(April 19 – 10:55 ET) – Canadians are showing far more confidence in segregated funds and fixed income investments this spring than at any time in the past year, according to the Manulife Investor Sentiment Index released today by Manulife Financial.

“We’ve seen a strong climb in investors’ confidence right across the board since last fall, but particularly in segregated funds and fixed income investments,” said Trevor Matthews, Manulife’s executive vice-president of Canadian Operations. “That likely reflects the interest-rate environment and the fact that many Canadian investors appear to be far more enthusiastic now about a wide range of investing.”

“By far, the strongest change in the past three months has been a renewed interest in segregated funds,” said Matthews, referring to a double-digit increase in that index. “Investors remain very focused on interest rates, personal spending, stock market performance and market volatility, and their rising interest in segregated and fixed investments likely reflects recent changes in interest rates and stock markets.”

Stocks, balanced funds, segregated funds, mutual funds, and fixed income indices all reached their highest levels since Manulife launched its investor sentiment survey in early 1999.

Registered Retirement Savings Plans ranked highest in the Manulife-Gallup survey at +66 points, up two points from the January survey. The index reflects 75.7% of respondents who feel it is a good or very good time to put money into RRSPs, while 9.8% say it’s a bad time.

Registered Education Savings Plans also showed an increase from three months ago, scoring +53 points, up four points from January, and back to its previous high reached in mid-April, 1999.

Mutual funds rated +47 points, reflecting stronger sales and an increase of four points from the mid-winter index. More than half of Canadians – 61.3% – think mutual funds are attractive now, but 14% say it’s a bad time for funds in general. Segregated funds were ranked at +40 points, up 12 points from January and its highest ranking since the index was created.

The survey asked Canadians about their views toward investing in a range of investments and investment vehicles. Gallup polled 1,002 Canadians aged 18 and older, between March 13 and 19, 2000. The results have a margin of error of +/- 3%, 19 times out of 20.
-IE Staff