A significant amount of investors don't know what they own
MISSISSAUGA, ON, May 8, 2013 /CNW/ - Canadian investors are holding 13
per cent of their money in GICs and a full 11 per cent don't know what
they are invested in, according to a new poll conducted by Leger
Marketing on behalf of Edward Jones.
Among Canadians who have investments, including those with Registered
Retirement Savings Plans and Tax Free Savings Accounts, the majority
own mutual funds (41 per cent), followed by stocks (14 per cent), and
closely followed by GICs (13 per cent).
"Holding as much in cash and GICs as growth investments (such as stocks)
means your portfolio may not be properly balanced, which can cause you
to miss out on opportunities to grow your investments.," said Canadian
market strategist for Edward Jones, Craig Fehr. "Cash is providing
little to no return in today's environment. It's important that your
investments are aligned with your long-term financial goals, not
The survey also revealed that half of Canadians plan to make some kind
of investment this year and of those, one in four plan to buy GICs,
further adding to their cash and short-term holdings.
"Given the market's performance, with stocks doing well but the
potential for rising interest rates going forward, we recommend
investors review their portfolios, rebalancing their mix of stocks and
bonds and adding quality investments that are poised to perform well
today and over the long term," Fehr said.
Fehr adds that investors should be wary of being over weighted in
long-term bonds as the threat of rising interest rates is likely to
impact future returns. In the poll, Quebec was the province with the
highest amount of investors holding bonds (10 per cent) and
Manitoba/Saskatchewan was the lowest at 1 per cent. The overall average
of bond holdings was 4 per cent.
Canadians may need some help deciding what to invest in, of those
choices offered in the poll question (mutual funds, GICs, Stocks,
Bonds, Annuities/Segregated Funds), a full 28 per cent said they
wouldn't be putting their investments in any of those products and 20
per cent said they didn't know where they would be putting their money
"Working with a financial advisor can help people choose the right
investments that fit their own individual needs. Good advice, quality
investments, and a steady focus on your financial goals can help you
make wise choices with your hard-earned money," said Fehr.
A survey of 1,501 Canadians was completed online between April 1 and
April 4, 2013. A probability sample of the same size would yield a
margin of error of +/- 2.5 per cent, 19 times out of 20.
About Edward Jones
Edward Jones is a full-service investment dealer with one of the largest
branch networks in Canada. It is a member of the Investment Industry
Regulatory Organization of Canada and the Canadian Investor Protection
Fund, and a participating organization of the Toronto Stock Exchange.
Including its affiliate, Edward Jones serves nearly 7 million
individual investors in Canada and the U.S. from more than 11,000
Insurance and annuities are offered by Edward Jones Insurance Agency
(except in Québec). In Québec, insurance and annuities are offered by
Edward Jones Insurance Agency (Québec) Inc. In Québec, our Financial
Advisors are known as Investment Advisors.
Edward Jones is a limited partnership in Canada and is a wholly owned
subsidiary of Edward D. Jones & Co., LP, a Missouri limited
partnership. Edward D. Jones & Co., LP is a wholly owned subsidiary of
The Jones Financial Companies, LLLP, a Missouri limited liability
SOURCE: Edward Jones
For further information:
Nina Godard, firstname.lastname@example.org, 416-969-2667