Canadians generally say they kept positive about investing in the past quarter, despite daily news about volatile equity markets, rising gas and food prices plus U.S. sub-prime lending woes, according to a national poll for Manulife Financial.

The quarterly Manulife Investor Sentiment Index gained two points to reach +24 in late June, after a five-point drop in the previous quarterly poll in March. The index monitors how Canadians say they feel about investing in 10 different categories and vehicles.

“We’re seeing very consistent responses from Canadians, who suggest they’re adjusting in stride to daily events,” says Paul Rooney, president and CEO, Manulife Canada. “In our latest poll we do see some shifts — in particular toward cash and specific funds, and away from investment real estate. Yet Canadians continue to show strong interest in mutual and segregated funds, with only stocks still in negative territory.”

The survey of 1,000 Canadians by Maritz Research in late June found seven among 10 investment categories and vehicles gained ground from the previous March poll.

“Since its launch in 1999, the Manulife Investor Sentiment Index has remained in positive territory overall. It peaked at +35 in early 2000, but fell to a low of +11, in December 2001. During the past two years, the index has remained near six-year highs and above +20.

Real estate was the only investment category to lose ground in the recent survey, with investment property and their principal residences both losing some support from earlier this year.

After rising 12 percentage points in March, investment property registered the strongest drop in June of any category, by falling 11 percentage points. Principal residences kept their place as the most popular investment category – yet support for investing in their own home also eased two percentage points.

Investing in their own homes (either through renovations or paying down the mortgage) remains the most popular place for Canadians to put their money – a consistent finding since 1999. The index for investing in their own home fell two points in June to +53, after gaining five points in the March survey.

Fixed income investments (including GICs and annuities) climbed to second place among most popular categories this quarter, rising four points from March. At +28, the index remains high compared to its low of +4 in mid-2004.

Balanced funds also rose to third place among the most-popular investment targets, rising eight points to +25. Among those surveyed, 46% felt balanced funds are a good or very good place to invest, compared to 21% who said the opposite in June.

Cash (including savings accounts) showed the largest category gain by climbing nine points this quarter to sit at +23. Cash has traditionally been the least favourite among places to put money, but eclipsed both investment real estate and equities in the most recent poll.

Investment real estate dropped sharply, from its second-place ranking in March to place fifth among investment categories in June. At +17, investment real estate showed the largest decline in the quarter — after registering the largest gain in March.

After marginal gains in the past year, the index for equities actually gained six points in June to sit at -1, the only category in negative territory. The stocks index reflects 31% who said it’s a good or very good time to invest in stocks, either directly or via mutual funds, while 32% saw equities as a bad choice. Another 23% felt it’s neither a good or bad time to buy shares.