In a recent poll, 65% of Canadian Chartered Financial Analysts (CFA) described investor sentiment as decidedly bearish towards their RRSP holdings. Another 32% thought investor sentiment was flat. Only 3% reported their clients were bullish on RRSP investments.
The biggest concerns expressed by individual investors were market volatility, uncertainty and the fortunes of the U.S. economy. To quote one respondent, “Market volatility is a huge concern. As a result, most investors are sitting on the sidelines, preferring to be in cash versus investing in the markets.”
“Individuals are unsure in which direction to turn. There are no returns from GICs and fixed income; equities are so volatile it is making it very difficult to make comfortable investment decisions. Personal investing isn’t as much fun as it used to be,” another CFA charterholder writes. “Working for a discretionary investment management firm, I find that clients are more willing to depend on our firm’s expertise to manage their investments and their retirement funds for them in these uncertain times.”
This first ever national poll of CFA charterholders reveals intimate insights into investor behaviour. The 1,770 investment professionals that participated in the poll are thought to be more aligned with their client’s needs and aspirations due to their extensive market knowledge.
While investors do not appear to be maximizing their RRSP limits (according to 52% of CFA charterholders), they are expressing more active interest in both green and ethically based investment vehicles.
The poll was conducted via electronic survey, and was in-field from February 14 until February 20, 2008. All 12 Canadian CFA societies participated as follows. The total number of responders was 1,770 out of 10,373 Canadian CFA charterholders.
Investors bearish towards RRSP holdings: CFA survey
- By: IE Staff
- March 3, 2008 October 31, 2019
- 13:20