BMO Nesbitt Burns Study Identifies Canada's "Savviest" Investors

BMO Nesbitt Burns Study Identifies Canada's "Savviest" Investors 
- B.C. investors edge out Alberta's for highest score on BMO Nesbitt
Burns' Savviest Investor Index 
- Study finds 84 per cent of Canadians are generally confident that
they're managing their investments well; however, many don't have a
financial plan, know their investor profile or what investments they
hold 
- An investment advisor can help with managing your portfolio,
creating a written financial plan and providing other advisory
services such as insurance, business succession planning and tax &
estate planning 
TORONTO, ONTARIO -- (Marketwired) -- 07/10/13 -- British Columbians
have extra reason to celebrate this summer, as their province has
scored the highest on BMO Nesbitt Burns' Savviest Investor Index. 
British Columbia ranked in first place in BMO Nesbitt Burns' national
bi-annual study, with a score of 92. This narrowly beat out Alberta,
which held the top spot in 2011. This year, Albertans scored 88 in
financial "savvy", followed by the Prairies (86), Ontario (82),
Quebec (76) and Atlantic Canada (74). 
BMO Nesbitt Burns' Savviest Investor Index measures Canadian
investors' attitudes and actions. Specifically, "savvy" is determined
by several criteria, including:  


 
--  Whether they have a financial plan 
--  Awareness of their investment profile 
--  Amount of attention they pay to market trends 
--  General knowledge about investments and how various factors can impact
    their portfolio 

 
British Columbian investors led the country in a number of key
categories, including having a financial plan, investment product
knowledge and understanding how various factors can impact their
portfolios.  
"While congratulations should go out to British Columbia for leading
the nation in our study, it was a tight race coast to coast and all
regions should take pride in how well they scored," said Bill Brown,
Senior Vice President and Managing Director, National Sales Manager,
BMO Nesbitt Burns.  
Canadians Confident, But Gaps Exist 
More generally, the study found that the vast majority (84 per cent)
of Canadian investors are confident that they are managing their
investments well. However, despite this sentiment, the study also
found that: 


 
--  One-third do not know what specific investments they hold within their
    portfolios. 
--  Half have a written financial plan, and only one-in-three have updated
    it in the last year. 
--  Just over half of investors (56 per cent) know their investment profile
    (which identifies financial goals and risk tolerance).

 
"While it's encouraging that Canadians are optimistic about their
ability to manage their investments, it's concerning that such a
significant number don't have a written financial plan and are
unclear about what investments they hold," said Mr. Brown. "The key
to achieving your long-term financial goals is creating a financial
plan that starts today. Whether you are saving for a house, a family
or a well-earned retirement, a personalized financial plan will help
you achieve your goals." 
Mr. Brown added that, for those who are unsure about how to go about
managing their wealth, enlisting the assistance of an investment
advisor can be a good option. An investment advisor can provide
custom-tailored, holistic wealth management strategies that span
investment management, financial planning, insurance, tax, estate and
other advisory services.  
Other Key Study Findings: 


 
--  Product Knowledge: Canadian investors are most knowledgeable about GICs
    (58 per cent) and mutual funds (55 per cent), and least knowledgeable
    about ETFs (19 per cent). 
--  Most investors understand how their investments are impacted by interest
    rates (80 per cent), currency rates (66 per cent) and credit ratings (62
    per cent). They are least knowledgeable about how stock market
    fluctuations (54 per cent) and corporate earnings (38 per cent) impact
    their investments.  
--  Seniors are the most likely to know what specific investments they hold
    (77 per cent).

 
Survey results cited in this report are from online interviews with a
random sample of 1,000 Canadians 18 years of age and over, conducted
May 9-13, 2013.
Contacts:
Media contacts:
Rachael McKay, Toronto
(416) 867-3996
rachael.mckay@bmo.com 
Valerie Doucet, Montreal
(514) 877-8224
valerie.doucet@bmo.com 
Laurie Grant, Vancouver
(604) 665-7596
laurie.grant@bmo.com
 
 
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