Canadian mutual fund investors find comfort in their advisors: PwC survey



    73% say advisors do a good job

    TORONTO, April 30 /CNW/ - Despite massive swings in stock markets and the
economy, a new survey from PricewaterhouseCoopers (PwC) shows that 73% of
Canadians who own mutual funds believe they remain a good investment vehicle.
Furthermore, 75% trust their financial advisor and 73% feel that their
financial advisor is competent and has done a good job over the years.
    The survey of 867 Canadians invested in mutual funds was conducted by
Leger Marketing in March of 2009 and found that 73% of investors felt they
have enough investment choices as far as mutual funds are concerned. A further
65% of investors are confident that their financial advisor takes their
interests into account when selecting a portfolio for them. Only 23% believe
that they would be better served by directly investing in mutual funds without
the advice of a financial advisor.
    "Investment products are generally complex, especially given the myriad
of offerings and providers from which to choose," says Raj Kothari, leader of
the PwC Canada Investment Management practice. "Investors today are forced to
make sense of the daily barrage of conflicting messages. It's no wonder the
value of advice is crucial to investors."
    Kothari continues, "In a climate of failed companies, corporate scandals,
government bailouts, staff redundancies and decreased corporate profits, it is
easy to understand how investors can lose confidence in the markets."
    Indeed, the survey revealed a conservative optimism with 38% of mutual
fund investors believing their investment portfolio will improve within the
next two years. Others were less optimistic with only 23% believing that their
portfolio will improve in the next three years and only 27% in the next five.
    When asked to rank fund choices in terms of how important each of them
would be in helping them meet their retirement needs, balanced funds,
guaranteed products, and fixed income funds were more often among respondents'
top three picks as opposed to equity mutual funds.
    Nearly three-in-ten were unsure how their retirement needs would best be
met-especially those with a college education or less, those who have not yet
invested in mutual funds, and women. As age and income increase, however, the
likelihood that a respondent will be unsure steadily decreases.
    "In our analysis, it became quite apparent that age, income, and to a
lesser extent education and marital status, all play a role in terms of which
options respondents believe are best-suited to meet their retirement needs,"
notes Kothari. "For instance, those more likely to choose balanced funds first
include those who are, 35 years of age or older, with a university education
(vs. those with a college education or less), already invested in mutual
funds, making $80K+ per year, and men. Also, as one's income increases, so too
does the likelihood that they will place balanced funds among their top three
choices."
    Copies of the survey data are available by contacting Carolyn Forest,
carolyn.forest@ca.pwc.com, 416 814 5740.

    PricewaterhouseCoopers (www.pwc.com) provides industry-focused assurance,
tax and advisory services to build public trust and enhance value for its
clients and their stakeholders. More than 155,000 people in 153 countries
across our network share their thinking, experience and solutions to develop
fresh perspectives and practical advice. In Canada, PricewaterhouseCoopers LLP
(www.pwc.com/ca) and its related entities have more than 5,200 partners and
staff in offices across the country.
    "PricewaterhouseCoopers" refers to PricewaterhouseCoopers LLP, an Ontario
limited liability partnership, or, as the context requires, the
PricewaterhouseCoopers global network or other member firms of the network,
each of which is a separate and independent legal entity.





For further information:

For further information: Carolyn Forest, PricewaterhouseCoopers LLP,
(416) 814-5730, carolyn.forest@ca.pwc.com; Nina Godard, PricewaterhouseCoopers
LLP, (416) 941-8383 x 13520, nina.godard@ca.pwc.com

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