More Canadian investors looking at investing outside of country: poll

TORONTO - Canadian investors are increasingly looking at putting their money to work outside the country despite the drop in the loonie, a CIBC poll suggests.

See Full Article

The survey found that 41 per cent of Canadians investing for retirement in stocks or mutual funds will invest mainly outside of the country.

That result is up from 31 per cent in a similar poll last year.

The poll conducted in January by Vision Critical found 15 per cent of those surveyed said they planned to add to their U.S. investments, while another 15 per cent were investing in emerging markets.

Eleven per cent planned on stocks and mutual funds in developed markets such as Europe.

The online poll was done by Vision Critical from Jan. 20 to 22.

Much of the Canadian stock market is based in three key sectors - energy, mining and financials. The concentration meant last year that the S&P/TSX composite index suffered due to weakness in oil and other commodity prices.

"While it's natural for investors to have a 'home bias' by overweighting your portfolio to domestic stocks, taking a Canada-only approach can hurt returns," says Luc de la Durantaye, managing director, asset allocation and currency management, CIBC Asset Management.

"Canada accounts for only about three per cent of the world's market capitalization, so diversifying geographically can strengthen your portfolio for the long-term."

The Canadian dollar has come off highs of recent years to trade at its lowest level against the U.S. dollar in more than a decade earlier this year.

And while the drop in the loonie has made buying investments in the U.S. more expensive, it has also given a boost to U.S. stocks in Canadian dollar terms even with the relatively flat year for the S&P 500 in 2015.

The CIBC suggested that with the recent volatility on the stock market and the lower loonie, 22 per cent of investors are looking at "alternative asset" classes that include real estate or infrastructure.

Another 26 per cent said they wanted to learn more about alternative asset classes, the poll said.

The polling industry's professional body, the Marketing Research and Intelligence Association, says online surveys cannot be assigned a margin of error as they are not a random sample and therefore are not necessarily representative of the whole population.



Advertisements

Latest Economic News

  • Air Canada's Montreal to Japan direct flight expected to generate economic returns

    Economic CTV News
    MONTREAL -- Air Canada says it will introduce direct year-round service between Montreal and Tokyo which the business community and politicians expect will generate economic returns beyond tourism. The country's largest airline will operate year-round service starting next June to Narita airport. Source
  • Greenpeace accused of 'eco-terrorism' in lawsuit filed by Dakota Access pipeline developer

    Economic CBC News
    Energy Transfer Partners LP on Tuesday sued Greenpeace and other environmental groups, accusing them of launching an "eco-terrorism" campaign aimed at blocking the Dakota Access Pipeline, the center of months of opposition by Native American and green groups. Source
  • Twitter Canada searching for new director after Rory Capern abruptly steps down

    Economic CTV News
    TORONTO - The managing director of Twitter Canada has unexpectedly stepped down a year and a half after taking on the job. Rory Capern said on Twitter that he was grateful for the chance to lead the division and was looking forward to what's next, without saying what that might be. Source
  • Realtors who break rules should face tougher penalty, says Ont. association

    Economic CTV News
    TORONTO -- The Ontario Real Estate Association says it's time for higher fines for real estate agents that break the rules. The association is proposing that the fines for salespeople who violate a code of ethics double to $50,000. Source
  • Banks help lift Toronto stock index as U.S. markets give up gains

    Economic CTV News
    TORONTO -- Shares of Canada's biggest banks and insurance companies are helping lift the Toronto stock market's main index today. The Toronto Stock Exchange's S&P/TSX composite index was up 67.17 points to 15,052.13, after 90 minutes of trading. Source
  • Toronto wealth management firm Wealthsimple launches 'Halal' investing portfolio

    Economic Toronto Sun
    TORONTO — Robo-adviser Wealthsimple has launched a new investment portfolio for observant Muslims, a move the company says builds off its success targeting smaller, underserviced groups of investors. The Toronto-based wealth management firm says its Halal investing portfolio is designed for those adhering to Islamic laws that prohibit investing in certain companies and financial products. Source
  • Walmart partners with Google on voice-activated shopping

    Economic CBC News
    Google is partnering with Walmart to allow customers to order thousands of products from Walmart via their smartphones or other Google devices such as the Home speaker. (Walmart) Walmart is diving into voice-activated shopping. Source
  • Record household debt to add pressure to credit cards in next downturn: Moodys

    Economic CTV News
    TORONTO -- Unprecedented household debt levels will give Canadians a rude awakening on their unpaid credit card bills if another economic downturn materializes in the coming years, according to a new report issued Wednesday. Moody's Investors Service it will be closely watching Alberta and Saskatchewan for signs of increased delinquencies on consumer debt portfolios. Source
  • Wealthsimple launches Halal investing portfolio for observant Muslims

    Economic CBC News
    Robo-adviser Wealthsimple has launched a new investment portfolio for observant Muslims, a move the company says builds off its success targeting smaller, underserviced groups of investors. The Toronto-based wealth management firm says its Halal investing portfolio is designed for those adhering to Islamic laws that prohibit investing in certain companies and financial products. Source
  • Royal Bank hikes dividend after posting $2.8B quarterly profit

    Economic CBC News
    Royal Bank of Canada is reporting nearly $2.8 billion of net income for its fiscal third quarter and an unexpectedly large increase to its quarterly dividend. RBC's net income was down three per cent from last year when its bottom line was boosted by the sale of an insurance business, which also reduced the bank's overall revenue. Source