Press release from CNW Group
Nearly half of financial advisors predict no growth for Canadian economy
Wednesday, June 26, 2013
Nearly half of financial advisors predict no growth for Canadian economy07:02 EDT Wednesday, June 26, 2013
Sun Life survey finds advisors forecast economic flatline for rest of 2013
TORONTO, June 26, 2013 /CNW/ - Canadian financial advisors are predicting zero growth in the Canadian economy during the second half of this year. That's according to the Summer 2013 edition of the Sun Life Advisor Sentiment Index released today by Sun Life Global Investments. The survey, conducted by Ipsos Reid from April 5 to May 22, 2013, measures financial advisors' opinions on capital markets and key economic factors.
Advisors are feeling positive about capital markets around the world, with bulls outnumbering bears by more than two to one. Fifty-four per cent of advisors polled feel bullish about the markets generally, with their optimism focused on U.S. equities. Over 60 per cent of advisors say they are either very bearish or somewhat bearish on Canadian and U.S. government bonds.
"The U.S. equities market has seen record highs in the first half of 2013," said Sadiq S. Adatia, Chief Investment Officer, Sun Life Global Investments. "This market has consistently performed well and this trend is predicted to continue."
While the U.S. markets are seeing upward movement, advisors are overall bearish on Canada.
- Forty-four per cent of advisors see zero economic growth in Canada for the second half of 2013.
- Another nine per cent are forecasting that the Canadian economy will contract.
- Twenty-two per cent of advisors are at least somewhat bearish on the S&P/TSX Composite Index.
- Nearly 40 per cent expect the index to be flat by the end of the year.
"The Canadian economy has weathered the financial downturn fairly well," said Adatia. "Though no growth is expected over the next six months, we believe the economy will remain stable during this period."
Read the full Advisor Sentiment Index report for more key findings and results.
These are some of the findings of an Ipsos Reid poll conducted between April 5 and May 22, 2013 on behalf of Sun Life Financial. For this survey, a sample of 345 Canadian financial advisors was interviewed online. The survey participants represent a cross-section of the Canadian financial services industry including affiliated and independent financial advisors. Just over half (53%) of the survey respondents are members of the Mutual Fund Dealers Association (MFDA) and just under half (44%) are members of the Investment Industry Regulatory Organization of Canada (IIROC). The remainder are members of both. A survey with an un-weighted probability sample of this size and a 100% response rate would have an estimated margin of error of +/- 5.1 percentage points, 19 times out of 20, of what the results would have been had the entire population of Canadian financial advisors been interviewed. All sample surveys and polls may be subject to other sources of error, including, but not limited to coverage error, and measurement error.
This press release may include future or forward-looking statements that are speculative in nature and which cannot be relied upon. There is no guarantee that these events will occur or in the manner speculated. Information provided in this press release is compiled from sources believed to be reliable at the time of release, but no representation or warranty, express or implied, is made as to its accuracy. Information and commentaries expressed herein are subject to change without notice and are provided in good faith without legal responsibility. This press release is not intended to provide specific financial, tax, insurance, investment, legal or accounting advice and should not be relied upon in that regard and does not constitute a specific offer to buy and/or sell securities.
About Sun Life Global Investments (Canada) Inc.
Sun Life Global Investments (Canada) Inc. brings together the strength of one of Canada's most trusted names in financial services with some of the best asset managers from around the world. With a focus on risk management, our rigorous selection and monitoring process provides access to leading asset managers who use insight and innovation to manage high quality investment solutions for Canadian investors. For more information, visit: www.sunlifeglobalinvestments.com.
About Sun Life Financial
Sun Life Financial is a leading international financial services organization providing a diverse range of protection and wealth accumulation products and services to individuals and corporate customers. Sun Life Financial and its partners have operations in key markets worldwide, including Canada, the United States, the United Kingdom, Ireland, Hong Kong, the Philippines, Japan, Indonesia, India, China, Australia, Singapore, Vietnam, Malaysia and Bermuda. As of March 31, 2013 the Sun Life Financial group of companies had total assets under management of $571 billion. For more information please visit www.sunlife.com.
Sun Life Financial Inc. trades on the Toronto (TSX), New York (NYSE) and Philippine (PSE) stock exchanges under the ticker symbol SLF.
Note to Editors: All figures in Canadian dollars.
SOURCE: Sun Life Financial Inc.
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