According to Manulife Financial’s latest quarterly Investor Sentiment Index (ISI), Canadian investor confidence increased five points in late 2011.
This optimism was driven by higherconfidence in a number of investment sectors, including fixed income products (+10), balanced funds (+7) and investment property (+6).
Fixed income investments, such as bonds, GICs and income funds saw the sharpest increase in investor confidence – up 10 points over the last quarter.
Out of the six different investment categories reviewed, only confidence in cash investments decreased in the fourth quarter (-3).
“As 2011 came to a close, Canadians were clearly finding reasons to be more optimistic about their investment options,” noted Paul Rooney, president and CEO of Manulife Canada.
“A five-point increase in investor confidence will not turn things around overnight, but it is a positive sign we ended the year moving in the right direction.”
While Canadians were feeling more optimistic about their investment options, one in five noted they were most concerned about managing their debt. Another 16% were worried about saving for retirement.
Canadians were also troubled by the possibility that their investments would decrease (13%). Another 11% of Canadians listed job security as their top financial concern for 2012.
Jennifer Harrison
@JHarrisonBIV