Only 32%of Canadians who hold stocks in their retirement portfolios plan to invest in foreign markets, shows a poll from CIBC Asset Management. However, 44% say their main objective is long-term growth—underscoring the need to diversify.
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Key poll findings:
- 68% plan to invest mainly in Canada
- 59% plan to invest primarily in GICs (or other guaranteed investments), savings accounts, bonds or bond funds; while just 35% plan to invest mainly in stocks, or equity funds
- 48% of Canadians between the ages of 18-34 plan to invest in global equities or mutual funds
- That rate drops to 30% for those between the ages of 35-44
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“There are 40,000 stocks that trade on global markets, versus less than a tenth of that on Canadian markets,” notes Luc de la Durantaye, managing director, asset Allocation and currency management, at CIBC Asset Management.
“Foreign currency exposure is also an important aspect of portfolio diversification,” he adds. “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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Where Canadians plan to mainly invest:
| Canadian Equities, Funds | Global Equities, Funds | |
| National Average | 68% | 32% |
| 18-24 | 52% | 48% |
| 25-34 | 52% | 48% |
| 35-44 | 70% | 30% |
| 45-54 | 73% | 27% |
| 55-64 | 72% | 28% |
| 65 and over | 73% | 27% |