Investors pulling back: Manulife

Investor enthusiasm in the first half of 2012 decreased, with fewer pouring funds into fixed income investments, investment properties, balanced funds and cash, says Manulife Financial’s Investor Sentiment Index.

Read: Global investors scale back

Results show the overall Index sits at +24, down two points from December 2011 (+26) and five points from June 2011 (+29).

The only area investors are active and confident in is the stock market, where appetite improved by six points.

Mutual funds remain steady and TFSA usage remains high, but RESP, RRSP and segregated funds, on the other hand, all dropped significantly.

“As global economic challenges dominate headlines without any significant signs of recovery, confidence in financial markets will continue to be uncertain,” says Paul Rooney, president and CEO of Manulife Canada.

– Additional findings from the Index include:

• 88% of investors say covering the basic cost of living is their most important goal for retirement;

• Travel, building an estate for heirs and donating to charity are deemed important by fewer than 50%;

Read: Plan your succession before your next vacation

• 31% rate donating money to charity as a priority, making it the lowest ranked retirement goal; Most who do are between the ages of 18 – 29 years (43%) and 75 years and older (45%);

• Younger Canadians identify covering healthcare needs (87%) and providing for family in case of illness/death (88%) as crucial

• 19% of young Canadians select CPP/QPP as their primary source of retirement funds, compared to the national average of 13%.

Read: 8 reasons to retire in Canada

Staff

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