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2002 Canadian Shareowners Study: Canadian Investors Take "Back To Basics" Approach To Investing

Date 23/08/2002

It seems that Canadians are taking a traditionalist approach to their stock portfolios, this according to the 2002 Canadian Shareowners Study. Investors are holding on to their portfolios and after years of trying to make decisions on their own, they are once again seeking advice from investment professionals.

"We continue to see a strong equity investing culture in Canada, said Barbara Stymiest, CEO of the TSX Group. "Informed and confident investors are cornerstones to us continuing to sustain a strong Canadian capital market. Our goal is to build and enhance the market for these and future investors who will fuel the growth needed in Canada."

The TSX Group commissioned this independent study by Market Probe Canada to understand more about shareowners in the Canadian equity markets. The study polled 3,000 Canadians this past spring.

"Despite turbulent market conditions over the past 2 years, the investment objectives and outlook of shareholders remains steady," said Renee Colyer-Andres, Director of Research Services with the TSX Group. "Forty-six percent of Canadians are still invested in the market and while it is down from 49% in 2000 it is still ahead of the 37% who invested in 1996."

"This study found that the preferred strategy of investors is opting for stock diversification rather than getting out of the market all together, said Carol French Executive Vice-President, Market Probe Canada "We also found that the average number of stocks and funds held by individual shareholders is increasing, and investors are turning attention to established sectors like financial services, resources and real estate."

In terms of investors seeking their professional advice, the study found an increase in the use of financial planners and full service brokerages and it points to investors' desire to learn about a company's market position and future prospects and it may demonstrate an insecurity investors are feeling about their decision making ability.

TSX are the initials attached to the core businesses of the TSX Group: Toronto Stock Exchange, TSX Venture Exchange, TSX Markets and TSX Datalinx. TSX Group collectively manages all aspects of Canada's senior and junior capital markets, and is a Canadian leader in global industry, offering clients quality products and always striving to exceed their expectations. TSX Group is headquartered in Toronto and maintains division offices in Montreal, Winnipeg, Calgary and Vancouver.

Market Probe Canada is a Toronto-based research consulting firm offering expertise in customer satisfaction, loyalty and marketing research studies (such as usage and attitude, segmentation, tracking, concept testing, positioning, packaging, and corporate and brand image). MPC provides consultative customized solutions to a range of national and international clients in finance, telecommunications, packaged goods, manufacturing, retail, IT, and government.