#12020 Investor Index Manitoba Custom Report October 2020| DRAFT REPORT INNOVATIVE NOVAT RESEARCH GROUP THE MANITOBA SECURITIES COMMISSION STRICTLY PRIVILEGED AND CONFIDENTIAL#22020 CSA Investor Index Manitoba Results These materials are intended for use as general information to understand investor behaviour and the estimated incidence of investment fraud in Manitoba. They are not intended to provide specific investment, tax, legal, or accounting advice and should not be relied on for that purpose. The conclusions drawn and opinions stated are those of the authors. Research for this study was conducted in August 2020. All rights in these materials are reserved with the exception of non-profit organizations involved in fraud awareness and investor education where the authors grant permission to reproduce, without modification, excerpts for educational use and policy-making purposes in Manitoba. This report has been prepared by Innovative Research Group Inc. for the Manitoba Securities Commission. 2#32020 CSA Investor Index About the Canadian Securities Administrators The Canadian Securities Administrators (CSA), the council of securities regulators of Canada's provinces and territories, coordinates and harmonizes regulation for the Canadian capital markets. The CSA protects Canadian investors from unfair, improper, or fraudulent practices and fosters fair and efficient capital markets. Part of this protection is educating investors about the risk, responsibilities and rewards of investing. Through its Investor Education Committee, the CSA works to facilitate access to objective investment information and to help retail investors make informed investment decisions. To learn more about the CSA, visit www.securities-administrators.ca. CSA ACVM Canadian Securities Administrators Autorités canadiennes en valeurs mobilières About Innovative Research Group Innovative Research Group, Inc. (INNOVATIVE) is a national public opinion research and strategy firm with offices in Toronto and Vancouver. The firm provides critical information needed to assess and overcome public affairs and corporate communications challenges, identify and evaluate potential solutions, and monitor outcomes. To learn more about INNOVATIVE, visit www.innovativeresearch.ca. INNOVATIVE RESEARCH GROUP 3#4Five Key Stories In most ways, investors in Manitoba look very similar to investors all across Canada 1 2 3 4 5 In Manitoba, 45% say they hold securities while 20% have no savings. This is in line with 46% who invest across Canada and 24% with no savings. In both cases, mutual funds are by far the most common product held (47% in each sample). Overall portfolio size and frequency of transactions is also very similar in Manitoba to the rest of the country. Increasingly, more investors in Manitoba say they work with an adviser than other Canadian investors Nearly 8-in-10 (77%) Manitoba investors say they currently have a financial adviser - 8-points higher than Canada-wide (69%), and this gap has been widening over time. While the share of investors with an adviser across Canada has remained steady since 2012 at 7-in-10, Manitoba investors with an adviser have increased from 70% in 2012 to 73% in 2017 and 77% in 2020. Fraud approaches and victimization are both steady, while methods of approach are evolving The share of Manitobans saying they have been approached with a possible fraud is steady since 2017 at 21% and similar to 18% Canada-wide. Fraud incidence in Manitoba (3%) is also on par with the incidence of 4% across Canada. However, those saying the most recent approach was by email is down 13-points in MB since 2012 from 45% to 31% while is has been more consistent nationally (21% in 2012 to 25% in 2020). And while introduction through friends, family, or coworkers has risen across Canada from 10% in 2012 to 15% in 2020, it has remained consistent in Manitoba at 9%. Economic optimism in Manitoba is down substantially in 2020 - as it is all across Canada Optimism about economic growth has dropped by nearly half in Manitoba since 2017 (from 42% to 24%) and the same can be said about optimism about unemployment (from 30% to 17%). Pessimism about the unemployment rate in Manitoba has seen a particularly large jump since 2017 of 35- points (from 22% to 57%). These changes are consistent with the changes Canada-wide, but when we look back to 2012, optimism about economic growth and unemployment was higher in Manitoba compared to across Canada that year, while it has now been at about the same level since 2017. How to reach Manitobans with investing information depends on their age and where they live Residents of Central/North Manitoba are less likely to look to social media for investing information (just 16% vs. 29% in South/West and 33% in Winnipeg). This is despite the fact that investors in this region are much more likely to look to 3rd party sources in general (e.g. friends/family or marketing materials over their bank/adviser). When it comes to information about fraud specifically, Manitobans over 55 are most likely to look to the news (40%) or their advisers (30%) while those under 35 generally look online (46%) and turn to friends and family (30%). 4#5About the 2020 CSA Investor Index Methodology and Approach 6 7 Respondent Profile 12 Table of Contents Investment Knowledge Index Use of Investment Advisers Risk Tolerance & Confidence Investment Fraud in Canada Fraud Attitudes and Perceptions 22 35 45 53 64 Optimism in the Economy 74 Market Expectations 81 Sources of Information 88 Awareness of Securities Regulators 99 Robo-Advisers 102 INNOVATIVE RESEARCH GROUP#6About the 2020 CSA Investor Index and the Manitoba Custom Report Background: The 2020 CSA Investor Index Study is the sixth survey on investment knowledge, investor behaviour, and incidence of investment fraud among Canadians conducted by the Canadian Securities Administrators (CSA). The previous five surveys were conducted in 2006, 2009, 2012, 2016, and 2017. The information and analysis from these surveys are intended to help the CSA Investor Education Committee develop and deliver programs to help investors make appropriate investment decisions and recognize, avoid, and report suspected fraudulent investments. Research objectives: The CSA commissioned Innovative Research Group (INNOVATIVE) to design and conduct the 2020 CSA Investor Index. The CSA's Investor Index survey is designed to track key benchmarks on investor knowledge, confidence, risk orientation, behaviours, use of information, and investment fraud. The full index has been conducted previously in 2006, 2009, 2012, and 2017; along with a shorter version of the survey in 2016. Each investor index has also included special topics sections focusing on emerging or important issues for that year. Manitoba Custom Report: Of the six CSA Investor Index Studies, an oversample of Manitoba respondents were surveyed in 2017 and 2020. These results are tracked in this report to provide the MSC with robust data about Manitoba over time and in comparison with national results. Special topics in 2020: In 2017, we added a new module on robo-advisers. With their increasing popularity, the new special topic explored investors' familiarity with robo-advisers, their prevalence, and the perceptions surrounding these services. The 2020 Investor Index includes this special topic again, providing tracking on prevalence and key attitudes related to robo-advisers. One change from 2017 on this topic is around the language used to discuss robo-advisers. While in 2017 we referred to them as "automated advisers", this language has been updated to "online investment advisers". All specific changes in question text are indicated throughout this report where applicable. 6#7Methodology and Approach#8Methodology The 2020 CSA Investor Index was conducted by Innovative Research Group Inc. (INNOVATIVE) using a mixed methodology that combined a random digit dialing telephone survey with an in-depth online survey. • • • . • The online survey consisted of a representative sample of 7,537 Canadians, 18 years or older. This survey was used to develop an in-depth profile of Canadians and their investment behaviour. The online survey was conducted between August 24th and September 8th, 2020 in both French and English from the nationally representative panel managed by Survey Sampling International (SSI) and Ipsos. Online panels are recruited from a wide variety of sources to reflect the age, gender, region and language characteristics of the country as a whole. The survey is administered to randomly selected samples from the panel and weighted to ensure that the overall sample's composition reflects that of the actual target population to provide results that are intended to approximate a probability sample. INNOVATIVE provides each panellist with a unique URL via an email invitation so that only invited panel members are able to complete the survey. Panel members can only complete a particular survey once. The online sample has been weighted by age, gender, and province using 2016 Statistics Canada Census data to reflect the actual demographic composition of the population. To ensure a proportionate representation of Canadians, while not over-estimating the reliability of the sample in any particular region of the country, the sample was weighted down to n=5,000. To ensure a proportionate representation of the province, the Manitoba oversample was weighted down to n=500. In addition to weights derived from Statistics Canada Census data, the online sample was also weighted by the results of an August 2020 national telephone survey of 1,223 Canadians, 18 years of age or older. The telephone survey was used to verify distributions of the 4 primary investor segments from the online survey to ensure a balance of respondents from each group. • This is a representative sample. However, since the online survey was not a random probability based sample, a margin of error cannot be calculated. The Marketing Research and Intelligence Association prohibits statements about margins of sampling error or population estimates with regard to most online panels. Note: Graphs and tables may not always total 100% due to rounding values rather than any error in data. Sums are added before rounding numbers. 8#9Previous Studies with Tracking for Manitoba 2017 CSA Investor Index The 2017 online survey was conducted between August 28th and October 2nd 2017 from nationally representative online panels managed by Survey Sampling International (SSI) and Ipsos. Nationally, 7,271 Canadian adults completed the survey. The online panels were recruited from a wide variety of sources to reflect the age, gender, region and language characteristics of the country as a whole. The online sample has been weighted by age, gender, and province using 2016 Statistics Canada Census data to reflect the actual demographic composition of the population. In addition to weights derived from Statistics Canada Census data, the online sample was also weighted by the results of a August-September 2017 national telephone survey to verify the distributions from the online survey on the key investor segments. In 2017, there was an oversample for Manitoba that was weighted down to n=500. 2012 CSA Investor Index The 2012 online survey was conducted between May 17th and 31st 2012, using INNOVATIVE's national research panel, Canada 20/20™, as well as respondents drawn from nationally representative samples managed by SSI and uThink. Nationally, 6,911 Canadian adults completed the survey. The online panels were recruited from a wide variety of sources to reflect the age, gender, region and language characteristics of the country as a whole. The online sample has been weighted by age, gender and province using 2011 Statistics Canada Census data to reflect the actual demographic composition of the population. While there was no oversampling in Manitoba, we have sufficient sample to include tracking results. 9#10Regional Breakdown The oversample in MB (n=537) has been weighted by age, gender, region, and the distribution of investors to reflect the actual demographic composition of the province. The sample has been weighted down to n=500. 10 10 BC AB SK MB ON QC NB ΡΕΙ NS NL Total Unweighted (n) 822 1108 501 537 2148 1141 531 218 258 258 7,537 Unweighted (%) 10.9% 14.7% 6.6% 7.1% 28.5% 15.1% 7.0% 2.9% 3.4% 3.4% 100% Weighted (n) 677 559 150 175 1914 1170 109 20 135 76 5,000 13.5% 11.2% 3.0% 3.5% 38.3% 23.4% 2.2% .4% 2.7% 1.5% 100% Weighted (%) I+I n=5,000 National Weighted Sample Note: The general population sample consists of 7,537 respondents, who were disproportionately sampled by province in order to provide reliable provincial samples in smaller provinces.#11Regional Map & Frequencies Wollaston Lake Reindeer Lake ge Flin Flon Regina Assiniboine Yorkton D Nuelin Lake Provincial Park Caribou River Provincial Park Lake Winnipego sis Sand Lakes Provina a Park Nunalla Manitoba Winnipeg Churchill Sub-regions Winnipeg South/West Central/ Central/ North North East South/West Total Numaykoos Lake Provincial Park Wapusk Nation a Park Churchill Unweighted (n) 344 112 81 85 117 142 881 Port Nelson Nelson Unweighted (%) 39.0% 12.7% 9.2% 9.6% 13.3% 16.1% 100% MANITOBA Weighted (n) 287 126 87 72 100 115 787 Thompson Gods Weighted (%) 36.5% 16.0% 11.1% 9.1% 12.7% 14.6% 100% Grand Rapids Lake Manitoba Dauphin Brandon Lake Winnipeg Poplar/Nanowin Rivers Park Reserve English Opasquia Provincia Park Severn Winnipeg Sub-regions Alba ONTARIO RLake South leadingley Wineg O Kenora Lake of Headingley Assiniboia Hadenda Charleswood 4 Winnipeg St. Boniface Gran Transcona For sub-regional analysis, Manitoba overll is divided into three regions and Winnipeg is further divided into three additional regions. All regions are based on the first 3 digits of a respondent's postal code (Forward Sortation Area or FSA). 11#12Respondent Profile#13NAK = Respondent Profile: Demographics Gender 48% 51% 9% <1% Prefer to self-describe Age 20% 21% 20% 16% 14% Manitoba Region Winnipeg Region 57% 40% 35% 25% 25% 17% 18-24 25-34 35-44 45-54 55-64 65+ Winnipeg South/ West Central/ North Central/ East North South/ West Household Income Education 27% 22% 18% 24% 9% 9% 17% 16% 16% 6% 7% 11% <1% 4% < $40K $40K-$60K $60K-$80K $80K-$100K $100K-$150K > $150K Public/ Some Elementary High School (Grade 1-8) (Grade 9- 11) Graduated High School Some Completed Some Graduated Vocational/Vocational/ University University Graduate Post Technical/ Technical/ College College Note: 'Prefer not to say' (12%) not shown Note: 'Prefer not to say' (1%) not shown 13#14Investor Profile: 1-in-5 (20%) Manitobans say they do not have any savings or investments set aside for the future Q Do you personally have any savings or investments set aside for the future? This could be either in or outside of an RRSP (Registered Retirement Savings Plan), RRIF (Registered Retirement Income Fund) or TFSA (Tax-Free Savings Account). Check all that apply. [asked of all respondents, multiple mention; national n=5,000; Manitoba n=500] 53% Savings or investments in an RRSP, RRIF or pension plan National 48% 32% 24% Savings or investments in a TFSA Savings or investments outside an RRSP, RRIF, pension plan or TFSA Currently do not have any savings or investments set aside for the future 56% 47% Manitoba Savings or investments in an RRSP, RRIF or pension plan Savings or investments in a TFSA 33% 20% Savings or investments outside an RRSP, RRIF, pension plan or TFSA Currently do not have any savings or investments set aside for the future 14#15Investor Profile: Savers from Manitoba (19%) are less likely than the national average (27%) to own individually held stocks Q Which of the following savings or investment products do you own? [asked only of those who indicated they currently have investments or savings set aside for the future; multiple mention; national n=3,784; Manitoba n=398] Among those who report they currently have savings or investments set aside for the future National Manitoba Term deposits or GICs Mutual funds Individually held stocks Exchange traded funds Corporate, government, or 39% Term deposits or GICs 47% Mutual funds 38% 47% 27% Individually held stocks 19% 16% Exchange traded funds 13% Corporate, government, or 14% 12% municipal bonds municipal bonds 61% of those with 56% of those with Income trusts 9% Income trusts 7% Options 7% savings selected at least 1 securities product savings selected at least 1 securities Options 7% product Principal protected notes 5% Principal protected notes 4% Hedge funds 5% Hedge funds 4% Other 3% Other 3% 15#16Investor Profile: Most Manitoba investors are non-frequent investors (66%) while 1-in-3 (34%) are frequent investors Q In general, how often do you - or your financial adviser on your behalf -- buy or sell investments like stocks, bonds, mutual funds or other investments in the financial markets? [asked only of those who own at least one investment product other than term deposits or GICs; national n=2,314; Manitoba n=225] Among those who own at least one investment product other than term deposits/GICs 7% National Manitoba Non-frequent investors (66%) Non-frequent investors (61%) Frequent investors (39%) 25% Frequent investors (34%) 25% 22% 16% 16% 20% 16% 20% 5% 15% 13% Weekly Monthly Quarterly (every three months) Once or twice a year Less than once a year Don't know Weekly Monthly Quarterly (every three months) Once or twice a year Less than once a year Don't know 16#17Investor Segmentation: A plurality of Manitobans are savers with no investments (35%) followed by non-frequent investors (30%) Based on respondent's answers to questions about the types of savings and investment products they have and how frequently they invest, we grouped respondents into four key investor types for analysis. Manitoba No savings Those who currently do not have 20% any savings or investments set aside for the future National 24% 18% 29% 28% Frequent investor Those who own securities and adjust their portfolio at least once a quarter 15% 30% Non-frequent investors Those who own securities but adjust their investment portfolio no more than once or twice per year 35% Savings, non-investor Those who have savings, but do not own securities such as stocks, bonds, or mutual funds 175 17 Manitoba Regions Winnipeg 22% 35% 27% 16% South/West 17% 32% 35% 15% Central/North 20% Winnipeg Sub-regions 38% 31% 11% Central/North 33% 32% 22% 13% East 19% 40% 25% 16% South/West 18% 32% 32% 18% Throughout this report, "respondents" and "Manitobans" refers to the entire sample. "Investors" refers to the portion of the sample that has money set aside for the future in securities, such as stocks, bonds and/or mutual funds. “Savers” refers to those who have savings or term deposits/GICs, but do not own securities. INNOVATIVE RESEARCH GROUP#18Investor Segmentation: Unlike those over 35, Manitobans under 35 are slightly less likely than other young Canadians to be investing Investor segmentation by gender and age National Manitoba = Overall 24% 29% 28% 18% Overall 20% 35% Gender Men 23% 25% 28% Women 25% Age 18-34 31% 34% 24% Gender 30% 15% Men 23% 27% 29% 20% 28% 13% Women 18% 42% Age 29% 17% 24% 18-34 30% 35-54 24% 28% 28% 19% 35-54 15% 35% 55+ 20% 30% 37% 13% 55+ 18% 34% 30% 10% 35% 19% 16% No Savings Savings, Non-Investor Non-frequent Investor Frequent Investor 33% 17% 36% 12% 18#19Portfolio Size: Nearly half of savers and investors from Manitoba report a portfolio of under $50k (44%) Q Based on your best estimate, in what range would you say your investment portfolio falls? [asked only of those who indicated they currently have investments or savings set aside for the future; national n=3784, Manitoba n=398] Among savers and investors only National ⭑ $50k to less than $500k Under $50k (40%) 15% (39%) 14% 15% 13% 12% $500k+ (9%) 10% 9% 5% 4% 3% Manitoba Under $50k (44%) $50k to less than $500k (37%) 17% 15% 14% 13% 12% $500k+ 10% (6%) 8% 4% 4% 2% 195 Under $10k $25k $50k $100k $250k $500k $1M or Don't Prefer $10k to less to less to less to less to less to less more know not to than than than than than than $25k $50k $100k $250k $500k $1M say Under $10k $25k $50k $100k $250k $500k $1M or Don't Prefer $10k to less to less to less to less to less to less more know not to say than than than than than than $25k $50k $100k $250k $500k $1M#20Portfolio Size: 71% of Manitobans aged 18-34 report portfolio sizes <$50k, compared with 62% among National cohort Portfolio size by gender and age Overall 40% Gender Men 35% Women 45% Age 18-34 35-54 39% 55+ 27% National 62% 44% Manitoba K == HE 39% 8% 4% 9% Overall 44% Gender 37% 6%4% 8% 43% 11% 3% 8% Men 43% 37% 9% 3% 8% 35% 6% 5% 9% Women 45% 38% 3%6% 8% 42% Age 26% 2% 6...7% 18-34 5%4% 8% 35-54 42% 16% 3% 11% 55+ 27% Less than $50k ■$50K to less than $500k 71% $500k+ Don't know Prefer not to say 46% 17% 14% 6% 43% 5% 6% 5% 11% 3% 12% 20 20#21Portfolio Size: Central/North Manitoba investors report a larger proportion of $50k-$500k portfolios than other regions Manitoba Manitoba Regions Winnipeg 47% 36% 5% 4% 7% South/West Central/ North Winnipeg Sub-regions Central/ North East South/West 34% 45% 44% 46% 49% 43% 36% 5% 5% 9% 11% 4% 8% 38% 4% 6% 9% 38% 34% Less than $50k $50K to less than $500k $500k+ Don't know Prefer not to say 6% 4% 6% 6% 3% 8% 21 24#22Investment Knowledge Profile#23Investment Knowledge Index | Summary: Just over half (53%) of Manitobans fall into the 'low' investment knowledge group Financial Literacy Around the World: These seven questions make up the Investment Knowledge Index and allow us to group Canadians by level of knowledge when it comes to investing. National Percentage choosing correct answer 23 Simple Compound Interest Real Compound Interest Diversification Stock and Mutual Fund Risk Mutual Fund Returns Warning Signs of Fraud Interest Rate Effects on Bond Prices Manitoba Percentage choosing correct answer 79% Simple Compound Interest 62% 55% 52% Real Compound Interest Diversification Stock and Mutual Fund Risk 44% 38% 26% 81% 60% 49% 47% Mutual Fund Returns Warning Signs of Fraud Interest Rate Effects on Bond Prices 43% 33% 21% Low knowledge 48% got 3 or less correct Medium knowledge 32% got 4 or 5 correct High knowledge Low knowledge 53% got 3 or less correct Medium knowledge 30% got 4 or 5 20% got 6 or 7 correct correct High knowledge 17% got 6 or 7 correct 14% 14% 15% 17% 14% 15% 16% 11% 15% 14% 17% 8% 12% 7% 7% 5% None Correct 1 2 3 4 5 6 All Correct None Correct 1 2 3 5 6 All Correct#24Investment Knowledge Index: Those from Manitoba (53%) are slightly higher than the national average (48%) on 'low' investment knowledge Investment knowledge index tracking National ⭑ Manitoba == 24 2020 48% 32% 20% 2020 53% 30% 17% 2017 51% 33% 16% 2017 54% 32% 14% 2012 40% 34% 26% 2012 38% 29% 33% Low knowledge Medium knowledge High knowledge Note: 2017 national n=5,000; 2012 national n=5,198; 2017 Manitoba n=500; 2012 Manitoba n=218 ■Low knowledge Medium knowledge High knowledge#2525 25 Investment Knowledge Index: Men, older respondents, and those with higher education score higher on the investment knowledge index Investment knowledge index by gender, age, and education Overall Gender Men 53% 48% Manitoba 30% 17% 32% 20% 28% 14% Women 58% Age 18-34 67% 35-54 54% 55+ 40% Education High school or less College University 71% 52% 43% Low knowledge Medium knowledge 27% 6% 29% 18% 35% 25% 19% 9% 33% 16% 35% 22% High knowledge INNOVATIVE RESEARCH GROUP#26Investment Knowledge Index: 7-in-10 (70%) non-savers have low investment knowledge while it's only 35% for frequent investors Investment knowledge index by investor type and household income Manitoba == Overall Investor type No savings Savings, non-investor Non-frequent investor Frequent investor Household income <$40k $40k-$80k Over $80K Low knowledge 53% 70% 65% 37% 35% 51% 48% 60% Medium knowledge 32% 38% 31% 30% 34% 28% 17% 20% 9% 28% High knowledge 33% 25% 21% 7% 12% 15% 26 26 INNOVATIVE RESEARCH GROUP#27Investment Knowledge Index: respondents in Central/North Winnipeg are more likely than others to score 'Low' investing knowledge (60%) Investment knowledge index by region and Winnipeg sub-region Manitoba == Overall Manitoba Regions Winnipeg South/West Central/North Winnipeg Sub-regions Central/North East South/West Low knowledge 53% 47% 54% 54% 52% 53% 60% 30% 17% 29% 17% 28% 18% 38% 33% 28% 15% 24% 16% Medium knowledge High knowledge 15% 19% 27 27 INNOVATIVE RESEARCH GROUP#2828 Simple Compound Interest: 4-in-5 (81%) correctly answer the question about simple compound interest; on par with the national average (79%) Q Suppose you had $100 in a savings account and the interest rate was 2% per year. After 5 years, how much do you think you would have in the account if you left the money to grow? [asked of all respondents; national n=5,000; Manitoba n=500] Segmentation (Manitoba 2020) Respondents who answered correctly Investor Segments No savings National Correct Answer 79% 8% 9% 4% More than Exactly $102 Less than Don't know $102 $102 69% Manitoba Correct Answer Savings, non-investor 84% Non-frequent investor 84% Frequent investor 84% Manitoba Region Winnipeg 84% South/West 73% 81% Central/North 83% Winnipeg Region Central/North 88% East 76% South/West 88% Age 18-34 77% 35-54 80% 8% 5% 6% 55+ 85% Gender More than Exactly $102 Less than Don't know $102 $102 Men 83% Women 79%#2929 Real Compound Interest: 3-in-5 (60%) correctly answer the question on real compound interest; highest for those over 55 (80%) Q Imagine that the interest rate on your savings account was 1% per year and inflation was 2% per year. After 1 year, how much would you be able to buy with the money in this account? [asked of all respondents; national n=5,000; Manitoba n=500] Segmentation (Manitoba 2020) Respondents who answered correctly Investor Segments No savings 41% National Correct Answer Manitoba Savings, non-investor 54% Non-frequent investor 79% Correct Answer Frequent investor 62% Manitoba Region Winnipeg 59% 62% 60% South/West 57% Central/North 67% Winnipeg Region Central/North 48% East 62% South/West 64% Age 17% 18% 18-34 40% 12% 10% 11% 10% 35-54 58% 55+ 80% Gender More than Exactly the today same Less than Don't know today More than Exactly the today Less than Don't know Men same today Women 69% 52%#30Diversification: Half (49%) know that diversification does not lead to increased risk, slightly below the national results (55%) Are the following statements true or false? Q Segmentation (Manitoba 2020) Respondents who answered correctly Investor Segments When an investor diversifies his or her investments, the risk of losing money increases. [asked of all respondents; national n=5,000; Manitoba n=500] National Correct Answer Manitoba Correct Answer No savings 27% Savings, non-investor 43% Non-frequent investor 62% Frequent investor 68% Manitoba Region Winnipeg 50% 55% South/West 47% 49% Central/North 50% Winnipeg Region Central/North 43% 30% East 51% 28% South/West 53% 21% Age 17% 18-34 38% 35-54 52% 55+ 56% Gender TRUE FALSE Don't know TRUE FALSE Don't know Men 52% Women 47% 30#31Stock and Mutual Fund Risk: Half (47%) correctly disagree that a single³ company's stock provides a safer return than a stock mutual fund Q Are the following statements true or false? Buying a single company's stock usually provides a safer return than a stock mutual fund [asked of all respondents; national n=5,000; Manitoba n=500] Segmentation (Manitoba 2020) Respondents who answered correctly Investor Segments No savings 38% National ⭑ Manitoba Savings, non-investor 36% Non-frequent investor 56% Correct Answer Correct Answer Frequent investor 66% Manitoba Region Winnipeg 47% South/West 48% 52% Central/North 44% 47% 41% Winnipeg Region 36% Central/North 43% East 50% South/West 48% Age 18-34 39% 12% 12% 35-54 45% 55+ 55% Gender TRUE FALSE Don't know TRUE FALSE Don't know Men 50% Women 44%#3232 32 Mutual Funds: 1-in-5 (20%) incorrectly believe that mutual funds pay a guaranteed rate of return; on par with the national average Q Are the following statements true or false? Mutual funds pay a guaranteed rate of return. [asked of all respondents; national n=5,000; Manitoba n=500] National Correct Answer NV Manitoba Correct Answer Segmentation (Manitoba 2020) Respondents who answered correctly Investor Segments No savings 28% Savings, non-investor 30% Non-frequent investor 61% Frequent investor 59% Manitoba Region Winnipeg 41% South/West 46% 44% 43% Central/North 47% 36% 36% Winnipeg Region Central/North 33% East 40% 20% 20% South/West 46% Age 18-34 29% 35-54 44% 55+ 55% Gender TRUE FALSE Don't know TRUE FALSE Don't know Men 49% Women 38%#33Fraud Warning Sign: Only 1-in-3 (33%) correctly answer the question on fraud warning signs while most (42%) say they don't know Are the following statements true or false? Q Investments that offer a higher-than-market rate of return and little to no risk are almost always fraudulent. [asked of all respondents; national n=5,000; Manitoba n=500] Segmentation (Manitoba 2020) Respondents who answered correctly Investor Segments No savings 24% Savings, non-investor 24% National Correct Answer Manitoba Correct Answer Non-frequent investor 42% Frequent investor 51% Manitoba Region Winnipeg 31% 42% South/West 42% 38% 26% 36% 33% 25% Central/North 28% Winnipeg Region Central/North 35% East 28% South/West 32% Age 18-34 28% 35-54 33% 55+ 38% Gender TRUE FALSE Don't know TRUE FALSE Don't know Men 37% Women 30% 33#34Impact of Interest Rates on Bond Prices: A majority (58%) say they 34 don't know when it comes to the impact on interest rates on bond prices Are the following statements true or false? Q Bond prices go up when interest rates go down. [asked of all respondents; national n=5,000; Manitoba n=500] Segmentation (Manitoba 2020) Respondents who answered correctly Investor Segments No savings 19% National ⭑ Savings, non-investor 8% Manitoba Correct Answer HA Non-frequent investor 27% Correct Answer Frequent investor 43% Manitoba Region Winnipeg 22% 58% 55% South/West 22% Central/North 19% Winnipeg Region Central/North 18% East 17% 26% South/West 27% 19% 21% 20% Age 18-34 18% 35-54 20% 55+ 25% Gender TRUE FALSE Don't know TRUE FALSE Don't know Men 24% Women 18%#35Use of Investment Advisers#36Use of Financial Adviser: Adviser use has increased seven points in Manitoba since 2012, now eight points ahead of national results Q Do you have a financial adviser and, if so, how long have you had your current adviser? [asked only of investors; national n=2,314; Manitoba n=225] Among investors only Segmentation (Manitoba 2020) Respondents who currently have an adviser Investor Segments 36 National Currently have adviser Manitoba NV Currently have adviser Non-frequent investor Frequent investor 79% 75% Investment Knowledge 2020 25% 9% 28% 13% 19% 4% 69% 2020 19% 11% 28% 16% 22% 3% 77% Low 80% Medium 80% High 70% Manitoba Region 4% 2017 26% 11% 27% 13% 18% 4% 69% 2017 18% 13% 24% 14% 22% 5% Winnipeg 76% 73% South/West Central/North 82% 72% Age 4% 18-34 2012 25% 8% 22% 18% 21% 3% 70% 2012 23% 6% 20% 19% 26% 3% 70% 35-54 55+ iil 75% 71% 85% I No financial adviser Yes, between 1 and 5 years Yes, more than 10 years Don't know Note: 2017 national n=2,364, MB n=221; 2012 national n=2,873, MB n=125 Yes, less than a year Gender Yes, between 6 and 10 years II usually have a financial adviser, but do not have one now Men 76% Women 78%#37Adviser Segmentation: 35% of Manitobans are advised investors while 1-in-10 (10%) are DIY investors Based on whether or not respondents are investors and if they work with a financial adviser, we segment Canadians into 3 key groups. Investor type No National Non- investor 54% Use of adviser Do not have a financial adviser/ Not currently/ Advised Manitoba Currently have a financial adviser investor 32% DIY investor 14% Don't know savings Savings, non- investor Non- frequent investor Frequent investor Non-investor DIY Advised investor investor Non- investor 55% Advised investor Advised investor 35% Non-investor Those who either don't have savings/investments DIY investor set aside for the future or those who have savings, but do not own securities DIY investor Those who are non-frequent and frequent investors and are currently working with a financial adviser 10% Those who are non-frequent and frequent investors that do not have a financial adviser 37 37#38Comfort with Adviser: Nearly all (95%) are either very or somewhat comfortable with their adviser Q How comfortable do you feel bringing forth concerns and questions when speaking with your financial adviser? [asked only of investors who currently do or usually have a financial adviser; national n=1,698; Manitoba n=180] Among investors who currently or usually have an adviser Segmentation (Manitoba 2020) Respondents who say "very comfortable" Investor Segments Non-frequent investor 53% National ⭑ Manitoba Frequent investor 61% Investment Knowledge 2020 53% 39% 6% 2020 56% 39% 4% Low 49% Medium 57% High 64% 2017 52% 40% 7% 2017 56% 36% 6% Age 18-34 48% 35-54 50% 55+ 65% 2012 62% 31% 5% 2012 67% 27% 5% Gender Men 60% Very comfortable Not at all comfortable Note: 2017 national n=1,717, MB n=171; 2012 national n=2,087, MB n=92 Somewhat comfortable Don't know I Not very comfortable Women 50% 38#39Adviser Background Check: 1-in-4 (23%) in Manitoba have checked the background of their adviser, 10 points below national share (33%) Q Have you ever checked into the background of your financial adviser in any way? [asked only of investors who currently do or usually have a financial adviser; national n=1,698; Manitoba n=180] Segmentation (Manitoba 2020) Respondents who say "yes" 39 Among investors who currently or usually have an adviser Investor Segments Non-frequent investor 16% National ✶ Manitoba = Frequent investor 37% Investment Knowledge 2020 33% 64% 3% 2020 23% 75% 2% Low 19% Medium 28% High 20% 2017 31% 66% 2% 2017 27% 68% 4% Age 18-34 35% 35-54 17% 55+ 22% 2012 41% 57% 2% 2012 29% 70% 2% Gender Men 23% Women 21% Yes No Don't know Note: 2017 national n=1,717, MB n=171; 2012 national n=2,087, MB n=92#40Adviser Background Check | Sources: As with national results, top 40 source of background check is references and reviews from others (26%) 40 What sources did you use to check the background of your financial adviser? Q [asked only of investors who currently do or usually have a financial adviser and have checked into their background; national n=565; Manitoba n=41] Among investors who currently or usually have an adviser and have checked into their background Multiple selections allowed National Manitoba References, reviews, and recommendations from others 19% Information from the bank 14% Looked online - general 13% References, reviews, and recommendations from others Through friends, family, coworkers, or close adviser Education and credentials 26% 19% 9% Through friends, family, coworkers, or close adviser Information from the company (website, coworkers, etc.) 13% 12% Information from the company (website, coworkers, etc.) Google 7% 7% Google 9% Education and credentials 8% LinkedIn 4% Information from the bank Background check, criminal record Looked online - general 7% 7% 6% Provincial or federal securities regulator 3% Inquired with other financial adviser(s)/accountant/lawyer 5% Long-term relationship with adviser Background check, criminal record 3% 2% In 2017, 4% On social media - general Long-term relationship with adviser 5% 3% On social media - general 2% said securities Word of mouth 2% Inquired with other financial adviser(s)/accountant/lawyer 2% regulator Asked the adviser directly 2% In 2017, 1% Word of mouth 1% LinkedIn 0% said securities On Facebook 1% Provincial or federal securities regulator 0% regulator Asked the adviser directly 1% On Facebook 0% Other 9% Other 9% Don't know 3% Don't know 0% Note: 'None' (National: 1%; MB: 0%) and 'Refused' (National: 2%; MB: 3%) not shown.#41Adviser Compensation Methods: More than a third of Manitobans with an adviser pay them by salary (36%), on par with national share Is your financial adviser being paid by any of the following methods? Q [asked only of investors who currently do or usually have a financial adviser; national n=1,698, MB n=180; multiple selections allowed] Among investors who currently or usually have an adviser 42% 38% National ⭑ 36% 32% 32% 30% 28% 38% 36% 34% Manitoba 35% 31% 30% 26% 27% 25% 20% .20% 19% 19% 15% 9% 11% 13% 3% <1%<1% Salary (the cost of their advice is built into the products you Flat fee or % based on the assets in your account Commission based on the products they sell Flat fee based on an hourly rate Other Don't know buy) Salary (the cost of their advice is built into the products you buy) 9% 9% HA NV 24% 41 22% 20% 2% 1% <1%<1% Other Don't know Flat fee or % based on the assets in your account Commission based on the products they sell Flat fee based on an hourly rate Note: 2017 national n=1,717, MB n=171; 2012 national n=2,087, MB n=92; ■2012 2017 2020 'none of the above' not shown INNOVATIVE RESEARCH GROUP#42Adviser Compensation: 4-in-10 (42%) agree they know exactly how much they've paid their adviser; highest for frequent investors (64%) Do you agree or disagree with the following statement: Q I know exactly how much I have paid my financial adviser in the past 12 months. [asked only of investors who currently do or usually have a financial adviser; national n=1,698; Manitoba n=180] Segmentation (Manitoba 2020) Respondents who say "agree" Investor Segments 22 42 Among investors who currently or usually have an adviser Non-frequent investor 32% Frequent investor 64% National Manitoba = Investment Knowledge Low 37% 2020 23% 28% 16% 17% 16% 2020 14% 28% 16% 19% 23% Medium 52% High 34% 2017 23% 27% 16% 17% 18% Age 2017 19% 27% 14% 23% 17% 18-34 48% 35-54 38% 55+ 2012 23% 21% 13% 19% 24% 2012 9% 20% 19% 22% 30% 43% Gender Men 46% Strongly agree ■Strongly disagree Note: 2017 national n=1,717, MB n=171; 2012 national n=2,087, MB n=92 Somewhat agree Don't know Somewhat disagree Women 37%#43Financial Plan: 1-in-4 (24%) Manitobans have a formal financial plan that includes clear investment goals; similar to national average Q Do you have a formal, written financial plan that includes clear investment goals? [asked of all respondents; n=5,000; Manitoba n=500] Among all respondents National Manitoba == NV HA 2020 27% 66% 7% 2020 24% 66% 9% Segmentation (Manitoba 2020) Respondents who say "yes" Investor Segments No savings 6% Savings, non-investor 11% Non-frequent investor 39% Frequent investor 49% Investment Knowledge Low 18% Medium 31% High 31% Advised Segments Non-investor 9% DIY investor Advised investor 9% 52% Manitoba Region 2017 27% 67% 6% 2017 26% 66% 8% Winnipeg South/West Central/North E 26% 23% 20% Winnipeg Region Central/North 22% East 26% South/West 29% 2012 31% 62% 7% 2012 25% 68% 7% Age 18-34 22% 35-54 22% 55+ 28% Gender Yes No Don't know Note: 2017 national n=5,000, MB n=500; 2012 n=5,198, MB n=218 Men 22% Women 26% 43 33#44Financial Plan Review: Nearly 3-in-4 (72%) Manitobans with a financial plan have reviewed it recently, an eight point drop from 2017 Have you reviewed your financial plan in the past 12 months? Q [asked only of those who have a written financial plan; n=1,343, Manitoba n=121] Among those with a written financial plan National Manitoba 2020 74% 25% 2020 72% УИ NV HA 27% 2017 76% 23% 2017 80% 19% 2012 78% 22% 2012 71% 29% Note: 2017 national n=1,360, MB n=129; 2012 national n=1,608, MB n=54 Yes No Don't know INNOVATIVE RESEARCH GROUP 44#45Risk Tolerance & Confidence#4646 46 Investing Confidence: Half (49%) of Manitobans feel confident in making investment decisions; highest for frequent investors (84%) Q How confident are you when it comes to making investment decisions? [asked of all respondents; national n=5,000; Manitoba n=500] Segmentation (Manitoba 2020) Respondents who say "confident" National Manitoba УИ NV Investor Segments No savings 30% Savings, non-investor 37% Non-frequent investor 57% Frequent investor 84% Investment Knowledge 2020 12% 43% 23% 15% 7% 2020 9% 40% 26% 18% 7% Low 38% Medium 53% High 75% Advised Segments Non-investor 34% DIY investor 60% Advised investor 68% 2017 14% 43% 25% 13% 5% 2017 11% 39% 30% 14% 7% Manitoba Region Winnipeg 47% South/West 50% Central/North 53% Winnipeg Region Central/North 50% East 40% 2012 13% 44% 23% 13% 7% 2012 7% 46% 24% 16% 6% South/West 51% Age 18-34 42% 35-54 47% 55+ 56% ■ Very confident Not at all confident Note: 2017 national n=5,000, MB n=500; 2012 national n=5,198, MB n=218 Somewhat confident Don't know Not very confident Gender Men 60% Women 38%#47Risk Orientation: Investors (35%) are more likely to describe their investment style as aggressive compared to all Manitobans (22%) Q Which of the following best describes your investment style? [asked of all respondents; n=500] Manitoba N Segmentation (Manitoba 2020, all Aggressive All respondents (22%) Investors only (35%) Conservative All respondents (64%) Investors only (63%) 46% 5% 3% 19% 39% 30% 47 17 respondents) Those who say "aggressive" Investor Segments No savings 13% Savings, non-investor 11% Non-frequent investor 25% Frequent investor 57% Investment Knowledge Low 17% Medium 24% High 36% Advised Segments Non-investor 12% DIY investor 31% Advised investor 37% Manitoba Region Winnipeg 23% South/West 19% Central/North 24% Winnipeg Region Central/North 24% 2% East 23% South/West 23% Age 18-34 26% 35-54 27% 55+ 14% Gender Men 30% Women 14% 25% 17% 14% I consider myself very I consider myself fairly aggressive; I am willing to aggressive; I am willing to take a fair amount of risk take some risk to achieve to achieve above-average above-average returns returns I consider myself fairly conservative; I will take only a little bit of risk All respondents I consider myself very conservative; I only purchase the least risky investments Investors only Don't know#48Risk Orientation: A majority (63%) of Manitoba investors say they take a conservative approach to risk; on par with national average (60%) Which of the following best describes your investment style? Q [asked of all respondents but showing among investors only; national n=2,314; Manitoba n=225] Among investors only National 2020 6% 32% 2017 5% 30% 2012 5% Manitoba 2020 5% 2017 7% K 31% 30% 29% 44% 46% 45% 46% 43% 48 Aggressive Conservative 14% 2% 37% 60% 18% 2% 35% 63% 16% 2% 36% 61% 17% 2% 35% 63% 18% 3% 36% 60% 2012 2% 36% 47% 14% 2% 38% 60% I consider myself very aggressive; I am willing to take a fair amount of risk to achieve above-average returns I consider myself fairly aggressive; I am willing to take some risk to achieve above-average returns I consider myself fairly conservative; I will take only a little bit of risk I consider myself very conservative; I only purchase the least risky investments Don't know Note: 2017 national n=2,364, MB n=221; 2012 national n=2,873, MB n=125 INNOVATIVE RESEARCH GROUP#4949 49 Preferred Portfolio: A plurality (31%) of Manitobans would choose Portfolio B (+20%/-7%), on par with national numbers (31%) Q A portfolio is a basket of different investments. The returns earned by a specific portfolio depend on the mix of investments that make up the portfolio. The following graph shows the probable range of returns of four hypothetical portfolios over a one-year period. Which of these portfolios would you prefer to invest in? [asked of all respondents; national =5,000, Manitoba n=500] National 2020 28% 2017 24% 34% 40% 37% 28% 30% 20% 20% 13% Return (%) 10% 0% -2% -10% -7% 31% 14% 7% 19% -13% -20% -20% -30% Portfolio A Portfolio B Portfolio C Portfolio D 18% 8% 16% 2012 23% 33% 18% 10% 17% 2020 Manitoba 25% 2017 23% 31% 29% 16% 5% 22% 18% 10% 2012 22% 31% 23% Portfolio A: +13%/-2% Portfolio D: +37%/-20% Portfolio B: +20%/-7% Don't know 7% 21% Portfolio C: +28%/-13% 18% Note: 2017 national n=5,000, MB n=500; 2012 national n=5,198, MB n=218; Prior to 2020, second sentence of the question said "The following graph shows the probably range of returns (from best to worst) of four hypothetical portfolios over a one-year period." INNOVATIVE RESEARCH GROUP#50Preferred Portfolio: Among investors, 4-in-10 (39%) would choose Portfolio B, slightly more than in 2017 or 2012 (34%) Q A portfolio is a basket of different investments. The returns earned by a specific portfolio depend on the mix of investments that make up the portfolio. The following graph shows the probable range of returns of four hypothetical portfolios over a one-year period. Which of these portfolios would you prefer to invest in? [asked of all respondents but showing among investors only; national n=2,314; Manitoba n=225] National 2020 24% 42% 40% 37% 28% 30% 20% 20% 13% Among investors only Return (%) 10% 0% -2% -10% -7% -13% -20% 20% 7% 7% -20% -30% Portfolio A Portfolio B Portfolio C Portfolio D 2017 21% 40% 23% 7% 9% 2012 21% 39% 23% 9% 8% 2020 Manitoba 23% 2017 18% 2012 26% 34% 39% 34% 24% 23% 29% 7% 8% 10% 14% 4% 7% Portfolio A: +13%/-2% Portfolio D: +37%/-20% Portfolio B: +20%/-7% Don't know Portfolio C: +28%/-13% Note: 2017 national n=2,364, MB n=221; 2012 national n=2.873, MB n=125; Prior to 2020, second sentence of the question said "The following graph shows the probably range of returns (from best to worst) of four hypothetical portfolios over a one-year period." INNOVATIVE RESEARCH GROUP 50 50#51Risk-Tolerance Review: 4-in-10 (43%) Manitoba investors have reviewed risks with their adviser in the last year, steady since 2017 Q When was the last time you or your financial adviser thoroughly reviewed the level of risk you're willing to take with your investments? [asked only of investors; n=2,314; Manitoba n=225] Among investors only Segmentation (Manitoba 2020) Respondents who say "within the last year" Investor Segments National Manitoba Non-frequent investor 36% Frequent investor 58% Investment Knowledge 2020 48% 23% 10%5% 11% 2020 43% 25% 14% 4% 9% Low 36% Medium 47% High 48% Advised Segments 2017 46% 22% 10% 6% 13% 2017 43% 25% 11%5%10% DIY investor Advised investor 21% 50% Manitoba Region Winnipeg 45% South/West 51% Central/North 25% 2012 56% 20% 8%4%8% 2012 51% 21% 9% 7% 8% Age 18-34 36% 35-54 43% Within the last year Within the past five years II have not reviewed the risk I am willing to take Note: 2017 national n=2,364, MB n=221; 2012 national n=2,873, MB n=125 Within the past two years More than five years ago Don't know 55+ 49% Gender Men 44% Women 43% 51#52Understanding of Risk: Most (85%) Manitoba investors agree that they³ understand how risky their investments are Please indicate if you agree or disagree with the following statement: 52 Q I understand how risky each of my investments are today. [asked only of investors; national n=2,314, Manitoba n=225] Among investors only Segmentation (Manitoba 2020) Respondents who say "strongly agree" Investor Segments Non-frequent investor 20% National ⭑ Manitoba = NV Frequent investor 33% Investment Knowledge 4% 2020 31% 54% 9% 3% 2020 24% 60% 9% Low 24% Medium 20% High 30% Advised Segments DIY investor 28% Advised investor 23% 2017 30% 54% 10% 3% 2017 24% 54% 12%4%% Manitoba Region 12% 6% Winnipeg 24% South/West 26% Central/North 25% Age 18-34 31% 2012 31% 54% 9%2% 2012 25% 56% 12%4% 35-54 20% 55+ 25% Gender Men 27% Strongly agree Note: 2017 national n=2,364, MB n=221; 2012 national n=2,873, MB n=125 Somewhat agree Somewhat disagree Strongly disagree Don't know Women 20%#53Investment Fraud in Canada This section was preceded by an explanation of the topic: So far we have focused on investments. Now we would like to turn to fraud. As you know, not every investment makes money. Some investments lose money even if everyone means well and is entirely honest in their dealings. However, there are some cases where people are trying to steal your money and mislead you and they propose an investment based on false information. So, in this case, we mean a fraud occurs when someone intentionally gives you false information to get money from you.#54Where to Report Fraud: Only 6% of Manitobans say they would report fraud to securities commission, slightly below national average (10%) Q Where would you go to report a suspected investment fraud? [asked of all respondents; national n=5,000, Manitoba n=5000, multiple responses allowed; open-ended] Multiple selections allowed % who mention National 8% 9% 10% Manitoba "Securities 8% 6% 6% commission/ 2012 2017 2020 regulator" 54 National The police 35% The bank 18% Securities commission/regulator 10% The provincial/federal government - general 4% The Canada Revenue Agency 3% Financial adviser or accountant 3% The company 2% The Canada Anti-Fraud Agency The Better Business Bureau 1% 1% The SEC 1% Would Google it/website - general 1% A lawyer/courts 1% Manitoba The police 42% The bank 16% Securities commission/regulator 6% The provincial/federal government - general 5% The Canada Revenue Agency The Canada Anti-Fraud Agency 2% 2% Financial adviser or accountant 2% The company 1% The Better Business Bureau 1% The SEC 1% The CDIC/Insurance - general 11% The CDIC/Insurance - general A lawyer/courts Would Google it/website - general 1% 1% <1% Other Don't know None/Would not report 1% 5% Other 3% 20% Don't know 20% None/Would not report 1% Note: Refused (National 3%, MB 1%) not shown#55Fraud Attempts: 1-in-5 (21%) Manitobans say they've been approached with a fraudulent investment with no change since 2012 Q Do you think anyone has ever approached you with a possible fraudulent investment? [asked of all respondents; national n=5,000, Manitoba n=500] Segmentation (Manitoba 2020) Those who say “yes” Investor Segments No savings 23% National Manitoba Savings, non-investor 17% Non-frequent investor 21% Frequent investor 29% Investment Knowledge 2020 18% 68% 14% 2020 21% 64% 15% Low 18% Medium 23% High 27% Advised Segments Non-investor 19% DIY investor 16% Advised investor 26% 2017 18% 71% 11% 2017 20% 67% 13% Manitoba Region Winnipeg South/West Central/North E 21% 23% 18% Winnipeg Region Central/North 17% East 20% 2012 27% 58% 14% 2012 22% 56% 22% South/West 25% Age 18-34 20% 35-54 21% 55+ 23% Yes No Don't know Gender Men 24% Women 18% Note: 2017 national n=5,000, MB n=500; 2012 national n=5,198, MB n=218 55#56Method of Approach: Among Manitobans approached by fraud, 1-in-3 (34%) say they were reached by telephone, up 12 points since 2012 Q How were you introduced to the most recent investment fraud you encountered? [asked only of those who believe they have been approached with a fraudulent investment; national n=909, Manitoba n=106] National From email Manitoba 36% 44% 49% Stranger (telephone) Stranger (telephone) Introduced through friends, neighbour, co-worker, or 15% 12% family 10% 8% Over internet (other than email/social media) 10% 7% 6% On social media Recommended by financial adviser In the mail 1% Stranger (front door) 3% Other 1% 5% Don't know/None 2020 2017 25% 1% 2012 NV HA From email Introduced through friends, neighbour, co-worker, or family 9% 1% 9% 8% On social media 34% 27% 22% 31% 42% 45% Over internet (other than email/social media) 7%% 8% 1% 5% In the mail 3% Recommended by financial adviser 1% 2% 7% 1% Stranger (front door) 4% 1% Other *3% 10% 3% Don't know/None .9% 5% ■2020 2017 2012 56 Note: 2017 national n=900, NB n=102; 2012 national n=1,411, NB n=48; Before 2020, "From email" was "From email spam", "Introduced to fraud over the internet (other than email or social media)" was "Introduced to fraud over the internet (other than email)"; "In the mail" and "On social media" were added in 2020. Tracking for "In the mail" comes from open-ended responses which were coded into the new response category.; 'A website selling binary options' was provided as an option in 2017 only (3%, not shown) INNOVATIVE RESEARCH GROUP#57Level of Trust: Nearly 1-in-5 (18%) say they had a strong level of trust with the person that more recently approached when with a fraud Q How would you describe the level of trust you developed with the person or persons who most recently approached you with a fraudulent investment opportunity? [asked only of those who believe they have been approached with a fraudulent investment; national n=909, Manitoba n=106] 2020 5% 11% 11% National 61% 3% 9% 2020 2% 16% 3% Manitoba 65% 5% 9% 2017 6% 12% 10% 61% 2% 8% 2017 5% 12% 12% 63% 3%6% 1% 2012 4% 7% 7% 67% 3% 12% 2012 9% 3% 71% 2% 14% Very strong Not at all strong Note: 2017 national n=900, MB n=102; 2012 national n=1,411, MB n=48 Somewhat strong Don't know I Not very strong Not applicable INNOVATIVE RESEARCH GROUP 57 40#58Reporting Fraud: 3-in-10 (30%) Manitobans approached by a fraud reported the fraud, slightly higher than the national results (26%) Q Once you realized this most recent investment opportunity was fraudulent, did you report it to the authorities? [asked only of those who believe they have been approached with a fraudulent investment; national n=909, MB n=106] 58 2020 26% National 69% 6% 2020 30% Manitoba = NV 68% 2% 2017 33% 63% 4% 2017 30% 63% 7% 2012 29% 67% 4% 2012 36% 62% 1% Yes No Don't know Note: 2017 national n=900, MB n=102; 2012 national n=1,411, MB n=48 INNOVATIVE RESEARCH GROUP#59Reporting Fraud: In a small sub-sample, a plurality reported fraud to police (38%); only 4% say they reported to their provincial regulator Q Where did you go to report the suspected investment fraud? [asked only of those who believe they have been approached with a fraudulent investment AND reported it to the authorities; open-ended; national n=235, MB n=32] National ✶ Police/RCMP 47% 44% Bank 15% 14% Provincial regulatory agency 3% for securities 4% 5% Online - general 3% 2020 2% The Company 3% 2017 2% Canada Anti-fraud 2% 0% Internet provider 1% Other 20% 19% 6% Don't know/None 4% Note: 2017 national n=300, MB n=31 Manitoba 38% The police/RCMP 31% 34% Bank 17% 5% The CRA Provincial Securities Regulator 4% 3% 4% Government - general 2020 2% Website/Online - general 7% 2% 2017 Canada Anti-Fraud 2% Better Business Bureau 6% The Company 10% 5% Other 14% None/Don't know 4% 6% INNOVATIVE RESEARCH GROUP 59 59#6060 60 Reason for Not Reporting Fraud: As with national results, top reason for not reporting fraud is that they didn't fall for it/clearly a scam (28%) Q Why didn't you report it to the authorities? [asked only of those who believe they have been approached with a fraudulent investment AND did not report it to the authorities; open-ended; national n=624, Manitoba n=72] National Didn't fall for it/clearly scam Manitoba = 27% Didn't fall for it/clearly scam 28% Too much fraud (spam) to report it 11% Waste of time/too much bother 11% all Was not positive it was fraud Believed nothing would be done 8% Believed nothing would be done about it 9% 8% about it Didn't think about reporting it/did not see the need 9% Knew it was already reported by others Knew it was already reported by 8% 8% others Waste of time/too much bother 7% Was not positive it was fraud 6% Didn't think about reporting it/did not see the need 5% Did not know who to contact 5% Did not know who to contact Too much fraud (spam) to report it all 6% 4% Not enough information/hard to Not enough information/hard to 4% 2% prove prove Other 11% Other 11% Don't know 5% Don't know 5% Note: 'Refused' (National <1%, MB<1%) not shown INNOVATIVE RESEARCH GROUP#61Fraud Incidence: 3% of Manitobans report investing money in a fraudulent investment; on par with national results (4%) Q Have you ever invested money in what turned out to be a fraudulent investment? [asked only of those who believe they have been approached with a fraudulent investment; national n=909, Manitoba n=106; percentages calculated based on the full sample] 2020 4% 14% 1% National 82% 2020 3% 18% Manitoba 79% 2017 4% 14% 1% 82% 2017 5% 15% 80% 2012 5% 21% 1% 73% 2012 4% 16% Yes No Don't know ■Never approached (not asked) Note: 2017 national n=900, MB n=102; 2012 national n=1,411, MB n=48 78% 61 INNOVATIVE RESEARCH GROUP#62Fraud Amount: Of the 14 respondents who invested in a fraud, 8 invested between $1,000 and $10,000 Q Based on your best estimate, in what range would you say the amount you invested in this most recent investment fraud falls? [asked of those who have invested money in what turned out to be a fraudulent investment; Manitoba n=14] 1 5 3 2 1 1 62 62 1 0 Less than $1,000 Between $1,000 and $5,000 Between $5,000 and $10,000 Between $10,000 and $25,000 Between $25,000 and $50,000 Between $50,000 and $100,000 More than $100,000 Don't know INNOVATIVE RESEARCH GROUP#63Fraud Techniques: 10 of the 14 respondents who invested in a fraud say the fraudster seemed official/legitimate Q People who commit investment fraud can use many techniques to gain your trust. Thinking about this most recent investment fraud, which of the following were true. Select all that apply. [asked of those who have invested money in what turned out to be a fraudulent investment; multiple mention; n=14] They seemed official/legitimate They provided supporting documents They promised high returns with no risk 4 Other people I know had made money from the opportunity 4 I had to make a decision quickly 3 The person was someone I knew 3 They told me they had put their own money in the investment as well 2 They already knew personal details about me 2 Don't know 1 7 10 10 63 663 INNOVATIVE RESEARCH GROUP#64Fraud Attitudes and Perceptions#65Just as Likely to be a Victim: Half (51%) of Manitobans feel they are just as likely to be a victim as anyone else, down eight points since 2012 Q For each of these statements please indicate if you agree or disagree: I am just as likely to be a victim of investment fraud as anyone else. [asked of all respondents; national n=5,000, Manitoba n=500] Segmentation (Manitoba 2020) Those who say "strongly/somewhat agree" Investor Segments No savings 65 44% National Manitoba NV Savings, non-investor Non-frequent investor 54% 52% Frequent investor 51% Investment Knowledge Low 50% 2020 21% 34% 23% 12% 10% 2020 17% 34% 26% 13% 10% Medium 57% High 44% Advised Segments Non-investor 50% DIY investor 42% Advised investor 54% Manitoba Region 2017 26% 35% 22% 11% 7% 2017 21% 34% 24% 14% 8% Winnipeg 52% South/West 52% Central/North 45% Winnipeg Region Central/North 51% East 52% 2012 23% 33% 22% 15% 6% 2012 25% 34% 23% 11% 7% South/West 52% Age 18-34 54% 35-54 54% Strongly agree I Strongly disagree Note: 2017 national n=5,000, MB n=500; 2012 national n=5,198, MB n=218 Somewhat agree Don't know Somewhat disagree 55+ 45% Gender Men 47% Women 55%#66More Trouble Than it's Worth: Nearly 1-in-5 (18%) Manitobans think reporting fraud is too much trouble, on par with national results Q For each of these statements please indicate if you agree or disagree: Reporting a fraudulent investment is more trouble than it's worth. [asked of all respondents; national n=5,000, MB n=500] Segmentation (Manitoba 2020) Those who say "strongly/somewhat agree" Investor Segments No savings 16% Savings, non-investor 14% National Manitoba УИ NV Non-frequent investor 19% Frequent investor 27% Investment Knowledge 2020 5% 14% 21% 45% 14% 2020 4% 14% 24% 42% 16% Low 18% Medium 19% High Advised Segments Non-investor 15% DIY investor 24% Advised investor 21% 4% 2017 4% 14% 21% 51% 11% 2017 13% 21% 46% 16% Manitoba Region Winnipeg South/West Central/North E 18% 20% 15% Winnipeg Region Central/North 19% East 16% 2012 6% 17% 18% 51% 9% 2012 9% 20% 13% 49% 10% South/West 18% Age 18-34 18% 35-54 23% 55+ 12% ■Strongly agree ■Strongly disagree Somewhat agree Don't know Somewhat disagree Gender Men 23% Women 13% Note: 2017 national n=5,000, MB n=500; 2012 national n=5,198, MB n=218 99 66#67Can Usually Trust: A third (34%) of Manitobans agree you can trust an investment if a friend has invested, up 13 points since tracking began Q For each of these statements please indicate if you agree or disagree: You can usually trust someone who is promoting an investment if you have a friend who has already invested with them [asked of all respondents; national n=5,000, MB n=500] Segmentation (Manitoba 2020) Those who say "strongly/somewhat agree" Investor Segments No savings Savings, non-investor Non-frequent investor 27% 34% National ⭑ 38% Manitoba Frequent investor 34% Investment Knowledge Low 38% 2020 4% 21% 33% 29% 13% 2020 4% 30% 30% 25% 12% Medium 35% High 16% Advised Segments Non-investor 31% DIY investor 22% Advised investor 41% Manitoba Region 2017 4% 24% 33% 29% 10% 2017 3% 25% 34% 27% 11% Winnipeg 32% South/West 38% Central/North 31% Winnipeg Region Central/North 34% East 29% 2012 4% 20% 33% 37% 7% 2012 3%17% 38% 32% 10% South/West 35% Age 18-34 39% 35-54 40% Strongly agree ■Strongly disagree Somewhat agree Don't know Somewhat disagree 55+ 22% Gender Men 38% Women 29% Note: 2017 national n=5,000, MB n=500; 2012 national n=5,198, MB n=218 67 20#68Elder Fraud: 1-in-4 (24%) Manitobans know a senior who has been a victim of at least one type of financial abuse Q This next question is about investment fraud and other financial abuse targeting seniors. Do you know any senior (including yourself) that has been a victim of any of the following abuses? Please select all that apply. [asked of all respondents; multiple mention; national n=5,000; Manitoba n=500] None 54% Type of Abuse (among those who know a senior who has been a victim of an abuse) Prefer not to say, 3% Know a senior who has been a victim of an abuse 29% Misuse of debit cards, credit cards, or online banking National None 58% Manitoba Prefer not to say, 3% by family members/others with access Pressured to give monetary gifts involuntarily Family loan not repaid 38% 38% 37% 36% 33% 42% Don't know 14% Pressured to sign a document that they didn't understand 20% 27% 20% Misuse of a power of attorney for financial gain 18% Know a senior who has been a victim of an abuse 24% Romantic relationship with the intention of financial 19% benefit 22% 16% Misuse of funds in a join account ■Manitoba 16% 12% ■ National Cashing in investments without permission 12% 10% Don't know 15% Pressured to take out mortgage on house 10% 68 INNOVATIVE RESEARCH GROUP#69Elder Fraud: Frequent investors (36%) and young investors (33%) are the most likely to know a senior who has been a victim of abuse This next question is about investment fraud and other financial abuse targeting seniors. QDo you know any senior (including yourself) that has been a victim of any of the following abuses? Please select all that apply. 69 69 by investor type, age, and gender [asked of all respondents; multiple mention; n=500] Manitoba Overall 24% 58% 15% 3% Investor type No savings 29% Savings, non-investor 20% Non-frequent investor 19% Frequent investor 36% 44% 62% 68% 50% 21% 6% 16% 2% 12% 1% 11% 3% Age 18 to 34 33% 49% 13% 4% 35 to 54 17% 60% 21% 2% 55+ 24% 63% 10% 3% Gender Men 23% Women 25% 57% 59% 17% 2% 13% 4% Know a senior who has been victim to at least one abuse None Don't know Prefer not to say#70Elder Fraud: Lower income Manitobans (32%) are most likely to know a senior who has been victim of at least one type of financial abuse 70 Q Do you know any senior (including yourself) that has been a victim of any of the following abuses? Please select all that apply. by region and household income [asked of all respondents; multiple mention; n=500] Manitoba Overall 24% 58% 15% 3% Manitoba Region Winnipeg 23% South/West 24% Central/North 28% 56% 60% 63% 17% 4% 15% 1% 7% 2% Winnipeg Region Central/North 28% 55% East 18% 56% South/West 25% 56% 13% 4% 20% 5% 17% 3% Household income <$40k $40k-$80k Over $80K 32% 23% 20% 48% 66% 63% 18% 2% 11% 1% 14% 3% Know a senior who has been victim to at least one abuse None Don't know Prefer not to say INNOVATIVE RESEARCH GROUP#71Looking for Fraud Info: The top resources for information on protecting from fraud are online (34%) and in the news (30%) Q In the past, where have you most often looked for information about protecting yourself from investment fraud? Please select all that apply. [asked of all respondents; multiple mention; national n=5,000, Manitoba n=500] 71 National Manitoba Online Online News My financial adviser 36% 34% 33% News 30% 24% My friends/family members 25% My friends/family members 24% My financial adviser 23% Social media 11% Social Media 12% Educational brochures/books 11% Educational brochures/books 9% In-person meetings/seminars 6% In-person meetings/seminars 7% Bank/financial institution 1% Bank/Financial Institution 1% Other 1% Other 1% Don't know 8% Don't know 9% None of these 23% None of these 24%#72Looking for Fraud Info: High knowledge, those 18-34, and frequent investors are most likely to look for fraud information online Q In the past, where have you most often looked for information about protecting yourself from investment fraud? Please select all that apply. by key segments [asked of all respondents; multiple mention; n=500] Manitoba Investment Knowledge Adviser Segments 72 22 Investor Segments Age Gender % who selected No savings Savings, Non- non- frequent investor investor Frequent investor Low Medium High Non- investor DIY Advised 18-34 35-54 55+ Men Women Online 35% 30% 34% 43% 31% 35% 42% 32% 37% 37% 46% 33% 26% 36% 33% News 23% 25% 38% 36% 21% 42% 36% 24% 39% 36% 25% 25% 40% 29% 30% Adviser 12% 17% 33% 34% 17% 29% 31% 15% 5% 41% 19% 20% 30% 22% 24% Friends/family 20% 26% 26% 28% 22% 28% 27% 24% 15% 30% 30% 25% 20% 24% 25% Social media 12% 12% 9% 16% 13% 10% 10% 12% 14% 10% 16% 11% 8% 9% 13% Books/brochures 5% 6% 14% 11% 5% 12% 16% 5% 13% 13% 6% 8% 13% 8% 9% Meetings/ 5% 2% 11% 13% 5% 8% 10% 3% 8% 12% 7% seminars 6 69 6% 6 8% 8% 6% Bank 1% 1% 1% 1% 2% 1% 1% 2% 0% 1%#73Fraud info by region: residents of Central/North Manitoba are much less likely to look for information about fraud from social media In the past, where have you most often looked for information about protecting yourself from investment fraud? Please select all that apply. by key segments Q [asked of all respondents; multiple mention; n=500] Manitoba Manitoba Regions Winnipeg Sub-regions % who selected Winnipeg South/West Central/North Central/North East South/West Online 37% 33% 27% 36% 34% 42% News 32% 28% 26% 36% 30% 31% Adviser 24% 24% 21% 20% 22% 27% Friends/family 26% 20% 27% 29% 22% 29% Social media 15% 10% 3% 21% 13% 13% Books/brochures 8% 13% 6% 5% 10% 9% Meetings/ 7% 5% 10% 5% 6% 8% seminars Bank 1% 0% 0% 0% 0% 2%#74Optimism in the Economy#75Investment Target Optimism: A majority (54%) of Manitoba investors are optimistic about their investments over the next five years Q Overall, how optimistic or pessimistic are you that you will be able to achieve your investment targets over the... [asked only of investors; national n=2,314, Manitoba n=225] Among investors only 75 75 National % Optimistic Manitoba = % Optimistic 45% 43% 2020 10% 35% 30% 15% 6% 2020 6% 37% 30% 14% 9% ...next 12 months 2017 13% 41% 30% 9%4% 53% 2017 11% 35% 33% 11%3% 47% 2012 9% 33% 34% 14% 5% 42% 2012 7% 30% 36% 15% 2% 48% 2020 15% 46% 24% 8% 3% 60% 2020 10% 44% 25% 11% 5% 54% ...next five years 2017 15% 44% 27% 8% 3% 59% 2017 14% 40% 30% 8%3% 53% 2012 13% 44% 26% 9%4% 57% 2012 9% 41% 31% 6% 4% 50% I Very optimistic Neither optimistic nor pessimistic I Very pessimistic Note: 2017 national n=2,346, MB n=221; 2012 national n=2,873, MB n=125 Somewhat optimistic Somewhat pessimistic Don't know INNOVATIVE RESEARCH GROUP#76Income Optimism: Just over half (55%) of Manitoban investors are optimistic about their income over the next 12 months Q How would you rate your ability to maintain or increase your current income over the next 12 months? [asked only of investors; national n=2,314, Manitoba n=225] Among investors only 2020 17% 35% 39% National ✶ 2017 19% 2012 17% 36% Manitoba HE 2020 16% 39% 2017 18% 40% 27% 26% 28% % Optimistic 12% 6% 3% 52% 9% 5% 2% 58% 10% 5% 3% 54% 24% 13% 6% 2% 55% 23% 9% 5% 5% 58% 2012 19% 35% 32% Very optimistic Somewhat optimistic Neither optimistic nor pessimistic Somewhat pessimistic ■Very pessimistic Don't know Note: 2017 national n=2,346, MB n=221; 2012 national n=2,873, MB n=125 7% 3% 4% 54% 76 66#77Personal Optimism: Majority of frequent investors, high knowledge, and younger investors are optimistic about future investment targets How would you rate your ability to... by key segments Q [asked only of investors; n=225] Manitoba Investor Segments Investment Knowledge Adviser Segments Age Gender 77 7 % optimistic Non- frequent Frequent investor Low Medium High DIY Advised 18-34 35-54 55+ Men Women investor Meet investment targets... 36% 56% 39% 41% 51% 37% 45% 57% 38% 40% 48% 37% 12 months Meet investment targets... 50% 62% 49% 53% 62% 44% 57% 61% 48% 56% 58% 48% five years Maintain or increase 48% 68% 57% 56% 50% 55% 55% 63% 54% current income 51% 57% 52% INNOVATIVE RESEARCH GROUP#78Condition of the Economy: Optimism on economic growth and unemployment rate has dropped significantly in 2020 Q Now we would like you to think about the factors that could affect the overall investment environment. 78 As far as the general condition of the economy is concerned, how would you rate the following over the next 12 months? [asked of all respondents; national n=5,000, Manitoba n=500] National % Optimistic Manitoba % Optimistic Performance of the stock market 2020 4% 21% 30% 22% 9% 13% 26% 2017 5% 27% 36% 15% 4% 13% 31% 2017 2020 3% 19% 4% 21% 25% 29% 8% 16% 22% 34% 19% 5% 17% 25% Income growth 2020 4% 19% 28% 27% 12% 10% 23% 2020 4% 20% 26% 28% 12% 11% 24% Economic growth 2020 4% 19% 2017 6% 22% 31% 15% 9% 23% 2020 4% 19% 19% 30% 17% 10% 24% 35% 28% 18% 5%7% 2017 4% 36% 30% 15% 4% 11% 40% 41% Inflation 2020 4% 15% 27% 28% 14% 12% 2020 3%12% 26% 28% 14% 16% 15% 19% 2017 4% 19% 33% 26% 9% 9% 2017 4% 17% 31% 28% 7% 13% 21% 23% Unemployment 2020 rate 2017 3% 14% 4% 28% 20% 35% 31% 22% 18% 9% 7% 7% 17% 2017 2020 3% 13% 17% 4% 37% 18% 12% 16% 27% 31% 20% 6% 11% 32% 32% Very optimistic Somewhat pessimistic Note: 2017 n=5,000; 'Income growth' added in 2020 Somewhat optimistic Very pessimistic Neither optimistic nor pessimistic Don't know#79Condition of the Economy: Frequent investors are the most optimistic about all five measures of the condition of the economy Q As far as the general condition of the economy is concerned, how would you rate the following over the next 12 months? by key segments [asked of all respondents; n=500] 79 19 Manitoba Investment Knowledge Adviser Segments Investor Segments Age Gender % optimistic No savings Savings, Non- non- frequent investor investor Frequent investor Low Medium High Non- investor DIY Advised 18-34 35-54 55+ Men Women Performance of the stock market 16% 9% 31% 42% 17% 29% 24% 12% 32% 35% 22% 18% 26% 28% 16% Income growth 23% 13% 25% 47% 21% 28% 26% 17% 24% 34% 27% 25% 19% 29% 18% Economic 24% 16% 23% 41% 20% 29% 25% 19% 27% 30% 25% 21% 25% 31% 17% growth Inflation 18% 8% 16% 29% 15% 18% 13% 12% 11% 23% 18% 15% 14% 20% 11% Un-employment rate 12% 13% 17% 27% 14% 21% 14% 13% 20% 21% 17% 16% 16% 19% 13% INNOVATIVE RESEARCH GROUP#80Now we would like you to think about the factors that could affect the overall investment environment. Condition of the Economy: Savers and Investors show far less optimism on economic growth and the rate of unemployment than in 2017 Q As far as the general condition of the economy is concerned, how would you rate the following over the next 12 months? [asked of all respondents, shown among savers and investors only; national n=3,784, Manitoba n=398] Among savers and investors only National % Optimistic Manitoba % Optimistic 2020 5% 24% 30% 23% 8% 10% 28% 2020 Performance of the stock market 2017 5% 30% 37% 16% 3%8% 35% 3% 21% 2017 4% 23% 26% 31% 7% 12% 24% 34% 20% 4% 15% 27% 2012 4% 22% 31% 26% 9% 8% 26% 2012 4% 21% 29% 31% 6% 10% 25% Income growth 2020 5% 21% 29% 27% 10% 8% 26% 2020 3% 21% 28% 28% 10% 10% 24% 2020 4% 20% 22% 33% 14% 6% 24% 2020 2% 21% 19% 32% 17% 8% 24% Economic growth 2017 6% 2012 38% 29% 17% 4% 5% 45% 2017 4% 38% 31% 15% 3% 9% 42% 5% 31% 27% 25% 7%5% 36% 2012 8% 35% 28% 19% 4%6% 43% 2020 4% 16% 28% 30% 13% 9% 20% 2020 3% 12% 27% Inflation 2017 4% 21% 35% 27% 2012 5% 19% 33% 28% 7% 6% 9% 7% 25% 2017 4% 18% 32% 24% 2012 5% 24% 32% 30% 14% 13% 15% 29% 6% 11% 22% 24% 8% 8% 29% Unemployment 2020 3% 15% 2017 5% 21% 37% 30% 34% 17% 7% 21% 6%5% 35% 18% 2020 3% 14% 16% 2017 4% 31% rate 2012 4% 22% 30% 28% 10% 6% 26% 2012 5% 25% 39% 18% 10% 17% 33% 18% 4% 9% 35% 29% 24% 10% 7% 30% ■Very optimistic Somewhat pessimistic Note: 2017 national n=3,453, MB n=362; 2012 national n=3,749, MB n=165 Somewhat optimistic Very pessimistic Neither optimistic nor pessimistic Don't know 80#81Market Expectations 81#8282 22 Calculating "Reasonable" Rate of Return For the purposes of this study, we consider a "reasonable" market rate of return to be anything less than 4%. This rate is based on the 5-year nominal return of 3.8% on three-month treasury bills, all Canadian bonds, and the TSX Composite Index between 2015 and 2019. In 2017 the reasonable rate of return, calculated based on the years 2012 to 2016 was also 4%. 5 year 'Nominal' Return 2015 2016 2017 2018 2019 average Three-month T-bills 0.6% 0.5% 0.6% 1.3% 1.7% 0.9% All Canadian Bonds 3.5% 1.7% 2.5% 1.4% 6.9% 3.2% TSX Composite Index -8.3% 21.1% 9.1% -8.9% 22.9% 7.2% Equal weighted average across asset classes -1.4% 7.8% 4.1% -2.1% 10.5% 3.8% Source: BCSC Note: Nominal is the stated return, while real is stated return minus inflation rate. INNOVATIVE RESEARCH GROUP#83Expectations | Market Rate of Return: Manitobans are more likely to expect "unreasonable" returns in 2020 (36%) than in previous years Q What do you think is the annual rate of return today on the average investment portfolio? [asked of all respondents; open-ended; national n=5,000, Manitoba n=500] Manitoba Average Expected Rate of Return National 83 0% Less than 1% 1% 1% 1% 1% to less than 2% 1% 2% 4% 2% to less than 3% 1% 5% 4% 3% to less than 4% 4% 2% 3% 4% to less than 5% 3% 9% 8% 5% to less than 6% 5% 6% 8% 6% to less than 7.5% 5% 7% 7% 7.5% to 10% 7% 2% 10% more than 10% 8% 9% Don't know "Reasonable" rate of return of (4% or less) 2020: 9% 2017: 7% 2012: 10% National "Reasonable" rate of return of (4% or less) 2020: 10% 2017:9% 2012: 12% Manitoba "Unreasonable" rate of return (more than 4%) 2020: 36% National "Unreasonable" rate of return (more than 4%) 2020: 37% 2017: 28% 2012: 33% 2020 55% 2017 65% 58% 2012 2017: 31% 2012: 29% • 2020: mean 9.83%, median 6.00% . · 2017: mean 9.42%, median 6.00% 2012: mean 7.89%, median 5.00% Manitoba • 2020: mean 8.92%, median 6.00% • 2017: mean 10.01%, median 7.00% • 2012: mean 7.33%, median 5.00% [Those who say "don't know" are not included in this calculation] Note: 2017 national n=5,000, MB n=500; INNOVATIVE 2012 national n=5,198, MB n=218 RESEARCH GROUP#84Expectations | Market Rate of Return: Older, middle income, and 84 higher knowledge Manitobans more likely to expect 'reasonable' returns Q What do you think is the annual rate of return today on the average investment portfolio? by key segments [asked of all respondents; open-ended; Manitoba n=500] % With "reasonable" expectation <4% (Overall 9%) Age Investor Segments 18-34 7% 35-54 7% No savings Savings, non-investor Non-frequent investor 6% 10% 10% 55+ 13% Frequent investor 7% Investment Knowledge Gender Low 6% Men 7% Medium 13% High 12% Women 11% Adviser Segments Education Non-investor 9% High school or less DIY investor 8% 7% Advised investor 9% College 11% Manitoba Region University 9% Winnipeg 11% South/West 6% Household Income Central/North 8% <$40k 7% Winnipeg Region Central/North 12% $40k-$80k 13% East 10% $80k+ 6% South/West 11%#85Expectations | Market Rate of Return: 4-in-10 (38%) savers and investors give an "unreasonable" rate of return on the avg portfolio Q What do you think is the annual rate of return today on the average investment portfolio? [asked of all respondents; shown among savers/investors only; open-ended; national n=3,784, Manitoba n=398] Less than 1% 0% 1% 1% 0% 1% to less than 2% 1% 3% 5% 2% to less than 3% 2% 5% 4% 3% to less than 4% 5% 2% 3% 4% to less than 5% 4% 10% 9% 5% to less than 6% 7% 7% 9% 6% to less than 7.5% 5% 9% 8% 7.5% to 10% 9% 2% 9% more than 10% 7% 6% Among savers and investors only Manitoba "Reasonable" rate of return of (4% or less) 2020: 10% 2017: 9% 2012: 11% National "Reasonable" rate of return of (4% or less) 2020: 11% 2017: 10% 2012: 14% Manitoba "Unreasonable" rate of return (more than 4%) 2020: 38% National "Unreasonable" rate of return (more than 4%) 2020: 41% 2017: 32% 2012: 33% 2017: 36% 2012: 32% Average Expected Rate of Return National • 2020: mean 9.23%, median 6.00% • 2017: mean 9.02%, median 6.00% • 2012: mean 7.20%, median 5.00% Manitoba • 2020: mean 8.30%, median 6.00% • 2017: mean 9.03%, median 6.00% • 2012: mean 6.38%, median 5.00% [Those who say "don't know" are not included in this calculation] 85 Don't know 2020 52% 2017 59% 56% 2012 Note: 2017 national n=3,453, MB n=362; 2012 national n=3,749, MB n=165 INNOVATIVE RESEARCH GROUP#86Expectations | Own Investment Portfolio Return: Half (48%) of investors think their portfolio returns more than 4% a year Q What do you think is the annual rate of return today on your investment portfolio? [asked of investors only; open-ended; national n=2,314, Manitoba n=225] 2% Less than 1% 0% 3% 1% 1% to less than 2% 1% 1% 5% 2% to less than 3% 3% 5% 4% 3% to less than 4% 5% 8% 8% 4% to less than 5% 3% 7% 7% 5% to less than 6% 9% 8% 12% 6% to less than 7.5% 7% 10% 9% 7.5% to 10% 9% 2% 12% more than 10% 13% 7% Don't know Manitoba Among investors only "Reasonable" rate of return of (4% or less) 2020: 13% 2017: 9% 2012: 16% National "Reasonable" rate of return of (4% or less) 2020: 12% 2017: 12% 2012: 16% Manitoba "Unreasonable" rate of return (more than 4%) 2020: 48% National "Unreasonable" rate of return (more than 4%) 2020: 49% 2017: 41% 2012: 36% 2017: 43% 2012: 39% Average Expected Rate of Return National • 2020: mean 9.80%, median 7.00% • 2017: mean 10.04%, median 6.00% • 2012: mean 7.85%, median 5.00% Manitoba • 2020: mean 8.49%, median 6.00% • 2017: mean 11.50%, median 7.00% • 2012: mean 6.25%, median 5.00% [Those who say "don't know" are not included in this calculation] 2020 2017 39% 50% 2012 49% Note: 2017 national n=2,364, MB n=221; 2012 national n=2,873, MB n=125 86 INNOVATIVE RESEARCH GROUP#87Expectations | Own Portfolio Return: Women and lower income investors are more likely to have a 'reasonable' return expectation Q What do you think is the annual rate of return today on your investment portfolio? by key segments [asked of investors only; open-ended; Manitoba=225] % With "reasonable" expectation <4% (13% overall) Age Investor Segments 18-34 11% Non-frequent investor 14% 35-54 13% Frequent investor 10% 55+ 14% Investment Knowledge Gender Low 13% Men 11% Medium 11% Women 15% High 15% Education Adviser Segments High school or less 17% DIY investor 10% College 18% Advised investor 14% University 8% Manitoba Region Household Income <$40k Winnipeg 11% 15% $40k-$80k 16% South/West 15% $80k+ 10% Central/North 15% 87#88Sources of Information#89Sources of Information: Half (50%) of investors last looked for investment information through their financial adviser Q When you last looked for information about investing, did you look for this information from any of the following sources? Please select all that apply. [asked of investors only; multiple mention; national n=2,314, Manitoba n=225] Among investors only National A financial adviser, such as a bank adviser, stock broker, financial planner, etc. 49% 51% Your bank or financial institution's website 36% 38% Information from the company on their website, in print, or in an advertisment 24% Family and friends 22% 28% Media such as newspapers, television, or news websites 22% 20% Disclosure documents from the company such as Fund Facts or prospectuses 17% 17% 7% Your provincial regulator 6% 1% Other 2% 13% Manitoba A financial adviser, such as a bank adviser, stock broker, financial planner, etc. 50% 51% 32% Your bank or financial institution's website 37% Family and friends Information from the company on their website, in print, or in an advertisment Media such as newspapers, television, or news websites Disclosure documents from the company such as Fund Facts or prospectuses 24% 28% 23% 18% 16% 16% 12% 4% Your provincial regulator 4% 1% Other 1% Don't know/None 14% 16% ■2020 ■ 2017 Don't know/None ■2020 12% ■2017 *Note: In 2020, 'Information from the company on their website, in print, or in an advertisement" is added. Before 2020, 'Disclosure documents from the company s prospectuses' was 'Documents from the company such as Fund Facts or prospectuses; 2017 national n=2,364, MB n=221 89#90Sources of Information: Very few (4%) consulted provincial regulator, slightly more younger Manitobans report their regulator as a source Q When you last looked for information about investing, did you look for this information from any of the following sources? Please select all that apply. [asked of investors only; multiple mention; Manitoba n=225] % Who say 'your provincial regulator' (4%) Age Investor Segments 18-34 7% Non-frequent investor 3% 35-54 2% Frequent investor 4% 55+ 3% Investment Knowledge Gender Low 5% Men 3% Medium 4% Women 4% High 0% Education Adviser Segments High school or less 5% DIY investor 1% College 2% Advised investor 4% University 4% Manitoba Region Household Income <$40k 2% Winnipeg 3% $40k-$80k South/West 6% 4% $80k+ 4% Central/North 0% 90 06#91Information Segmentation: A third (32%) looked for info from their bank/adviser only, on par with the national average Based on the types of sources investors look at for information about investing, we segment investors into four key groups. Used other sources of investing info Yes No Use investing info from No adviser or bank Yes NZ Manitoba No information Bank/ adviser only Bank/adviser only Those who looked for investing info provided by their bank/adviser only 32% 3rd party sources only Bank/ adviser and 3rd party sources 14% No information 21% Those who do not look for investing info or don't know the sources of the info HE National 31% 37% 13% 19% 33% Bank/adviser and 3rd party sources Those who looked for investing info from their bank/adviser AND other sources 3rd party sources only Those who did not use info provided by bank/adviser but relied solely on info from other sources 91#92Sources of Information Segments: Women, those 55 and older, and those from Winnipeg most likely to consult only their bank or adviser Sources of information segments by gender, age, and region Among investors only - Manitoba 33% 21% 14% 92 2 Overall 32% Gender Men 26% 34% 24% 16% Women 40% 31% 17% 12% Age 18-34 21% 35-54 30% 55+ 41% 40% 29% 9% 30% 22% 18% 32% 14% 13% Manitoba Region Winnipeg 37% South/West 29% Central/North 20% 32% 36% 34% 19% 12% 19% 16% 30% 16% Bank/adviser only Bank/adviser and 3rd party sources 3rd party sources only I No information#93Sources of Information Segments: Non-frequent investors (39%) are more likely than frequent (19%) to rely solely on bank/adviser for info Sources of information segments by investor type and adviser segments Overall Investor type Non-frequent investor Frequent investor Adviser segments DIY Advised 19% 24% 32% 39% 35% Among investors only - Manitoba 18% 43% 33% 28% 38% 34% 21% 14% 23% 19% 14% 17% Bank/adviser Only Bank/adviser and 3rd party sources 3rd party sources only No information 24% 14% 11% INNOVATIVE RESEARCH GROUP 93#9494 Social Media: 7-in-10 (71%) say they do not use social media as sources of information about investing, slightly above the national average Q Do you use any of the following social media websites or services as sources of information about investing? [asked of all respondents; multiple mention; n=5,000, Manitoba n=500] National YouTube 18% Facebook 17% Instagram 10% LinkedIn 7% Twitter 7% Reddit 6% Blogs 6% Online classifieds (Craigslist, Kijiji, etc.) 4% Snapchat 4% Pinterest 4% TikTok 4% Other <1% None 2020 results only 67% Manitoba YouTube 15% Facebook 15% Instagram 10% Twitter 7% LinkedIn 7% Pinterest 6% Snapchat 5% Blogs 5% Reddit 4% TikTok 4% Online classifieds (Craigslist, Kijiji, etc.) 4% Other <1% None of these 71%#95Social Media | Tracking: The share saying they don't use any social media sources for investing info is up 10 points since 2017 to 71% Q Do you use any of the following social media websites or services as sources of information about investing? [asked of all respondents; multiple mention; n=5,000, Manitoba n=500] Key tracking National Manitoba 18% 15% YouTube 20% YouTube 18% 14% 12% 17% 15% Facebook 22% Facebook 21% 16% 11% 10% 10% Instagram 8% Instagram 10% 7% 7% LinkedIn 10% Twitter 9% 5% 4% 7% 7% Twitter 9% 2020 LinkedIn 9% ■2020 7% 2% 6% 2017 5% ■2017 Blogs 12% Blogs 10% 11% ■2012 9% ■ 2012 Online classifieds (Craigslist, Kijiji, 4% 14% etc.) 11% Online classifieds (Craigslist, Kijiji, etc.) 4% 12% 8% <1% <1% Other 1% <1% Other 1% 1% None 67% 57% 65% None of these 61% 71% 70% Note: 2017 national n=5,000, MB n=500; 2012 national n=5,198, MB n=218; 'Four Square' and 'Myspace' only included in 2012 (not shown); 'Instagram' was added in 2017; ‘RSS News Feeds' and 'Google or Yahoo! Groups' (not shown) only asked in 2017 and 2012; 'Reddit', 'TikTok', 'Snapchat', 'Pinterest' added in 2020 95 55#96Social Media: Younger Manitobans, those with lower knowledge, and frequent investors are most likely to use social media as sources Q When you last looked for information about investing, did you look for this information from any of the following sources? Please select all that apply. by key segments [asked of all respondents; multiple mention; n=500] Manitoba K- Investor Segments Investment Knowledge Adviser Segments Age Gender % who selected platform Savings, Non- No savings non- frequent investor investor Frequent investor Low Medium High Non- investor DIY Advised 18-34 35-54 55+ Men Women YouTube 24% 11% 9% 25% 18% 14% 7% 16% 10% Facebook 20% 13% 9% 24% 20% 11% 5% 16% 8% 16% 29% 14% 16% 23% 16% 8% 5% 13% 17% 11% 19% Instagram 11% 11% 6% 17% 13% 9% 5% 11% 5% 11% 20% 10% 3% 8% 13% Twitter 10% 5% 6% 10% 9% 4% 3% 7% 1% 9% 11% 7% 3% 7% 7% LinkedIn 3% 5% 6% 14% 8% 5% 6% 5% 4% 10% 8% 8% 3% 7% 6% Pinterest 7% 6% 5% 8% 7% 6% 4% 7% 3% 7% 12% 6% 1% 4% 8% Snapchat 6% 5% 3% 5% 6% 4% 3% 6% 3% 4% 11% 4% 0% 4% 6% Blogs 4% 4% 3% 11% 5% 5% 5% 4% 6% 6% 9% 4% 3% 4% 6% Reddit 4% 3% 4% 7% 3% 6% 3% 3% 3% 5% 8% 3% 1% 5% 3% TikTok 8% 3% 1% 6% 6% 2% 5% 2% 3% 10% 3% 2% 5% Online classifieds 6% 2% 4% 4% 5% 2% 3% 3% 8% 3% 8% 4% 0% 3% 5% Use at least 43% 22% 18% 48% 36% 23% 18% 30% 24% 30% 53% 26% 12% 26% 32% one site 96 96#97Social Media: residents of Central/North Manitoba are much less likely to look at investing information from social media Q When you last looked for information about investing, did you look for this information from any of the following sources? Please select all that apply. by key segments [asked of all respondents; multiple mention; n=500] Manitoba Manitoba Regions Winnipeg Sub-regions % who selected platform Winnipeg South/West Central/North Central/North East South/West YouTube 18% 14% 6% 20% 14% 21% Facebook 16% 16% 10% 14% 16% 17% Instagram 12% 10% 5% 7% 10% 17% Twitter 8% 6% 5% 5% 9% 9% LinkedIn 8% 6% 3% 8% 7% 9% Pinterest 5% 9% 5% 8% 3% 6% Snapchat 6% 6% 6% 3% 8% Blogs 5% 7% 3% 4% 5% 5% Reddit 6% 2% 7% 5% 6% TikTok 4% 3% 4% 5% 4% 4% Online classifieds 5% 3% 1% 7% 4% 5% Use at least 33% 29% 16% 29% 29% 39% one site 46 97#98Investment Opportunities on Social Media: 1-in-4 (26%) Manitobans have seen investment opportunities advertised on social media Q Have you ever seen information on investment opportunities advertised on social media? [asked of all respondents; national n=5,000, MB n=500] Segmentation (Manitoba 2020) Respondents who say "yes" 98 Investor Segments No savings 29% National Manitoba Savings, non-investor 19% Non-frequent investor 24% Frequent investor 43% 2020 29% 56% 16% 2020 26% 59% 15% Investment Knowledge Low 24% Medium 29% High 26% Advised Segments Non-investor 23% DIY investor 18% Advised investor 34% 2017 27% 61% 12% 2017 26% 62% 12% Manitoba Region Winnipeg 29% South/West 26% Central/North 16% Winnipeg Region Central/North 30% East 25% South/West 32% 2012 24% 62% 15% 2012 15% 71% 14% Age 18-34 41% 35-54 23% 55+ 16% Gender Yes No Don't know Men 29% Women 23% Note: 2017 national n=5,000, MB n=500; 2012 national n=5,198, MB n=218#99Awareness of Securities Regulators#100Awareness of Securities Regulator: 3-in-10 (29%) are aware of the MSC, lower than the national average (39%) but steady since 2017 Q Is there a [provincial/territorial] government agency responsible for regulating financial investments in your [province/territory]? [asked of all respondents; national n=5,000, Manitoba n=500] Segmentation (Manitoba 2020) Respondents who say "yes" 100 Investor Segments No savings 29% National ⭑ Manitoba NV Savings, non-investor 16% Non-frequent investor 34% Frequent investor 52% Investment Knowledge Low 18% 2020 39% 6% 55% 2020 29% 5% 66% Medium 37% High 53% Advised Segments Non-investor 21% DIY investor 32% Advised investor 42% Manitoba Region 2017 36% 5% 59% 2017 27% 4% 68% Winnipeg 31% South/West 27% Central/North 27% Winnipeg Region Central/North 26% East 30% South/West 36% 2012 39% 4% 57% 2012 37% 3% 60% Age 18-34 26% 35-54 24% 55+ 38% Gender Yes No ■Don't know Note: 2017 national n=5,000, MB n=500; 2012 national n=5,198, MB n=218 Men 33% Women 25%#101Familiarity with Regulator: Less than 1-in-4 (22%) Manitobans say they are familiar with the named regulator, down seven points since 2012 Q In fact, there is a [provincial/territorial] agency in [province/territory] responsible for regulating financial investments called the [agency name]. Now that we have mentioned the [agency name], how familiar would you say you are with this agency? [asked of all respondents; national n=5,000, MB n=500] Segmentation (Manitoba 2020) Respondents who say "very/somewhat 101 familiar" Investor Segments No savings Savings, non-investor 14% 12% National % Familiar Manitoba % Familiar Non-frequent investor 28% Frequent investor 43% Investment Knowledge Low 2020 7% 25% 40% 28% 32% 2020 4% 18% 45% 33% 22% 14% Medium 27% High 39% Advised Segments Non-investor 13% DIY investor 27% Advised investor 35% 2017 7% 24% 41% 27% 31% 2017 3% 19% 48% 30% 22% Manitoba Region Winnipeg 24% South/West 25% Central/North 10% Winnipeg Region Central/North 21% 2012 9% 27% 41% 24% 2012 36% 4% 25% 52% 19% East 29% 23% South/West 27% Age 18-34 18% Very familiar Somewhat familiar Not very familiar I have not heard of that agency before this survey Note: 2017 national n=5,000, MB n=500; 2012 national n=5,198, MB n=218 35-54 20% 55+ 27% Gender Men 25% Women 20%#102Robo-Advisers This section was preceded by an explanation of the topic: The next few questions are about online investment advisers - often referred to as "robo-advisers". Online investment advisers are offered through a website or app. Generally, you can authorize them to carry out transactions on your behalf, consistent with your investment goals and risk profile. Some examples include WealthSimple, CI Direct Investing (formerly WealthBar), Nest Wealth and Questwealth Portfolios. Please note: Online investment advisers refer to services where most investment decisions are made on your behalf without your specific approval for each trade. For this reason, online investment advisers are not the same thing as online discount brokerages where you do not get advice about the suitability of the investments and you have to choose them for yourself.#103Familiarity with Robo-Advisers: 15% of Manitobans say they are familiar with robo-advisers, on par with the national average (16%) Q How familiar are you with online investment advisers (also known as robo-advisers)?* [asked of all respondents; national n=5,000, MB n=500] Segmentation (Manitoba 2020) Respondents who say "very/somewhat familiar" National % Familiar Manitoba УИ NV == E % Familiar Investor Segments No savings Savings, non-investor Non-frequent investor Frequent investor 9% 8% 15% 40% Investment Knowledge 2020 3% 3% 2% 22% 31% 24% 6% 16% 2020 13% 19% 39% 23% 4% 15% Low 12% Medium 14% High 27% Advised Segments Non-investor 8% DIY investor Advised investor 25% 24% Manitoba Region Winnipeg 15% 2017 3% 3% 20% 2% 32% 28% 4% 16% 2017 13% 17% 31% 34% 3% 15% South/West Central/North 19% 9% Winnipeg Region Central/North 17% East 11% South/West 18% Age ■Very familiar Somewhat familiar 18-34 22% I Not very familiar Not familiar at all 35-54 15% 55+ 11% I have not heard of these services before Don't know Gender Men 18% *Note: In 2017, question text was "How familiar are you with automated online investing services?"; 2017 national n=5,000, MB n=500 Women 13% 103#104Use of Robo-Advisers: 1-in-10 (11%) investors use a robo-advisor, highest use among frequent investors, men, and those under 55 Q Which of the following best describes you?* [asked only of investors; national n=2,314, Manitoba n=225] National Among investors only % Currently Manitoba HA NV % Currently use Segmentation (Manitoba 2020) Respondents who currently use an online service Investor Segments Non-frequent investor Frequent investor 8% 18% use Investment Knowledge Low 10% 2020 3% 7%8% 4% 78% 4% 10% 2020 7%8% 78% 3% 11% Medium 14% High 9% Advised Segments DIY investor Advised investor 13% 11% Manitoba Region 2017 3% 6%9% Winnipeg 8% 76% 6% 10% 2017 3% 6% 9% 75% 7% 9% South/West 16% Central/North 11% Age 18-34 13% My primary investment account is currently at an online investment adviser ■I currently have an investment account with an online investment adviser, but it is not my primary account II have used an online investment adviser in the past, but currently do not use one 35-54 17% 55+ 3% Gender I have never used an online investment adviser ■Don't know Men 14% Women 8% *Note: In 2017, any instance of "online investment adviser" in the response codes said "automated online investing service" 2017 national n=2,364, MB n=221 104#105Length of Use: 17 of the 25 respondents with an online adviser have had one for less than 6 months (n=8) or between 1 and 5 years (n=9) 105 How long have you used an online investment adviser? Q [asked only of investors with an online investment adviser; Manitoba n=25] Note: Frequencies shown due to small sample size. 80 Manitoba Among investors with an online investment adviser 5 9 3 Less than six months Between six months and one year Between one year and five years More than five years INNOVATIVE RESEARCH GROUP#106Reasons for Using Robo-Adviser: The top reasons for opening an account with an online adviser are convenience and lower fees Q Which of the following is the most important reason that you decided to open an account with an online investment adviser? [asked only of investors with an online investment adviser; Manitoba n=25] Note: Frequencies shown due to small sample size. Manitoba = Among investors with an online investment adviser It is more convenient The fees are lower than other options They accept clients like me who have low minimum investment amounts I don't trust traditional financial institutions and investment companies They offered additional services such as savings accounts, trading accounts, or financial planning services The investments perform better 1 Something else Don't know 1 2 2 2 3 7 ས 7 106 INNOVATIVE RESEARCH GROUP#107Reasons for Not Using Robo-Adviser: Top reason for use not using online adviser is satisfaction with current adviser (27%) Q Which of the following is the most important reason that you are not using an online investment adviser?* [asked only of investors without an online investment adviser; national n=2,086, Manitoba n=200] 107 Among investors without an online investment adviser 2017 2020 I am happy with my current adviser and have not considered alternatives I do not know enough about them I do not trust investing through the internet It is important to me to meet with the person managing my investments My current adviser offers additional services - such as financial planing - that robo-advisers do not 6% 8% 3% I think the fees they charge are too high 3% I am worried the returns would be lower than with a traditional adviser 1% 3% 2% Other 2% Don't know 4% 5% 18% 15% 16% 17% 24% 21% 23% 26% I am happy with my current adviser and have not considered alternatives I do not trust investing through the internet I do not know enough about them It is important to me to meet with the person managing my investments My current adviser offers additional services - such as financial planing - that robo-advisers do not 27% 22% 20% 15% 17% 17% 12% 14% 7% 7% 5% I want to be able to choose individual stocks 8% Manitoba I think the fees they charge are too high I am worried the returns would be lower than investing on my own 3% National 4% 3% 3% I am worried about what would happen if they went bankrupt 2% 3% I am worried the returns would be lower than with a traditional adviser 1% 1% 0% Other 1% Don't know 4% 5% *Note: In 2017, question text was "Which of the following is the most important reason that you are not using an automated online investing service?"; Response codes "I am worried the returns would be lower than investing on my own", "I am worried about what would happen if they went bankrupt" and "I want to be able to choose individual stocks" were added in 2020; In 2017, "I do not trust investing online (through the internet)" was "I do not trust investing through the internet"; 2017 national n=2,099, MB n=202#108Reasons for Not Using Robo-Adviser: Older investors are most likely to avoid online advisers because they're happy with their current adviser Q Which of the following is the most important reason that you are not using an online investment adviser? By key segments [asked only of investors without an online investment adviser; n=200] Among investors without an online investment adviser Manitoba Investor Segments Investment Knowledge Adviser Segments Age Gender % who selected reason Non- frequent Frequent Low Medium High DIY Advised 18-34 35-54 55+ Men Women Happy with adviser Don't know enough 28% 24% 27% 26% 28% 6% 33% 21% 19% 38% 25% 30% 18% 13% 19% 17% 13% 19% 16% 12% 26% 10% 18% 16% Distrust investing online (22%) 15% 21% 21% 18% 26% 19% 21% 23% 17% 19% 20% Important to meet in-person 12% 10% 12% 10% 13% 6% 13% 9% 11% 14% 9% 15% Want to be able to choose stocks 2% 10% 1% 5% 10% 12% 3% 11% 2% 4% 6% 3% Adviser offers add'l services 6% 7% 5 1% 6 11% 8% 3% 8% 8% 5% 7% 7% 6% Fees too high 2% 5% 2% 2% 6% 13% --- 4% 3% 3% 6% 1% Worried: returns lower than investing myself 2% 6% 7% 2% 1% 2% 4% 7% 3% 2% 5% 2% Worried: if they went bankrupt 1% 4% 3% 2% 3% 1% 1% 3% 1% 2% 1% Worried: lower returns than traditional 1% 3% -- 1% 2% -- 1% -- 2%#109Satisfaction with Robo-Advisers: MB respondents with an online investment adviser are either satisfied or neutral with their experience Q Overall, how satisfied or dissatisfied are you with your experience of investing through the online investment adviser? [asked only of investors with an online investment adviser; Manitoba n=25] Note: Frequencies Manitoba Among investors with an online investment adviser shown due to small sample size. 2 11 11 1 0 0 Very satisfied Somewhat satisfied Neutral Somewhat dissatisfied Very dissatisfied Don't know 109 INNOVATIVE RESEARCH GROUP#110110 Likelihood of Using Robo-Advisers: 14% say they are likely to use robo-¹¹ adviser if opening a new account; slightly below national avg (18%) Q If you were planning to open a new account - or to move an existing account - how likely would you be to use an online investment adviser for that account, rather than a traditional in-person adviser?* [asked of all respondents; national n=5,000, Manitoba n=500] Segmentation (Manitoba 2020) Respondents who say "very/somewhat likely" National % Likely Manitoba % Likely Investor Segments No savings Savings, non-investor 16% 9% Non-frequent investor 11% Frequent investor 31% Investment Knowledge 4% 2020 14% 24% 44% 14% 2020 18% 13% 26% 47% 14% 14% Low Medium High E 13% 17% 14% Advised Segments Non-investor 12% DIY investor 15% Advised investor 18% Manitoba Region Winnipeg 18% South/West 13% Central/North 4% 2017 4% 18% 26% 40% 12% 2017 16% 23% 45% 12% Winnipeg Region 23% 20% Central/North 15% East 22% South/West 16% Age 18-34 24% 35-54 15% Very Likely Somewhat Likely Not very likely Not likely at all Don't know 55+ 4% Gender Men 18% Women 11% *Note: In 2017, question text was "... how likely would you be to use an automated online service for that account...?"; 2017 national n=5,000, MB n=500#111Robo-Adviser Attitudes: Agreement that an in-person adviser can help with performance is down 12 points since 2017 to 37% Q Please indicate if you agree or disagree with the following statements?* [asked of all respondents; national n=5,000, MB n=500] 111 An in-person adviser can help my investments perform better than an online investment adviser National Total agree Manitoba Total agree 2020 12% 26% 32% 2% 22% 6% 38% 2020 12% 24% 34% 7% 21% 2% 37% 2017 14% 30% 28% 2% 22% 4% 44% 2017 16% 5% 33% 23% 1% 23% 49% Online investment advisers charge lower fees than in- person advisers 2020 7% 20% 21% 2% 47% 27% 2020 4% 17% 3% 49% 22% 4% 23% 3% 2017 5% 17% 24% 4%2% 49% 22% 2017 4% 14% 3% 55% 21% 2% 18% Using an online investment 2020 5% 14% 25% 20% 12% 24% 19% 2020 2% 14% 24% 20% 15% 25% 16% adviser is not any riskier than investing through an in-person adviser 2017 4% 15% 28% 16% 9% 28% 19% 2017 5% 14% 20% 18% 11% 32% 19% Strongly agree Somewhat agree Neither agree nor disagree Somewhat disagree I Strongly disagree Don't know *Note: In 2017, first question text was "An in-person adviser can help my investments perform better than an automated online investing service"; second was "Robo-advisers charge lower fees than in-person advisers"; third was "Automated online investing is not any riskier than investing through an in-person adviser" INNOVATIVE RESEARCH GROUP#112Robo-Adviser Attitudes: Frequent investors are most likely to feel in- person outperform robo-advisers, charge lower fees, and are no riskier Q Please indicate if you agree or disagree with the following statements? by key segments [asked of all respondents; Manitoba n=500] Investor Segments Manitoba Investment Knowledge Adviser Segments Age Gender % who agree Savings, Non- No savings non- frequent investor investor Frequent investor Low Medium High Non- investor DIY Advised 18-34 35-54 55+ Men Women In-person outperform robo-advisers 28% 30% 42% 51% 34% 40% 39% 30% 34% 48% 38% 31% 41% 34% 39% Robo-advisers charge lower 18% 13% 26% 38% 13% 25% 44% 15% 39% 27% 28% 22% 16% 25% 18% fees Robo-advisers are no riskier 15% 12% 16% 29% 15% 15% 22% 13% 22% 20% 21% 20% 9% 20% 13% 112#113Rules for Robo-Advisers: Most don't know about robo-adviser rules; higher knowledge and frequent investors most likely to say 'fewer' Q As far as you know, are there fewer rules for robo-advisers than in-person advisers, more rules, or are the rules about the same for robo-advisers as for in-person advisers? [asked of all respondents; national n=5,000, Manitoba n=500] Segmentation (Manitoba 2020) 113 National 61% Manitoba NV Respondents who say "fewer rules" Investor Segments No savings 10% 66% Savings, non-investor 3% Non-frequent investor 9% Frequent investor 13% Investment Knowledge Low 5% Medium 7% High 18% Advised Segments Non-investor 6% DIY investor 7% Advised investor 12% Manitoba Region Winnipeg 9% South/West 7% Central/North 5% More rules (7%) 22% Fewer rules (11%) More rules (6%) 20% Fewer rules (8%) Winnipeg Region Central/North 8% East 9% 8% 5% 3% 2% South/West 9% 5% 5% 3% Age 1% 18-34 9% 35-54 8% 55+ Many Somewhat About the Somewhat Many more rules more rules same rules fewer fewer rules rules Don't know enough to say Many Somewhat About the Somewhat Many Don't 7% Gender more more same fewer fewer know Men 9% rules rules rules rules rules enough to Women 7% say#114Building Understanding. For more information, please contact: Colin Whelan Vice President 604 900 6226 cwhelan@innovative research.ca © Copyright 2020 Innovative Research Group Inc. INNOVATIVE RESEARCH GROUP