Canadians say they are playing it safer with their savings this summer as they shift toward more conservative investment vehicles, according to a national poll conducted for Manulife Financial.

The 14th regular quarterly poll for Manulife, conducted in mid-June, recorded a slight increase in investor sentiment with more Canadians showing higher interest in fixed income investments, cash and balanced funds, compared to three months earlier. Three of 10 categories in the survey gained ground, while another four showed marginal declines from the last previous poll in mid-March.

“Our latest survey suggests slightly more Canadians are leaning toward traditionally ‘safer’ places for their money, particularly in light of even more recent market events reflecting corporate governance cases affecting equity markets,” said Bruce Gordon, Manulife’s executive vice president of Canadian operations, in a news release. “But the positive gain in the overall Manulife Investor Sentiment Index could bode well for investors taking a ‘portfolio-approach’ over the long term.”

Gordon said the latest survey reflects recent concerns raised by cases such as Enron and WorldCom, despite considerable strength in the overall North American economy.

The overall Summer 2002 index, based on a mid-June survey of 1,002 Canadians by Thompson Lightstone & Company, climbed two points to +23. The quarterly index monitors what Canadians say they feel about 10 different investment categories and vehicles. The index reflects the percentage of those surveyed who say they believe it is a good or very good time to invest — minus the percentage who say it is a bad or very bad time.

Among investment vehicles, RESPs, RRSPs and segregated funds generally held their ground. After soaring near record highs earlier this year, investing in real estate (including their own home mortgages, renovations and investment properties) eased slightly, while stocks and mutual fund indices reflected uncertainties in equity markets.

Investing in their own homes (either renovations or mortgages) remains the most popular investment for Canadians. Traditionally the favourite of six investment categories, investing in their own home eased five points (after climbing 17 points in mid-March) to +53 in June.

Following a strong rebound in March, mutual funds registered the largest decline in consumer interest in June, easing seven points. While year-over-year mutual fund sales were down sharply in June, the index for mutual funds now stands at +23. Some 45% of those surveyed said it was a good or very good time to invest in mutual funds, while 22% said it was a bad or very bad time to invest their money in mutual funds.