Only 32 per cent of Canadians who hold stocks in their retirement portfolios plan to invest in markets outside of Canada, according to a new poll from CIBC Asset Management by Leger.
The poll results also show that nearly half of investors surveyed (44 per cent) say their main objective is long-term growth, which underscores the need to diversify their portfolios.
Key poll findings include:
> 68 per cent of Canadians plan to invest mainly in Canada;
> 59 per cent of Canadians plan to invest primarily in GICs (or other guaranteed investments), savings accounts, bonds or bond funds; while just 35 per cent plan to invest mainly in stocks, or equity funds; and
> nearly half (48 per cent) of Canadians between the ages of 18-34 plan to invest in global equities or mutual funds, with that number declining sharply to 30 per cent for those between the ages of 35-44, a demographic that is typically in their primary wealth-building years.
“While the Canadian market is a solid base for investing, diversification is an important consideration for long-term investors” says Luc de la Durantaye, managing director, asset allocation and currency management, at CIBC Asset Management.
“There are 40,000 stocks that trade on global markets, versus less than a tenth of that on Canadian markets. Global stocks include world leaders in health care, technology and manufacturing. Diversifying a portfolio across geographic regions and sectors offers many opportunities that are not available domestically.”
“Foreign currency exposure is also an important aspect of portfolio diversification,” he adds. “With a number of foreign currencies cheaper than the Canadian dollar at current levels, there’s an opportunity of further gains for Canadian investors.”
The poll was conducted by Leger through a web survey in December 2013 among a representative sample of 1,503 English- or French-speaking Canadians, 18 years of age or older, who have an investment portfolio for retirement.