Financially literate Canadians more likely to feel empowered, finds survey

New data from Schroders highlights significance of age and investment knowledge

Financially literate Canadians more likely to feel empowered, finds survey

As investors gain more access to investment platforms and information, there’s a greater opportunity than ever for people to take control of their financial futures, as well as influence the way companies conduct their businesses.

With more people feeling they can make changes with their investment dollars, the Schroders Global Investor Study 2022 (GIS) examines what it means to be an empowered investor, analyzing the actions and viewpoints of more than 23,000 investors globally.

Focusing on its Canadian findings, Schroders found those who described themselves as expert or advanced investors were more likely than beginner/rudimentary ones to feel they should have the power to influence companies as shareholders (95% vs. 53%).

When it comes to prioritizing an alignment between their investments and convictions, age was also found to be a factor. Three quarters (76%) of Canadian investors between 38 and 50 years old said they felt it’s important that the funds they invest in were built around their values and principles, compared to 62% of those 51 to 70 years old.

Looking at Canadians’ desire to access more exclusive assets, more than half of Canadian investors surveyed said they wanted to invest in real estate (57%), private equity (56%), and physical assets (52%). Other in-demand asset types included digital assets (50%), insurance-linked securities (49%), and infrastructure finance (43%).

The survey also found that a four-fifths majority of expert/advanced Canadian investors (81%) feel they’re sufficiently knowledgeable to make the right decisions for their financial future. In contrast, only three fifths of intermediate investors (61%) and just over one fourth of beginner investors (27%) could say the same.

When asked who should take responsibility for ensuring people have adequate knowledge on personal financial matters, 56% of Canadian respondents said it should be financial providers, while nearly as many (53%) said it should be educational institutions and schools.

Just about half (49%) said independent financial advisors should have a role to play, while around one third agreed it should be the government/regulators (34%) or people themselves (32%) who should be responsible.