Canadians investing for retirement are increasingly looking to diversify their portfolios with global equities, says a new CIBC poll.
The poll, which surveyed about 1,000 Canadians who have retirement portfolios, found that, despite the impact of the lower loonie, 41% of respondents are looking for opportunities outside of Canada, up sharply from only 31% last year.
Of those looking for international opportunities, 15% plan to add exposure to the U.S. through stocks and mutual funds, while another 15% intend to invest in emerging markets and 11% want to stick to developed markets outside of the U.S.
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“Canada accounts for only about 3% of the world’s market capitalization, so diversifying geographically can strengthen your portfolio for the long term,” says Luc de la Durantaye, managing director of Asset Allocation and Currency Management at CIBC Asset Management.
Also, consider that over the past 15 years Canada’s benchmark S&P/TSX Composite Index hasn’t generated the best returns, when compared to global peers. Last year, Japan’s Nikkei was the top performer, rising 9.2%, for example, while the U.S. Standard & Poor’s 500 Index ranked first in 2014, returning 13.7%.
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Further, the poll says recent volatility and the lower loonie are prompting nearly a quarter (22%) of investors to look at alternative asset classes, such as real estate and infrastructure, as a way to diversify and gain exposure to growth. Another 26% want to learn more about these areas of the market.
Read: Alternative assets taking on new prominence: survey
This article was originally published on Benefits Canada‘s companion site, Advisor.ca