Canadians’ investment confidence rebounded and interest in investing reached its highest level in 18 months at the end of 2003, says a leading insurance and wealth management company.

A poll taken for Manulife Financial in December found Canadians regaining optimism about all types of investments and vehicles, with balanced funds, segregated funds and RESPs leading the way. Real estate remained the overall favourite place to put money.

For the first time in five years since Manulife Financial launched its quarterly investor sentiment index, all 10 categories of investments and vehicles gained strength over a previous national poll in September.

The overall Manulife Investor Sentiment Index climbed seven points to +23, its highest level since mid-2002 and only the second time it reached that level since the 9/11 attacks on the United States.

“More Canadians are seeing positive developments in a range of markets and are keeping their focus on long-term investment goals,” said Bruce Gordon, Manulife Financial’s executive vice-president and general manager of Canadian operations.

“Canadians generally continue to favour safe places to invest – particularly their homes, RRSPs, RESPs and investment real estate – while other areas are also gaining support.”

A separate question found most Canadians surveyed (55 per cent) feel they’re in better financial shape than five years ago, when the investor sentiment index was first launched. Another 22 per cent feel they’ve held their financial ground since 1999, while 23 per cent said they feel worse off.

The overall Winter 2003 Manulife Investor Sentiment Index, based on a survey of 1,002 Canadians by Maritz: Thompson Lightstone, was up from last December’s level of +19.

The quarterly index monitors what Canadians say they feel about 10 different investment categories and vehicles. The index reflects the percentage of those surveyed who say they believe it is a good or very good time to invest, minus the percentage who feel the opposite.

Among six investment categories in the quarterly survey, the largest swing since the fall appeared in the index for investing in balanced funds, reflecting renewed strength in equity markets and continuing low interest rates. After a mid-year slowdown in interest in housing, investing in their own homes and investment properties continue to be the two leading investment categories and the most popular places for Canadians to put their money.

The Manulife Investor Sentiment Index is determined by the following six investment categories: n Investing in their own homes remains the most popular investment for Canadians, climbing seven points from September's results to +56.

* Real estate other than their own homes was the next most popular investment at +37.

* Balanced funds showed a strong gain of 11 points to reach +22, with 44 per cent of those surveyed stating that balanced funds are a good or very good place to invest, compared to 22 per cent who felt the opposite.

* Fixed income investments (including GICs, annuities) rose seven points to +20.

* Renewed stability for stock markets helped to generate a seven-point climb in the index for investing in equities, following a 12-point increase in the September survey. At +3, the stocks index remains relatively low, but entered positive territory for the first time since mid-2002.

* Cash (including savings accounts) registered a slight increase from the September survey, up three points, and remains the least favourite, making it the only category in the survey that remains in negative territory.