Fifty-one per cent of Millennial investors prefer less market volatility over higher returns
Jul 14, 2016, 06:00 ET
Sun Life Global Investments survey finds younger investors hesitant to take on risk
TORONTO, July 14, 2016 /CNW/ - The ups and downs of the markets may have proven to be too much of a roller coaster ride for many young investors. Market Volatility Makes a Difference, the 2016 Market Sentiment Report launched today by Sun Life Global Investments, reveals more than half (51 per cent) of Millennials between the ages of 18 and 30 would rather experience less volatility even if it means passing on opportunities to earn higher rates of return.
The report also found:
- 44 per cent of Millennials classified themselves as somewhat or highly risk averse;
- 44 per cent described their investment approach as conservative; and
- 33 per cent of Millennials sold their investments to raise cash, with half saying fear of losing money was the trigger.
"Investors are feeling the negative effects of recent market turbulence, but none as much as the Millennials, which is surprising," said Sadiq S. Adatia, Chief Investment Officer, Sun Life Global Investments. "They could potentially be putting their retirement savings in jeopardy by investing so conservatively. These are investors with a long time horizon who should consider taking on more risk for the potential to earn higher returns ̶ there are solutions that can help."
Forty-eight per cent of Millennials said recent market volatility has led them to have more frequent conversations with their financial advisors – more than any other age group.
When asked what the most valuable piece of advice they received from their advisors, investors overall pointed to staying the course at 42 per cent. This is in line with the 43 per cent of advisors who said this was the most valuable advice they shared with clients.
"It's encouraging to hear that as Millennials were anxious about the markets they turned to their financial advisors for guidance," said Cindy Crean, Managing Director, Private Client, Sun Life Global Investments. "It's important they don't let emotions guide their investing decisions."
For more information about the 2016 Market Sentiment Report, Market Volatility Makes a Difference, please visit www.findthebrightside.ca.
About Sun Life Global Investments (Canada) Inc.
Sun Life Global Investments offers Canadians a diverse lineup of mutual funds and innovative portfolio solutions, empowering them to pursue their financial goals at every life stage. We bring 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 to deliver a truly global investment platform. Sun Life Global Investments manages more than $13 billion on behalf of institutional and retail investors from coast to coast and is a member of the Sun Life Financial group of companies. For more information, visit www.sunlifeglobalinvestments.com or connect with us on Twitter @SLGI_Canada.
About Sun Life Financial
Sun Life Financial is a leading international financial services organization providing a diverse range of protection and wealth products and services to individuals and corporate customers. Sun Life Financial has operations in a number of markets worldwide, including Canada, the United States, the United Kingdom, Ireland, Hong Kong, the Philippines, Japan, Indonesia, India, China, Australia, Singapore, Vietnam, Malaysia and Bermuda. As of March 31, 2016, the Sun Life Financial group of companies had total assets under management of $861 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.
Note to Editors: All figures in Canadian dollars.
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.
About the Market Sentiment Report
The online survey was conducted between March 14 and April 1, 2016. A sample of 521 Canadians from 18 to 80 years of age with a minimum of $25K in investable assets was drawn from the Ipsos I-Say online panel.
The precision of Ipsos online surveys is measured using a credibility interval. In this case, the survey is accurate to within +/-4.3% at 95% confidence level had all Canadian adults been polled. All sample surveys and polls may be subject to other sources of error, including, but not limited to methodological change, coverage error and measurement error.
The telephone survey was conducted between March 14 and April 1, 2016. A sample of 500 financial advisors was drawn from the PMG Intelligence list of 27,000 financial advisors who have agreed to receive third-party communication.
The precision of telephone surveys is measured using a credibility interval. In this case, the survey is accurate to within +/-4.3% at 95% confidence level had all Canadian financial advisors been polled. All sample surveys and polls may be subject to other sources of error, including, but not limited to methodological change, coverage error and measurement error.
For further information:
Sun Life Financial
SOURCE Sun Life Global Investments (Canada) Inc.
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