Although the S&P/TSX composite index recently finished the second quarter of this year up 17.6%, Canadian investors continue to be concerned about their financial health, Russell Investments Canada Ltd. said Thursday.

The Russell financial health index, an online calculator that gauges the overall financial health of investors on a quarterly basis, fell to 48.50 points from April to June, down from 49.99 points in the first quarter of 2009. The index has now declined every quarter since posting 50.65 points in the fourth quarter of 2008, Russell says.

The calculator allows investors to compare their financial health to Canadians across the country.

“Despite positive trends in the markets, it appears that investors are still uneasy about their financial health during a volatile, yet improving, period in the capital markets,” says Irshaad Ahmad, president and managing director of Russell Investments Canada Ltd.

“Perceptions of financial health have been impacted by the realities of rising unemployment, pay cuts, and uncertainty regarding a sustainable market recovery. Some good news can be found in the performance of most equity markets so far this year. Given that equity markets tend to improve ahead of an economic recovery, there are likely better days ahead for Canadian investors.”

According to the second quarter Index results, the biggest concern for Canadian investors remains the ability to have sufficient income for a desired lifestyle.

The ability to leave assets or inheritance to beneficiaries was the largest rising concern in the second quarter, increasing by 17.1%.

The financial impact of the loss of a spouse or partner was the second highest rising concern, up 10.4% in the second quarter.

“In addition to the ongoing concerns about having sufficient and reliable sources of income, concern has increased about the ability to leave an estate and the financial impact of losing a partner,” says Ahmad.

IE