Canadian women investors are less confident today than a year ago, but this concern is not leading to action, according to a new poll from TD Waterhouse.

says the 2008 TD Waterhouse Female Investor Poll, a comprehensive annual study of Canadian women’s attitudes towards investing.

“Our poll results indicate that female investor confidence has declined year-over year and that women are becoming more conservative and risk-averse,” says Patricia Lovett-Reid, senior vp, TD Waterhouse. “But this worry is not yet translating into greater involvement in the world of investing.”

Researchers used a simple formula (Engagement + Satisfaction = Confidence) to analyze

Researchers analyzed responses to two specific questions: “how engaged are you in investing”, and “how do you feel about your investments”. From the data gathered, they arrived at a “Confidence Map” of the Canadian female investor. This year’s map shows significantly more women are concerned about their investments than they were in 2007 (54% vs. 47%).

Two-thirds of women (67%) describe themselves as “detached” from investing; that is, paying little or no attention to financial markets and having little, if any, involvement with investing. While this is consistent with last year’s findings (70%), a higher proportion of the “detached” group this year are more concerned about the state of their investments (40% in 2008 vs. 36% in 2007).

“With the waning confidence of Canadian women investors, it is surprising that more than three-in-four Canadian women still don’t have a formal financial plan. Such a plan is the first and most important step to getting one’s financial house in order and developing a long-term strategy for success,” says Lovett-Reid.

The poll results indicate a significant relationship between having a plan and feeling financially successful. For those who have a plan, 82% feel very or somewhat successful about their finances. Only 48% of those women who have no financial plan feel the same way.

“What these results tell us is that there is a direct correlation between having a financial plan and financial peace of mind,” says Lovett-Reid. “The real question for Canadian women investors is whether current economic conditions will cause them to become even more detached from the world of investing, or whether it will finally encourage them to become more engaged, to seek professional advice and to build a long-term plan. In my view, a higher level of engagement would not only give women investors a sense of purpose and empowerment in these anxious times, but would also significantly improve their long-term financial prospects.”

On a positive note, more female investors are now following a budget to manage their spending (55% vs. 50% in 2007).

“While it is encouraging to see more women involved in budgeting household spending, I would like to see more of them moving beyond this ‘comfort zone’ into serious long-term goal-setting and financial planning,” adds Lovett-Reid. “It is the long-term plan and the consistent actions we take to achieve it that will propel us towards our most important life goals.”

The national online poll was conducted between September 18-25, 2008 by TNS Canadian Facts among 1,094 Canadian women aged 25-69 who have sole or shared responsibility for household financial planning or investment decisions. It is a comprehensive annual study of Canadian women’s attitudes towards investing.

IE