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Women worrying about retirement

Live within your means. Start investing as early as possible. Stay out of debt. According to TD Waterhouse’s 9th annual Female Investor Poll, these are the top pieces of financial advice Canadian women, aged 45 to 64 have for other women.

The 2009 poll suggests that Canadian women benefited from their own advice, managing their finances well in spite of the recession but they are still concerned about achieving a comfortable retirement.

“Women today have many priorities – their family, friends, health, giving back to the community. Finances are just another aspect of our lives that we have to balance, so it’s understandable that many of us feel unsure about our futures,” said Patricia Lovett-Reid, senior vice-president, TD Waterhouse.

While 97% of those surveyed stated that assuring a comfortable standard of living during retirement is a top financial goal, only 30% have a formal financial plan and 27% of non-retired women aged 45-64 do not know how much money they need to accumulate before they retire in order to meet their retirement goals.

“In this case, it’s the destination, and not the journey. Simply having a plan to ‘save for retirement’ is not specific enough. We need to ask ourselves, what kind of life we want to lead in our retirement?” says Lovett-Reid. “Only after we’ve determined our lifestyle goals, can we put a plan in place to make those dreams a reality. This is key to empowering ourselves and building confidence in our financial future.”

(10/13/09)