Canadian Investors Looking To Diversify


    Canadians investing for retirement are increasingly looking to diversify their portfolios with global equities in an attempt to boost returns, says a poll by CIBC. Despite the lower loonie, as many as 41 per cent of investors say they are looking for opportunities outside of Canada, up sharply from only one third (31 per cent) last year. Of these, 15 per cent plan to add exposure to the U.S., 15 per cent intend to invest in emerging markets, and 11 per cent are looking to invest in developed markets. “While it’s natural for investors to have a ‘home bias’ by overweighting their portfolio to domestic stocks, taking a Canada-only approach can hurt returns,” says Luc de la Durantaye, managing director, asset allocation and currency management, CIBC Asset Management. “Canada accounts for only about three per cent of the world’s market capitalization, so diversifying geographically can strengthen your portfolio for the long-term. It significantly broadens your investment options and helps to mitigate risk.”