What are Credo WIBO Reports?

WIBO reports are a tool for use by Canadian financial advisors and investors.  The tool enables people to explore the difference in investor outcomes that are delivered by different financial institutions. They are based on ongoing research with the Canadian investor community.  Credo has surveyed more than 30,000 investors in order to establish a data set that enables these analyses.

Findings

Credo studied a subset of investors from our complete data set.  This analysis included more than 2,500 investors in an exercise that compared the investor outcomes of the users of one company’s funds with the investor outcomes of the users of the other company’s funds.

  • 1,500 users of CI Investments; and
  • 1,154 users of Mackenzie Investments

We asked them a host of questions… but one question, in particular,  is used to represent investor outcomes:

“Which of the following best characterizes how you feel?

1. I am far behind where I expected to be financially.
2. I am behind where I expected to be financially.
3. I am about where I expected to be financially.
4. I am ahead of where I expected to be financially.
5. I am well ahead of where I expected to be financially.

 

Exhibit 1 below shows the high-level results. Reviewing this graphical analysis, it appears that the distributions we found are very similar. Statistical testing produces evidence that we cannot rule out that the differences between the two companies’ investor outcomes didn’t happen by chance alone.

 

Exhibit 1. Comparing How Investors Feel: CI Investments vs Mackenzie Investments

 

Investors who elected to invest in CI funds are no more or less likely to feel that they are either ahead or well ahead of their expectations than are investors who elected to have Mackenzie manage their money.  Further, they are no more or less likely to feel behind or far behind Mackenzie users.  The probability that there is no difference between CI’s investor outcomes and Mackenzie’s investor outcomes results happened by chance alone is p=0.6379. The calculation of this is presented in Exhibit 2.

 

Exhibit 2. Detailed test of independence (Chi Squared) analysis comparing CI investors claimed outcomes with Mackenzie’s investor outcomes.

Note: This test was conducted on April 8 2018 and will be re-run in three months on July 8 for comparison over time.

 

Highlights

Some highlights from this research:

  1. CI investors were no more likely than Mackenzie investors to feel behind their financial expectations than Mackenzie. About 23% of each company’s investors would be expected to feel behind their expectations. By contrast, Credo’s research found that 28% of investors, generally, would be expected to feel behind their expectations. Both CI and Mackenzie do better than that with respect to investor outcomes.
  2. About 10% of each company’s clients would be expected to feel far behind their financial expectations.  By contrast, 15% of Canadian investors in general indicate that they feel far behind their expectations.  Both CI and Mackenzie do better than that with respect to investor outcomes.
  3. CI investors were no more likely to feel ahead of their financial expectations than investors who had opted for Mackenzie. Both companies would be expected to have about 23% of their clients indicate that they feel ahead of their financial expectations. By contrast, only 12% of Canadian investors in general indicate that they feel ahead of their expectations.  Both CI and Mackenzie do better than that with respect to investor outcomes.
  4. About 5% of both companies’ investors would be expected to feel well ahead of their financial expectations.  Only about 3% of Canadian investors in general indicate that they feel well ahead of their expectations.  Both CI and Mackenzie do better than that with respect to investor outcomes.
  5. About 42% of each company’s investors would be expected to indicate that they feel on par with their financial expectations.  This is consistent with what Credo found in the investor population overall.

This offers sufficient evidence that, given the choice of recommending either Mackenzie or CI funds, a financial advisor should be indifferent between the two companies on the basis of investor outcomes.  Both companies produce investor outcomes that are better than the outcomes experienced by Canadian investors in general, however.

Note

This research was NOT funded by either CI or Mackenzie.  It was conducted independently and objectively by Credo Consulting Inc. without prejudice.

If you have questions about this or other Credo research, your welcome to call us.