Poor investment performance in a volatile market has considerably reduced overall satisfaction among Canadian investors in 2009, according to a J.D. Power and Associates study.
Overall satisfaction among Canadian investors dropped 4% in 2009 compared with 2008 because of poor investment performance.
The increased dissatisfaction has led to more investors thinking about switching investment firms. Ten percent of respondents were thinking of switching compared with 6% last year. Fewer investors also said they were willing to recommend their investment firm to others; 24% said they "definitely will" recommend their primary firm in 2009, down from 32% in 2008.
The study also found that more full-service investors were taking matters into their own hands, as 36% opened an online or discount brokerage account, up from 25% last year.
Lubo Li, senior director at J.D. Power and Associates, Toronto, said, "As investment vehicles become more complex, firms will benefit from providing clients with investment information online and secure online trading that's cost effective and easy to use. The new frugality has arrived."