Equity markets were red hot in 2009 but Canadians remain frozen in action and unaware of the market’s dramatic recovery, according to a new survey released Tuesday by Franklin Templeton Investments Corp.

In the survey of Canadian investor sentiment, conducted this January by Angus Reid Public Opinion, 87% report that they failed to invest in 2009. And there’s no indication Canadians will be getting back into the markets any time soon. Fifty-eight per cent do not plan to make new investments in 2010 or do not know what to do.

The survey results suggest that few Canadians are knowledgeable when it comes to today’s investment climate. The S&P/TSX Composite Index was up 30.7% in value last year, its best annual return since 1979. However, 86% of Canadians surveyed were unaware of the dramatic gain recorded by the country’s leading stock index.

However, those who did follow the market closely were far more likely to take action. The survey found 37% of Canadians who described themselves as buyers in 2009 correctly identified the market’s recovery. Canadians who invested last year were far more likely to understand the market’s performance.

“Franklin Templeton’s research shows that informed investors were best positioned to take advantage of the markets last year,” says James Cook, executive vice president of Franklin Templeton Investments Corp. “Only 14% of investors knew the TSX rose more than 20% in 2009 — and perhaps that’s why so few benefited from last year’s market surge. It’s important for Canadians to get advice — and get invested.”

Despite the market’s recovery and an improving Canadian economy, the survey found investor skepticism and fear on the rise. Forty per cent of respondents describe their current investment personality as either “suspicious” or “timid,” up six points from February 2009. Meanwhile, 29% of investors described themselves as “analytical”, “opportunistic” and “risk-taking,” down four points from a year ago.

The survey found investment intentions change dramatically with income and education: 62% of those with household incomes over $100,000 are planning new investments, as are 57% of people with a university education.

Men are more likely to invest in equities such as stocks and equity mutual funds than women (14% versus 4%) in 2010. Women are more bearish with 48% unlikely to invest this year compared to 38% of men.

“It’s imperative for Canadian investors to get a good understanding of the investment climate and what’s required to meet their long-term financial goals,” Mr. Cook said. “The key is education and advice – and a trusted investment advisor can make a real difference.”

Franklin Templeton’s investment experts are currently touring Canada speaking to investment advisors about strategies and solutions for 2010. They will be visiting the following cities in Ontario on:

• January 19: Thunder Bay
• January 21: Guelph and Waterloo
• January 25: North York and Richmond Hill
• January 26: Toronto and Scarborough
• January 27: Peterborough and Kingston
• January 28: Windsor and London
• February 2: Ottawa
• February 9: Mississauga, Oakville and St. Catharines

On January 4 and 5, Angus Reid Public Opinion conducted an online survey among a randomly selected, representative sample of 1,019 adult Canadians. The margin of error for the total sample is +/- 3.1%, 19 times out of 20.

IE