An increasing number of investors recall receiving CRM2 statements, and find them generally easy to understand, according to an annual investor survey commissioned by the Investment Funds Institute of Canada (IFIC).
The IFIC survey, conducted by Pollara Strategic Insights, also revealed a drop in investing due to inflation, and a surge in confidence in cryptocurrencies.
Investors were more likely to remember receiving their CRM2 statement this year (65%), compared to last year (60%), with recall being higher among mutual fund investors (71%) than ETF investors (66%). Older investors, men and those who feel knowledgeable about investing and who have larger investment portfolios were more likely to recall receiving the statements, and reading them.
Most respondents said the information was easy to understand (82%) and that it provided them with all the information they needed (86%). Both of those statistics are slightly improved over 2023.
About three in 10 investors (31%) made changes to their account based on information provided in the statement.
While 79% of respondents said the way fees were presented on the CRM2 statement was good or excellent, only a minority (19%) was very confident that they knew how much they were being charged in MER fees.
Advisor and dealer fees were only slightly clearer, with 23% of respondents reporting they were confident that they understood those fees.
Despite that, investors continued to think highly of their advisors with 94% of investors saying they were at least somewhat satisfied in 2024, up from 91% last year. Respondents who had a good relationship with their advisors were more likely to be confident about their knowledge of fees.
Also, advisors were more likely to discuss suitability with clients in 2024, after a dip from the year prior.
On the macroeconomic side, inflation had a more negative impact on investment levels than interest rates, the report said. While about one-third (35%) of investors said interest rates led them to invest less, nearly half (49%) said the rising cost of living led them to invest less.
“Mutual fund investors are seeing more of a negative impact, particularly when it comes to inflation,” the report noted.
Despite inflation’s impact on investment levels, cryptocurrencies rose in popularity. A quarter of ETF investors and 15% of mutual fund investors hold cryptocurrencies in 2024, up from 19% and 10% last year respectively.
The survey was conducted between May 15 and June 4, 2024, with 4,077 mutual fund investors and 1,523 ETF investors in Canada, aged 18 or older.