Russell Investments Canada Limited data reveals an unprecedented opportunity for investors to earn more for their buck
TORONTO, Feb. 16 /CNW/ - At a time when every dollar counts, older Canadians are not getting enough bang for their buck.
According to data provided by Ipsos Reid, Canadian investors aged 50 and older are currently holding about 25% in Guaranteed Investment Certificates (GICs) and High Interest Savings Accounts (HISAs) in their portfolios - a nine-year high. Russell Investments Canada Limited research further concluded that these GIC and HISA holdings represent roughly $300 billion in low-yielding investments.
"Investors have had to deal with significant market volatility over the past two years, so it is expected that many Canadians have a lower risk tolerance and a higher desire for security," says Fred Pinto, Managing Director of Distribution Services at Russell Investments Canada Limited.
"However, too many Canadians are earning unnecessary low returns. GICs and savings accounts do not yield enough after-tax returns to position portfolios for retirement and deliver the income needed in retirement, particularly if you factor long-term inflation expectations. In contrast, some globally-managed bond and conservative balanced funds posted double-digit gains last year, featuring slightly more investment risk, but, are much more able to address longevity risk - the risk of outliving one's money in retirement. As a result, this $300 billion sitting on the sidelines represents a tremendous opportunity for advisors to help clients put their money to work, make the most of their savings, and build their retirement portfolios."
To get access to more of Russell's investment research, visit: www.myfinanciallyhealthyretirement.com
Russell Investments provides strategic advice, world-class implementation, state-of-the-art performance benchmarks and a range of institutional-quality investment products. With approximately $184.9 billion CDN in assets under management (as of Dec. 31, 2009), Russell Investments serves individual, institutional and advisor clients in more than 40 countries. Russell Investments provides access to some of the world's best money managers. It helps investors put this access to work in corporate defined benefit and defined contribution plans, and in the life savings of individual investors.
Founded in 1936, Russell Investments is a subsidiary of Northwestern Mutual Life Insurance Company and headquartered in Tacoma, Wash. Russell has principal offices in Amsterdam, Auckland, Johannesburg, London, Melbourne, New York, Paris, San Francisco, Singapore, Sydney, Tokyo and Toronto.
Russell Investments Canada Limited is a wholly-owned subsidiary of Frank Russell Company. For more information, please go to www.russell.com/ca.
SOURCE Russell Investments Canada Limited
For further information: For further information: Thien Huynh, (416) 640-2529; Katita Stark, (416) 929-9100