RPT-BAY STREET-Canada wealth managers see shift to equities in 2013

Mon Feb 11, 2013 7:14am EST
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* Asset managers waiting for increased risk appetite

* They see gains in U.S., global equities; Canada weaker

* Solution-based marketing takes investor focus off stocks

By Andrea Hopkins

TORONTO, Feb 10 (Reuters) - Buoyed by rising global stock markets, Canadian asset managers are increasingly certain that 2013 will be the year that investors who were burned by the financial crisis make a return to equity-linked products.

As mutual fund developers try to read investor sentiment in Canada's traditionally heavy first-quarter sales period, money continues to flow into funds marketed with the reassuring "income" or "yield" tags that are favored by investors who lost money in the 2008-09 stock market meltdown.

"We haven't seen a shift yet - it's very much balanced products and fund-to-fund solutions that are still selling in excess of 85 percent of what we've seen," said Neil Macdonald, managing director of Scotia Asset Management, a unit of Bank of Nova Scotia.

"At some point there is going to be a massive shift to equities again, and you just want to make sure that you're ready for that."   Continued...