The Year Ahead: Canadian Investors Optimistic About Personal Investments, Domestic Economy

- TD Investor Insights Index reveals market confidence -
- Infographic with snapshot of Canadian investor confidence available at:
http://td.mediaroom.com/image/Investor+Insights+IG+-+FINAL.JPG

TORONTO, June 17, 2013 /CNW/ - Despite reports of a cooling Canadian housing market and a slow-growth U.S. economy, a TD study reveals that Canadian investors have great expectations for the next 12 months. According to the first TD Investor Insights Index, which will serve as a benchmark for future reports on investor sentiment, Canadian investors are optimistic about both their personal investment portfolio and the Canadian economy. The study served as a barometer for general investor outlook and looked at external factors influencing Canadians' investment decisions and their confidence in domestic and foreign markets.

The majority of investors polled expect the Canadian economy will improve or at least stay the same over the next 12 months (26% and 55% respectively). Many investors also expect a great or fair bit of improvement for their investments in the next 12 months (41%) and half think their investments will stay about the same (51%). The study suggests that past market performance could be colouring this bright outlook.

"Canadian investors have a positive view of current market conditions - both domestically and across North America," said Bob Gorman, Chief Portfolio Strategist, TD Wealth. "While we anticipate moderate growth within the Canadian economy despite little change in key Canadian commodity prices, recent U.S. stock market performance is likely a factor in shaping that positive view."

Outlook, Impact and Expectations:

The TD Investor Insights Index found that recent portfolio performance has a big influence on expectations. Canadian investors who saw improvements in their personal portfolio over the past 12 months are more likely to expect continued growth over the next year.

• Canadian investors who saw improvement versus those who experienced losses:
  • 65% expect improvement versus 24% who experienced a loss
  • 30% expect their investments to stay the same versus 53% who experienced a loss
  • 3% expect a decrease versus 19% who experienced a loss

Still, the general sense of optimism is apparent even among those who experienced losses. Despite this year's performance, investors who experienced a loss are still more likely to anticipate improvement than decline.

"For investors who are feeling optimistic and want to get off the sidelines, there are many options available to fit within your goals and strategies," said Kim Parlee, Vice President, TD Wealth Management. "Keep in mind that understanding the different investment vehicles, from guaranteed income products, to riskier options that may yield greater returns, is an essential part of building a balanced portfolio suited to your situation and risk tolerance."

The positive outlook isn't limited to personal investments. Canadian investors expect to see improvement or consistency in the domestic economy, as well as in the United States.

• One-quarter of Canadian investors expect to see economic improvement in North America (Canadian economy: 26%, U.S. economy: 27%)
• About half of Canadian investors expect the North American economy to stay the same (Canadian economy: 55%, U.S. economy: 41%)

Less rosy, however, is the outlook for the global market.

• Only 10% of Canadian investors expect improvement for the world economy (42% expect it to worsen, 43% expect it to stay about the same)

"While there is no escaping some degree of market volatility, investors can still find value and good returns with a balanced portfolio. We expect Canadian stocks and U.S. large caps to continue delivering positive returns over the balance of 2013, while companies with steady increases in sales, earnings and dividends outperform the more volatile resource sectors," added Gorman.

About the TD Investor Insights Index

Head Research was commissioned to conduct a national survey of N=1,002 respondents among adult Canadian investors who purchased or sold investments in the past 12 months and who currently own at least one investment product. During fieldwork, quotas were managed to obtain a sufficient number of investors of different ages, resulting in a slight over-representation of younger investors. The data in this report have been weighted to reduce the proportion of younger investors to their natural level within adult Canadian investors. Respondents were sourced from available non-probability based panels. Fieldwork was conducted between April 8 and April 12, 2013.

About TD Wealth

TD Wealth represents the products and services offered by TD Waterhouse Canada Inc. (Member - Canadian Investor Protection Fund), TD Waterhouse Private Investment Counsel Inc., TD Wealth Private Banking (offered by The Toronto-Dominion Bank) and TD Wealth Private Trust (offered by The Canada Trust Company).

PDF available at: http://stream1.newswire.ca/media/2013/06/17/20130617_C8652_DOC_EN_28078.pdf

SOURCE: TD Waterhouse Group, Inc.