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

  • 'We want no part of it' : U.S. airlines refuse to transport migrant kids separated from parents

    Economic CBC News
    Major U.S. airlines are telling the White House that they don't want to participate in any transportation of migrant children who have been separated from their parents at border crossings. In a statement Wednesday, American Airlines said it doesn't know whether any migrant children have been on its flights, but it doesn't want to profit from the current immigration policy of separating families. Source
  • The Mouse chases the Fox: Disney makes $71B US counteroffer for Twenty-First Century Fox

    Economic CBC News
    The mouse is chasing the fox. Disney is offering more than $71 billion US for Fox's entertainment businesses in a counterbid to Comcast's nearly $66 billion US offer . The battle for Twenty-First Century Fox reflects a new imperative among entertainment and telecommunications firms. Source
  • Canadian steel not a national security threat on its own: U.S. commerce secretary

    Economic CTV News
    OTTAWA -- The U.S. commerce secretary says Canada is not a national security threat and that a revitalized NAFTA could make the Trump administration's tariffs on steel and aluminum go away. Wilbur Ross also acknowledged Wednesday that the U.S. Source
  • PayPal blocks sales of school shooting video game

    Economic CTV News
    HARTFORD, Conn. -- The developer of a school shooting video game condemned by parents of slain children has lost the ability to sell its products online after being dumped by PayPal. Acid Software said Tuesday that purchases of "Active Shooter" were "temporarily disabled" as its representatives tried to resolve the issues with PayPal. Source
  • Aurora Cannabis to spin off U.S. holdings to publicly traded Australis Capital

    Economic CTV News
    EDMONTON -- Aurora Cannabis Inc. is planning to spin off its Australis Capital subsidiary as a separate entity that would focus primarily on investing in the U.S. cannabis and real estate sectors. The spin-off will be achieved by distributing shares and warrants of the new company -- to be listed on the Canadian Security Exchange. Source
  • Fed chair signals gradual rate hikes in tame inflation era

    Economic CTV News
    WASHINGTON -- The U.S. Federal Reserve will likely keep raising short-term interest rates at only a gradual pace, Fed chair Jerome Powell said Wednesday, partly because there are few signs, so far, that the ultra-low U.S. Source
  • Amazon, Buffett, JPMorgan pick Gawande to lead health firm

    Economic CTV News
    Amazon, JPMorgan Chase and Berkshire Hathaway have picked well-known author and Harvard professor Dr. Atul Gawande to transform the health care they give their employees. The three corporate titans said Wednesday that Gawande will lead an independent company focused on a mission they announced earlier this year: figuring out ways to improve a broken and often inefficient system for delivering care. Source
  • U.S. congressional committee hearing on current and proposed tariff actions LIVE

    Economic CBC News
    Contact CBC Audience Relations, CBC P.O. Box 500 Station A Toronto, ON Canada, M5W 1E6 Toll-free (Canada only): 1-866-306-4636 TTY/Teletype writer: 1-866-220-6045Contact Us Source
  • Employers now face a time crunch on pot policy

    Economic CTV News
    Employers across Canada are grappling with the new reality of recreational marijuana becoming legal following the passage of Bill C-45 in the Senate. The pending change will mean decades-old workplace policies on the drug will need to be adjusted, and new safety concerns considered. Source
  • Canadian pot company spins out U.S. assets into separate company to stay on right side of law

    Economic CBC News
    Canada's second largest cannabis company plans to place its U.S. assets into a new separate company that will focus on investing in the cannabis and real estate sector there. TSX-listed Aurora Cannabis said Wednesday it plans to distribute units of its subsidiary Australis Capital Inc. Source