BMO Financial Group
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BMO Financial Group
BMO Bank of Montreal

BMO Bank of Montreal

November 25, 2010 09:00 ET

REPEAT-BMO Report: Majority of Canadian Investors Willing to Trade-Off Gains for a Safe Haven

- 70 per cent of Canadians would be willing to give-up a percentage of investment gains for 100 per cent stability and security

- Six-in-ten are concerned with the safety of their investments since the recession

- Market-linked GICs offer an alternative with short terms and higher return potential

TORONTO, ONTARIO--(Marketwire - Nov. 25, 2010) - BMO Bank of Montreal today announced the results of a survey revealing that despite a recent upturn in financial markets, seven in ten Canadians say they are still willing to sacrifice the potential for larger gains in their investment portfolio as a trade-off for safety.

The survey, conducted by Leger Marketing, shows the majority of Canadians are still wary of the markets amidst recent optimism, with 61 per cent saying they are worried about the safety of their investments and 74 per cent looking to include investments that guarantee returns.

While traditional GICs are widely used as a way to lower risk and guarantee a return, there are other innovative GIC products available, such as market-linked GICs, which offer the potential for bigger gains with the same safety net attached.

"The stats clearly underscore the fact that Canadians are looking for ways to protect and keep more of their money," said Martin Nel, Vice President, Lending and Investment Products, BMO Bank of Montreal. "A GIC provides 100 per cent security on the principal investment, and protection doesn't have to translate into a sacrifice of gains."

For example, BMO recently launched the BMO Blue Chip GIC, which offers the shortest term available for a guaranteed investment at one year, while providing exposure to some of Canada's most reliable blue chip companies.

"We've seen tremendous growth with this exciting new product, and expect this trend to continue," added Nel. "In the current economic climate, products such as market-linked GICs are another example of how we're making money make sense for our customers." 

BMO advises Canadians looking for ways to keep more of their money to visit a local branch and speak with a BMO financial advisor.

Other key findings include:

  • Compared to two years ago, 66 per cent are more open to holding investments that guarantee regular returns
  • Regionally, those in Ontario and the Prairies are more likely to be looking for guaranteed investments (68 per cent and 69 per cent respectively), relative to those in B.C. (56 per cent)
  • Those aged 55+ are more likely to be looking for guaranteed investments (72 per cent) vs. those aged 18-34 (57 per cent)
  • Those who have an annual income of $60K+ are more likely to be looking for guaranteed investments (71 per cent) relative to those who have an annual income of less than $40K (56 per cent)

The survey was completed with 1513 Canadian adults and was conducted using Leger Marketing's Web panel between October 25 and 27, 2010. 

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