Investors looking worldwide for opportunities: survey

Enthusiasm for global markets is expected to climb over the next decade, a survey of more than 13,000 people worldwide indicates.

The Franklin Templeton Global Investor Sentiment Survey found that half of respondents plan to invest outside their home country in 2011. Those numbers increase over the long-term, with 62 per cent of all respondents planning to invest in global markets over the next 10 years. At present, only 34 per cent of respondents invest outside their domestic market.

"The global economy is improving and investors are looking worldwide for opportunities," said Greg Johnson, president and CEO of Franklin Resources Inc. Franklin Resources is the San Mateo, CA-based parent of Franklin Templeton Investments Corp. "A diversified portfolio today is no longer just a mix of asset classes but also a mix of geographies."

The sweeping survey, conducted in January across 12 countries, indicates a willingness among respondents to consider global opportunities. Sixty seven per cent of respondents believe their local stock market will perform the same or worse than the rest of the world in 2011.

Canada versus the world

Canadians have a bullish outlook on their stock market when compared to the rest of the world. Forty-three per cent of respondents think Canada's stock market performance in 2011 will be better than the rest of the world, an optimistic outlook surpassed only by respondents in India (61 per cent), Brazil (52 per cent) and Chile (46 per cent). Italians were the most pessimistic with only 11 per cent expecting their country's stock market to trump global returns this year.

A majority of Canadians had no knowledge of the stock market's performance. Fifty-four per cent surveyed believed the Canadian equity market was either flat or down in 2010. In fact, theToronto Stock Exchange reported a gain of 14 per cent last year. Of the countries surveyed, respondents in India were the most informed when it came to actual local market performance in 2010.  Seventy-six per cent of respondents indicated their market rose last year. The Bombay Stock Exchange rose 18 per cent in value last year.

"Despite their optimism about the markets, many Canadians are poorly prepared for the financial future," said Don Reed, president and CEO of Franklin Templeton Investments Corp. inToronto. "Our survey found 57 per cent do not have a financial plan for retirement and 45 per cent are worried they will not have enough to retire. A financial advisor is critical when it comes to meeting your long-term goals."

Methodology

The Franklin Templeton Global Investor Sentiment Survey, conducted by ORC International, an Infogroup company, included responses from 13,076 individuals in 12 countries: Brazil, Chileand Mexico in Latin America; Hong Kong, India, South Korea and Singapore in Asia; Germany, Italy and the U.K. in Europe; and the U.S. and Canada in North America. Survey respondents were between the ages of 18 and 64 in all countries, except in the U.K. and U.S. where survey respondents were 18 years of age and older. Surveys were completed from January 6 to 17 in all countries except the U.S. where the survey was completed from January 6 to 7. Data were weighted to make the results representative in each country.