Advisors think China poses the greatest economic threat to Canada
according to the inaugural Sun Life Advisor Sentiment Index
TORONTO, June 26, 2012 /CNW/ - Canada's financial advisors are more
optimistic about the performance of U.S. markets compared to any other
major global equity market, including Canada, over the next 12 months
according to the Sun Life Advisor Sentiment Index released today by Sun
Life Global Investments. The survey, conducted by Ipsos Reid between
April 23 to May 4, 2012, measures Canada's financial advisors'
sentiments on capital markets and key economic factors.
Seventy-eight per cent of advisors are optimistic about U.S. markets
(including the Dow Jones Industrial Average and the S&P 500 Index)
compared to 60 per cent of advisors who say they are optimistic about
Canada's S&P/TSX Composite.
"How well the U.S. economy is doing continues to surprise many people
and Canada's financial advisors are taking notice of this upward
trend," said Sadiq S. Adatia, Chief Investment Officer, Sun Life Global
Investments. "We have been optimistic about the U.S. markets since last
year and think they offer the most opportunities over the other major
equity markets, followed by emerging markets."
Advisors see a variety of global economic factors threatening the
Canadian economy over the next year. More than half consider a major
downturn in China to be among the three greatest threats.
Fifty-seven per cent of advisors said a significant slowdown in the
Chinese economy could pose a threat to Canada in the next 12 months.
Forty-three per cent of advisors said the same about a breakup of the
Thirty-nine per cent of advisors said a sovereign debt crisis is among
the top three risks to Canada.
Weak consumer spending (36 per cent), the price of oil (35 per cent) and
inflation (22 per cent) also pose threats to our economy.
"While advisors raise valid concerns, we have also found through our
past research that some domestic issues threaten the Canadian economy,"
said Adatia. "We believe Canadians continue to add debt even though
they're already shouldering significantly large amounts. Savings are
low and the housing market grows more overheated every day."
The majority of advisors (71 per cent) believe Canada's overnight
interest rate will be higher on June 30, 2013 than it is today. While
69 per cent believe the Consumer Price Index will rise either one or
two per cent over the next 12 months.
The effects of the 2008 financial downturn are still being felt by
Advisors believe almost half (48 per cent) of their clients are more
risk adverse since 2008.
Thirty-seven per cent believe their clients are pessimistic about the
current market conditions.
Fear of losing capital (62 per cent) is the number one concern advisors
hear from their clients followed by fear that their investment
performance won't be enough to achieve their lifestyle goals (61 per
The money invested won't be enough for retirement (60 per cent) and fear
that if markets crash, clients won't have enough time to make up any
losses before retirement (59 per cent) are also concerns advisors hear.
Listen to Sadiq S. Adatia, Sun Life Global Investments Chief Investment
Officer, as he comments on the Index.
Read the full report on the Advisor Sentiment Index for more key findings and results.
These are some of the findings of an Ipsos Reid poll conducted between
April 23 and May 4, 2012 on behalf of Sun Life Financial. For this
survey, a sample of 475 Canadian financial advisors was interviewed
online. The survey participants represent a cross-section of the
Canadian financial services industry including affiliated and
independent financial advisors. More than two thirds (70 per cent) of
the survey respondents are members of the Mutual Fund Dealers
Association (MFDA) and a third (35 per cent) are members of the
Investment Industry Regulatory Organization of Canada (IIROC). A survey
with an un-weighted probability sample of this size and a 100 per cent
response rate would have an estimated margin of error of +/- 3.9
percentage points, 19 times out of 20, of what the results would have
been had the entire population of Canadian financial advisors been
interviewed. All sample surveys and polls may be subject to other
sources of error, including, but not limited to coverage error, and
measurement error. Percentages reported in this summary are rounded to
the nearest whole number.
This press release may include future or forward-looking statements that
are speculative in nature and which cannot be relied upon. There is no
guarantee that these events will occur or in the manner speculated.
Information provided in this press release is compiled from sources
believed to be reliable at the time of release, but no representation
or warranty, express or implied, is made as to its accuracy.
Information and commentaries expressed herein are subject to change
without notice and are provided in good faith without legal
responsibility. This press release is not intended to provide specific
financial, tax, insurance, investment, legal or accounting advice and
should not be relied upon in that regard and does not constitute a
specific offer to buy and/or sell securities.
About Sun Life Global Investments (Canada) Inc.
Sun Life Global Investments brings together the strength of one of
Canada's most trusted names in financial services with some of the best
asset managers from around the world. With a focus on risk management,
our rigorous selection and monitoring process provides access to
leading asset managers who use insight and innovation to manage high
quality investment solutions for Canadian investors. For more
information, visit: www.sunlifeglobalinvestments.com.
About Sun Life Financial
Sun Life Financial is a leading international financial services
organization providing a diverse range of protection and wealth
accumulation products and services to individuals and corporate
customers. Chartered in 1865, Sun Life Financial and its partners today
have operations in key markets worldwide, including Canada, the United
States, the United Kingdom, Ireland, Hong Kong, the Philippines, Japan,
Indonesia, India, China and Bermuda. As of March 31, 2012, the Sun Life
Financial group of companies had total assets under management of $494
billion. For more information please visit www.sunlife.com.
Sun Life Financial Inc. trades on the Toronto (TSX), New York (NYSE) and
Philippine (PSE) stock exchanges under the ticker symbol SLF.
Image with caption: "Sadiq S. Adatia, Chief Investment Officer, Sun Life Global Investments. (CNW Group/Sun Life Financial Inc.)". Image available at: http://photos.newswire.ca/images/download/20120626_C4020_PHOTO_EN_15685.jpg
SOURCE Sun Life Financial Inc.
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