Investor confidence in a holding pattern as Canadians look for market direction

TORONTO, Feb. 4 /CNW/ - As investment experts and analysts try to anticipate how 2011 develops in regards to the markets and the economy, it appears that investors are also in wait-and-see mode.

"According to the Russell Financial Health Index (RFHI), investors' confidence in their financial health remained just about even," says Fred Pinto, Managing Director of Distribution Services at Russell Investments Canada Limited.

The RFHI, based on an online calculator that gauges the overall financial health of Canadian investors, current stands at 48 points. The RFHI was at 48 points the last time it was measured in the third quarter of 2010 and was at 51 points at the start of last year (higher points indicate greater financial optimism).

"The lack of change in investor confidence is common at this time of the year, due to a lack of major economic or market indicators pointing investors in a certain direction. This is where the value of a trusted advisor and expert investment advice comes in handy," explains Pinto.

The RFHI was able to identify investors' areas of financial concern on a more personal level. According to the RFHI, the three greatest financial concerns for Canadians relate to:

  1. Having sufficient income for a desired lifestyle
  2. Having a reliable source of income
  3. Leading a active and healthy lifestyle in retirement

The issue of having a tangible, realistic financial plan was the fastest growing concern. Maximizing the tax-efficiency of investments was also listed as a growing issue for Canadians.

The RFHI allows investors to compare their financial health to Canadians across the country and is available in English and French at: www.myfinanciallyhealthyretirement.com.

To learn more about the Russell Financial Health Index and its results, please contact Thien Huynh at:

416-640-2529

About the Russell Financial Health Index

The Russell Financial Health Index gathers its data from a confidential web survey, which takes approximately five minutes to complete. Based on a user's answers, a Financial Health Score is assigned, which can be measured against the scores of other Canadian investors who have used the tool.

Each score is a result of analyzing variables that include physical health, personal finances, unexpected events and financial planning. Respondents are also asked questions related to how prepared they feel to ride out changes in their long term investment performance before and during retirement.

Findings from the Index will be used to assess and report findings, on a quarterly basis, about how Canadians perceive their financial health, as they deal with different economic environments and changes in their lives.

About Russell Investments

Founded in 1936, Russell Investments is a global financial services firm that serves institutional investors, financial advisers and individuals in more than 40 countries. The firm has C$153.2 billion in assets under management (as of September 30, 2010) in its mutual funds, retirement products, and institutional funds.

Russell Canada was recently named the #1 fastest growing money manager in Benefits Canada's 2010 Top 40 Money Managers Report. For more information about how Russell helps to improve financial security for people, visit us at www.russell.com/ca.

Important Information

Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing.

Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.

Nothing in this publication is intended to constitute legal, tax securities or investment advice, nor an opinion regarding the appropriateness of any investment, nor a solicitation of any type. This is a publication of Russell Investments Canada Limited and has been prepared solely for information purposes. It is made available on an "as is" basis. Russell Investments Canada Limited does not make any warranty or representation regarding the information.

Russell Investments and the Russell Investments logo are registered trademarks of Frank Russell Company, used under license by Russell Investments Canada Limited.

Copyright © Russell Investments 2010. All rights reserved. This material is proprietary and may not be reproduced, transferred, or distributed in any form without prior written permission from Russell Investments.


SOURCE Russell Investments Canada Limited

For further information:

Thien Huynh           416-640-2529            

For real-time news updates, follow @Russell_News on Twitter.


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