A new poll from CIBC Asset Management finds that only 32% of Canadians who hold stocks in their retirement portfolios plan to invest in markets outside of Canada.
The poll also shows that nearly half (44%) of investors surveyed say their main objective is long-term growth, which underscores the need to diversify their portfolios.
Fifty-nine percent of Canadians plan to invest primarily in guaranteed investment certificates or other guaranteed investments, savings accounts, bonds or bond funds; while just 35% plan to invest mainly in stocks or equity funds.
Nearly half (48%) of Canadians between the ages of 18 and 34 plan to invest in global equities or mutual funds. That number declines sharply to 30% for those between the ages of 35 and 44, a demographic that’s 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. He adds that 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,” de la Durantaye explains. “With a number of foreign currencies cheaper than the Canadian dollar at current levels, there’s an opportunity of further gains for Canadian investors.”
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