The 2009 CSA Investor Index:

Toronto, ON - The 2009 CSA Investor Index, conducted by Ipsos Reid on behalf of the Canadian Securities Administrators, finds that while Canadians express optimism about their personal finances and confidence in their abilities as investors, most are not seeking information or advice about investing.

Canadians are much more likely to agree (48%) than to disagree (27%) that 2010 will be a good year for them financially. In addition, most Canadians (56%) say they are confident in their ability to make investment decisions (as compared to 38% who say they are not confident). Among the 65% of Canadians who currently hold savings or investments, most say they will make no changes (52%) or will invest more in the coming year (31%), while fewer than one in ten (8%) say they will reduce their investments.

While they are optimistic and confident as investors, the findings show that many Canadians are not seeking out information or and advice on investing. For example, three in four Canadians (75%) agree that they know where to go when they need more information about investing in general, but most (66%) have not sought information about investing in the past 12 months. Similarly, two in three (64%) consider having a financial plan to be important, although only one in four Canadians (25%) say they have a formal, written financial plan. Fewer than half of Canadians (46%) say they have a financial advisor.

Most Canadians (85%) recognize that, whether one contributes to a pension plan or saves in some other way, it is important to build up their personal savings and investments, yet six-in-ten Canadians (60%) worry that they do not have enough savings to meet their financial needs. While most Canadians (65%) say they have set aside savings or investments for the future, one-in-three Canadians (35%) say they have not done so, representing an increase of eight points since 2006 (when 27% said they did not have any savings or investments set aside).

These are a few of the key findings from the 2009 CSA Investor Index, released today to mark the launch of Investor Education Month in October. The study was designed to explore Canadians' knowledge of and behaviours with respect to investing, and also Canadians' experience with fraudulent investments. This research builds on earlier studies conducted in 2007 and 2006.

The study included a series of questions pertaining to Canadians' experience with fraudulent investments. These findings show that:

• Nearly four-in-ten Canadians (38%) have been approached with a fraudulent investment, while four per cent have invested money in what turned out to be an investment fraud.
• The top three ways Canadians were most recently approached with investment fraud have not changed since 2006: via email (33%), by a stranger on the telephone (28%), or through a friend, family member, neighbour or co-worker (18%).
• Those approached with a suspected fraudulent investment are more likely to describe their level of trust with the person approaching them as either very or somewhat strong (13% this year compared to 5% in 2007).
• Fraud victims are more likely to agree with the idea that the riskier the investment is, the greater the reward (48%, compared to 39% on average), and that most people can be trusted (46%, compared to 38% on average) and also that if you don't act immediately you may miss a good opportunity (30%, compared to 22% on average).

The study also considered views on young people and investing. The results find that:

• Young Canadians aged 18 to 34 are less confident than other age groups about making investment decisions (48% are very or somewhat confident compared to 56% on average) and are less likely to know where to go for information about investing (67% compared to 75% on average).
• A majority of parents (78%) agree that teaching children financial skills is among the most important things a parent can do for their child, and a majority (69%) say they are confident in their ability to teach their children about personal finances and investing. Yet, fewer than half of Canadian parents (46%) have taught their children about finances and investing.
• Only one in five Canadians (20%) consider a parent to be the most responsible for teaching young people about personal finances and investing (compared to 51% who consider a financial advisor to be most responsible).

The 2009 CSA Investor Index was conducted by Ipsos Reid and involved two phases of survey research, a primary phase of research conducted online and a separate wave of research conducted by telephone. During the online research, 6,319 Canadian adults were interviewed between July 20 and 27, 2009. These interviews were comprised of two groups: a general population sample of 5,521 Canadian adults, and an over-sample of Canadians who say they have been victims of financial fraud (providing a total sample of 1,034 victims of fraud). Separately, Ipsos Reid asked several questions in a national telephone survey of 1,004 Canadian adults between July 21 and 23, 2009. This telephone survey research was conducted in order to verify distributions from the online survey on key weighting variables.

For more information on this news release, please contact:
Will Daley
Associate Vice President
Ipsos Reid
Public Affairs (613) 688-8979
[email protected]

About Ipsos Reid
Ipsos Reid is Canada's market intelligence leader, the country's leading provider of public opinion research, and research partner for loyalty and forecasting and modelling insights. With operations in eight cities, Ipsos Reid employs more than 600 research professionals and support staff in Canada. The company has the biggest network of telephone call centres in the country, as well as the largest pre-recruited household and online panels. Ipsos Reid's marketing research and public affairs practices offer the premier suite of research vehicles in Canada, all of which provide clients with actionable and relevant information. Staffed with seasoned research consultants with extensive industry-specific backgrounds, Ipsos Reid offers syndicated information or custom solutions across key sectors of the Canadian economy, including consumer packaged goods, financial services, automotive, retail, and technology & telecommunications. Ipsos Reid is an Ipsos company, a leading global survey-based market research group.

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