Canadian Investors Flee US Equities Amid Inflation Concerns

A recent survey by Marsh People and Investments Canada has found that more than half (52%) of Canadian asset owners are planning to reduce their U.S. equity allocations in the next 12 months.

This is a significant trend, as Canadians are more likely to move away from U.S.-based investments compared to other regions, with an average of 40% among North American asset owners and 31% from Asia-Pacific and 33% from Europe, the Middle East, and Africa.

The survey received responses from 430 global investors representing over $5 trillion in assets under management. Canadian investors accounted for 7% of these respondents.

The reasons behind this shift are multifaceted. Almost half (49%) of North American investors cited inflation as their top factor spurring material portfolio changes, followed by AI disruption, geopolitical risk, slowing global growth, and interest rates.